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Friday 19 July 2013
Clayton Drug Dealer Sentenced to 30 Years ImprisonmentRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Terrence Boyle sentenced CALVIN DWIGHT MITCHELL, 27, of Clayton, North Carolina, to 360 months imprisonment followed by 10 years supervised release.
A Federal Grand Jury returned a Criminal Indictment on August 8, 2012, charging MITCHELL with one count of Conspiracy to Distribute and Possess with the Intent to Distribute 280 Grams or More of Cocaine Base (Crack) and Quantity of Cocaine, in violation of Title 21 U.S.C. §846, and one count of Distribution of Cocaine, 1 count of Aiding and Abetting Distribution of Cocaine, in violation of Title 21 U.S.C. §841. On May 24, 2013, after a 2 day trial, a jury convicted MITCHELL of the drug conspiracy and distribution counts.
The evidence in the case demonstrated that from at least March 2001, up to and including May 24, 2012, MITCHELL was involved in a drug conspiracy with several other individuals in the Smithfield area in a loose conspiracy to distribute cocaine and crack cocaine. Specifically, MITCHELL made statements immediately after his arrest and identified his sources of supply in the Smithfield area. All told, as part of the conspiracy, MITCHELL was held accountable for over 152 kilograms of crack cocaine. The evidence further showed that during the period of the drug conspiracy, MITCHELL sold crack cocaine to several informants, was convicted approximately nine times for selling cocaine, and sold approximately 27 grams of powder cocaine to an informant on May 24, 2012. Finally, during the trial, evidence was introduced showing that MITCHELL was involved in threats made to a confidential informant in July 2012.
Investigation of this case was conducted by the Johnston County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Rudy E. Renfer represented the government.
Chicago Man Sentenced to 5½ Years in Federal Prison for $2.6 Million Investment Fraud SchemeRead the Press Release
CHICAGO – A Chicago man was sentenced to 5½ years in federal prison for cheating about 35 victims of approximately $2.6 million in an investment fraud scheme. The defendant, ROBERT G. NELSON, offered and sold promissory notes, promising investors substantial returns, and instead used the money to pay earlier investors and for personal expenses.
Nelson, 40, who pleaded guilty to mail fraud last December, was sentenced yesterday to 66 months in prison by U.S. District Samuel Der-Yeghiayan. He was ordered to begin serving his sentence on Sept. 17, and the judge also ordered him to pay $2.643 million in restitution.
Nelson admitted that between January 2006 and the middle of 2008, he fraudulently obtained more than $6 million from investors by selling promissory notes personally and through his companies, F.C. Financial, Inc., Future Capital Financial Inc., and RGN Investment Group. He falsely promised that the notes were a safe and secure investment, and that proceeds from the sale of the notes would be used to purchase real estate and make investments that would promptly generate a high interest rate, sometimes as high as 45 percent within three months. He then used the money he obtained to pay earlier investors and for family expenses.
“Again and again, Nelson persisted in his scheme, assuring desperate investors that in exchange for one more investment, he would pay all of the monies that investor was owed. He thus fueled his fraud with more lies and false representations,” the government argued at sentencing.
In 2007, the Illinois Department of Securities prohibited Nelson and his companies from offering or selling promissory notes. The criminal investigation began after he violated the state order by continuing to sell promissory notes into the middle of 2008.
The sentence was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois. The investigation was conducted by the U.S. Postal Inspection Service in Chicago and the Illinois Secretary of State’s Securities Division. The government was represented by Assistant U.S. Attorney Kaarina Salovaara.
The case falls under the umbrella of the Financial Fraud Enforcement Task Force, which includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement, who working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit: StopFraud.gov.
Charges Filed in Manhattan Federal Court Against Mokhtar Belmokhtar for His Role in Terror Attack in Algeria and Other CrimesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, John Carlin, the Acting Assistant Attorney General for National Security, George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Raymond W. Kelly, the Police Commissioner of the City of New York (“NYPD”), today announced the filing of charges against MOKHTAR BELMOKHTAR for, among other things, his alleged participation in the January 2013 terrorist attack on a Western-owned gas processing facility near In Amenas, Algeria, that killed three Americans and scores of Algerian and foreign nationals. BELMOKHTAR is charged in an eight-count criminal Amended Complaint with various offenses including conspiracy to provide material support to al Qaeda and al Qaeda in the Islamic Maghreb (“AQIM”), hostage-taking conspiracy, kidnapping of internationally protected persons, and conspiring to use a weapon of mass destruction. BELMOKHTAR remains at large.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Mokhtar Belmokhtar unleashed a reign of terror years ago, in furtherance of his self-proclaimed goal of waging bloody jihad against the West. His efforts culminated in a four-day siege that left dozens dead, including three Americans, and hundreds of others fearing for their lives, as the Amended Complaint describes. For the victims, their families, and their friends, who hail from all over the world, five days must have seemed like an eternity. Belmokhtar brought terror and blood to these innocent people and now we intend to bring Belmokhtar to justice, as charged.”
Acting Assistant Attorney General for National Security John Carlin said: “The charges announced today underscore the Department’s commitment to bring to justice those responsible for attacks on Americans and American interests, no matter where they occur. I want to thank all of the agents, analysts, and prosecutors who helped bring about today’s result.”
FBI Assistant Director-in-Charge George Venizelos said: “The charges against Mokhtar Belmokhtar describe a fanatical jihadist leading an extremist vanguard of an extremist ideology. As alleged, he kidnapped diplomats, formed his own terrorist organization that pledged fealty to al Qaeda, and masterminded the murderous siege of a civilian plant in Algeria that resulted in the deaths of dozens of hostages, including three Americans. Belmokhtar, in furtherance of his ‘cause,’ has shown a commitment to kidnapping and murdering Western diplomats and other civilians. The cause of justice will be served by his apprehension and prosecution.”
NYPD Commissioner Raymond W. Kelly said: “The attack in Algeria underscores the fact that American lives remain at risk from al Qaeda and its affiliates. The NYPD remains committed to the interdiction of terrorists here and abroad and to the prevention of another terrorist attack in New York City.”
A Complaint against BELMOKHTAR initially was filed under seal in Manhattan federal court, on February 26, 2013, and is attached as an Exhibit to the Amended Complaint. As alleged in the Amended Complaint:
BELMOKHTAR was designated as a foreign terrorist by the U.S. Department of Treasury in 2003. As a key leader of al Qaeda’s efforts in North Africa, from 2008 through early 2013, BELMOKHTAR has orchestrated terror attacks involving the kidnapping and murder of numerous individuals. In support of al Qaeda, BELMOKHTAR has operated under the auspices of two groups: AQIM and the Al-Mulathamin Brigade and its recently formed battalion, “The Signers in Blood” (the “Battalion”).
In December 2008, BELMOKHTAR, and others acting at his direction, kidnapped two Western diplomats working in Niger as part of a United Nations mission. The victims were held for approximately four months and then released in Mali.
In early December 2012, BELMOKHTAR issued a video-taped statement in which he announced the formation of “The Signers in Blood” Battalion, identified the “emir” of the group as Ayman al- Zawahiri, the leader of al Qaeda, and called for fighting in Algeria and elsewhere to oppose Western influence. Several weeks later, BELMOKHTAR issued another video-taped statement in which he confirmed that the Battalion was “in [the] al Qaeda organization.”
On January 16, 2013, terrorists who were part of BELMOKHTAR’s Battalion attacked a Western-owned gas processing facility in Algeria, armed with AK-47s and rocket-propelled grenade launchers. The terrorists took numerous workers inside the facility hostage by force, including Algerian nationals and citizens of the United States, the United Kingdom, Japan, Norway, the Philippines, Colombia, Romania, and other nations, while other workers fled or hid inside the facility. The terrorists attached explosives to some of the hostages, wound detonation cord around their necks, and threatened to kill them. During the siege of the facility, numerous hostages, including three U.S. citizens, were killed.
On January 21, 2013, approximately one day after the siege ended, BELMOKHTAR appeared in an online video in which he claimed responsibility for the Battalion’s attack on the facility, on behalf of al Qaeda.
Three of the hostage-takers involved in the siege were arrested and detained by foreign authorities and later separately interviewed by U.S. law enforcement officers. The hostage-takers each acknowledged their membership in an al Qaeda group, of which BELMOKTAR was the “emir,” and further stated that they had received military training in another country prior to traveling to Algeria to conduct the attack in the name of al Qaeda.
The Amended Complaint charges BELMOKHTAR in eight Counts:
- Count One charges BELMOKHTAR with conspiring to provide material support to al Qaeda and AQIM, and carries a maximum penalty of life in prison;
- Count Two charges BELMOKHTAR with conspiring to take hostages, and carries a maximum penalty of life in prison or death;
- Count Three charges BELMOKHTAR with conspiring to discharge a firearm in furtherance of a crime of violence, and carries a maximum penalty of life in prison;
- Count Four charges BELMOKHTAR with discharging a firearm in furtherance of a crime of violence, and carries a maximum penalty of life in prison or death;
- Count Five charges BELMOKHTAR with conspiring to use and carry an explosive during the commission of a felony, and carries a maximum penalty of 20 years in prison;
- Count Six charges BELMOKHTAR with conspiring to kidnap internationally protected persons, and carries a maximum penalty of life in prison;
- Count Seven charges BELMOKHTAR with kidnapping of internationally protected persons, and carries a maximum penalty of life in prison; and
- Count Eight charges BELMOKHTAR with conspiring to use a weapon of mass destruction, and carries a maximum penalty of life in prison.
The investigation of BELMOHKTAR was the result of the close cooperative efforts of the United States Attorney’s Office for the Southern District of New York and the New York-based Joint Terrorism Task Force of the FBI, which is comprised of FBI agents and members of the NYPD. Mr. Bharara thanked the Justice Department’s National Security Division, the U.S. Department of Justice Office of International Affairs, the FBI’s International Operations Division, and the U.S. Department of State for their assistance, as well as the international law enforcement partners involved in this investigation.
The United States Department of State, through the Rewards for Justice Program, is offering a $5 million reward for information leading to the location of BELMOKHTAR. Please see the Rewards for Justice website for further details: http://www.rewardsforjustice.net.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Glen Kopp, Anna Skotko, and Shane Stansbury are in charge of the prosecutions, with assistance from Trial Attorney Stephen Ponticiello of the Counterterrorism Section of the Justice Department’s National Security Division.
The charges contained in the Amended Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Mokhtar Belmokhtar Amended Complaint
Camp Verde Man Sentenced to 15 Years for Violent AssaultRead the Press Release
PHOENIX, Ariz. – On July 17, 2013, Rosalio Perez Gutierrez, Jr., 26, of Camp Verde, Arizona, was sentenced by U.S. District Judge James A. Teilborg to 15 years imprisonment.
Gutierrez pleaded guilty on May 6, 2013 to the charge of Kidnapping, which involved an assault that occurred on March 26, 2012. After becoming angry during a domestic dispute, Gutierrez chased after another man who was walking down the street and wrestled him to the ground. While the victim was on the ground, Gutierrez held him down, pulled out a knife and began stabbing him multiple times in the head and arms. The victim sustained serious and life threatening injuries as a result of the assault. The kidnapping and related attack occurred on the Yavapai Apache Indian Reservation.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Yavapai Apache Police Department. The prosecution was handled by Dimitra H. Sampson, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-12-8190-PCT-JAT
RELEASE NUMBER: 2013-055_Gutierrez
# # #For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
California Man Sentenced to 960 Months for Producing<br /> Child Pornography Involving Two Young Virginia GirlsRead the Press Release
John Stuart Dowell, 47, of Santa Cruz, Calif., was sentenced late yesterday in Harrisonburg, Va., to serve 960 months in prison, followed by a lifetime of supervised release, for producing child pornography.
The sentence was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Western District of Virginia Timothy J. Heaphy.
Dowell was sentenced by U.S. District Judge Michael Urbanski in the Western District of Virginia.
In October 2012, Dowell pleaded guilty to 12 counts of using a minor to engage in sexually explicit conduct for the purpose of producing visual depictions of that conduct and one count of transportation of child pornography.According to a statement of facts entered into the record by the government and agreed to by the defendant, Dowell admitted that in late 2010 and early 2011 he was staying at a residence in Frederick County, Va. While staying at the home, Dowell repeatedly sexually abused a 3-year-old girl and filmed the abuse. A computer forensic examination further revealed that Dowell, in separate incidents, produced two videos of a 5-year-old female engaging in sexually explicit conduct. According to testimony provided at the sentencing hearing, Dowell also had a collection exceeding 70,000 images and videos of other child pornography and child erotica.
The investigation of the case was conducted by the Northern Virginia-District of Columbia Internet Crimes Against Children Task Force, with assistance from the FBI, the Department of Homeland Security’s Immigration and Customs Enforcement, and the San Jose, Calif., Police Department, as well as Danish law enforcement officers and Interpol. The High Tech Investigative Unit from the Department of Justice’s Child Exploitation and Obscenity Section (CEOS) conducted the forensic examination. Assistant U.S. Attorney Nancy S. Healey and CEOS Trial Attorney Darcy Katzin are prosecuting the case for the United States.
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 U.S. Attorneys’ offices and 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.California Man Sentenced to 960 Months for Producing Child Pornography Involving Two Young Virginia GirlsRead the Press Release
WASHINGTON – John Stuart Dowell, 47, of Santa Cruz, Calif., was sentenced late yesterday in Harrisonburg, Va., to serve 960 months in prison, followed by a lifetime of supervised release, for producing child pornography.
The sentence was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Western District of Virginia Timothy J. Heaphy.
Dowell was sentenced by U.S. District Judge Michael Urbanski in the Western District of Virginia.
In October 2012, Dowell pleaded guilty to 12 counts of using a minor to engage in sexually explicit conduct for the purpose of producing visual depictions of that conduct and one count of transportation of child pornography.
According to a statement of facts entered into the record by the government and agreed to by the defendant, Dowell admitted that in late 2010 and early 2011 he was staying at a residence in Frederick County, Va. While staying at the home, Dowell repeatedly sexually abused a 3-year-old girl and filmed the abuse. A computer forensic examination further revealed that Dowell, in separate incidents, produced two videos of a 5-year-old female engaging in sexually explicit conduct. According to testimony provided at the sentencing hearing, Dowell also had a collection exceeding 70,000 images and videos of other child pornography and child erotica.
The investigation of the case was conducted by the Northern Virginia-District of Columbia Internet Crimes Against Children Task Force, with assistance from the FBI, the Department of Homeland Security’s Immigration and Customs Enforcement, and the San Jose, Calif., Police Department, as well as Danish law enforcement officers and Interpol. The High Tech Investigative Unit from the Department of Justice’s Child Exploitation and Obscenity Section (CEOS) conducted the forensic examination. Assistant U.S. Attorney Nancy S. Healey and CEOS Trial Attorney Darcy Katzin are prosecuting the case for the United States.
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 U.S. Attorneys’ offices and 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.
13-819
DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.Bridgeport Man Charged with Federal Firearm OffensesRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that Rev. PAUL GOTTA, 55, of Bridgeport, formerly of East Windsor, was arrested today by the Bureau of Alcohol, Tobacco, Firearms and Explosives on federal firearm charges.
GOTTA is charged in a federal criminal complaint with aiding and abetting both the unlawful transport of a firearm in interstate commerce and the purchase of a handgun by a juvenile. The maximum penalty for these offenses is five years of imprisonment and a $250,000 fine.
GOTTA is detained pending a hearing that is scheduled for July 25 at 2:00 p.m. before United States Magistrate Judge Holly B. Fitzsimmons in Bridgeport.
Acting United States Attorney Daly stressed that an arrest is not evidence of guilt. Charges are only allegations, and that every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the East Windsor Police Department. The case is being prosecuted by Assistant United States Attorney Robert M. Spector and Special Assistant United States Attorney Natasha M. Dye.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Boonville Man Sentenced for Child PornRead the Press Release
Project Safe Childhood
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Boonville, Mo., man has been sentenced in federal court for attempting to distribute child pornography over the Internet.
Paul E. Durham, 34, of Boonville, was sentenced by U.S. Chief District Judge Fernando J. Gaitan on Thursday, July 18, 2013, to seven years in federal prison without parole.
On Feb. 11, 2013, Durham pleaded guilty to attempting to distribute child pornography over the Internet.
In December 2011, a detective with the Mid-Missouri Internet Crimes Task Force used an automated software program to browse and download suspected child pornography files through a peer-to-peer file-sharing network. Durham’s computer was identified as having child pornography available to share online. The file-sharing program on Durham’s computer allowed him to obtain child pornography from other users, and to share child pornography with others over the Internet.
Law enforcement officers executed a search warrant on Feb. 2, 2012, at the home of Durham’s mother, where he resided. They seized a laptop computer and an external hard drive. During an examination of the contents of the computer media, examiners found at least 52 images of child pornography and 17 movies of child pornography. There were images and video depicting prepubescent children engaged in sexual acts with adults. One video depicted a young girl engaged in bestiality. Some of the material depicted children engaged in sadistic or masochistic conduct.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Boone County, Mo., Sheriff’s Department, the Cooper County, Mo., Sheriff’s Department, the FBI and the Mid-Missouri Internet Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Belcourt Man Sentenced for Sexual AbuseRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on July 19, 2013, Nodin J. Azure, 25, Belcourt, N.D., was sentenced by U.S. District Judge Daniel L. Hovland on a charge of sexual abuse. Azure pleaded guilty to the charge on Jan. 23, 2013.
Judge Hovland sentenced Azure to five years’ and 10 months’ imprisonment to be followed by five years of supervised release. He was ordered to pay a $100 special assessment to the Crime Victim’s Fund and to pay restitution in the amount of $3,136.41. Azure was also ordered to register as a sex offender.
On May 24, 2011, Azure went into a bedroom where a woman was sleeping and proceeded to have sexual intercourse with her. When the victim awoke, she pushed Azure off of her, fled the residence, and drove to the hospital. This offense occurred on the Turtle Mountain Indian Reservation.
The case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs – Turtle Mountain Agency.
Assistant U.S. Attorney Brandi Sasse Russell prosecuted the case.
Aide to Former Council Member Harry L. Thomas, Jr. Pleads Guilty to Charge Involving $110,000 Grant That Funded an Inaugural Ball-Sixth Person to Plead Guilty in Investigation of Misuse of Funds-Read the Press Release
WASHINGTON – Ayawna Webster, who was an aide and chief of staff for former District of Columbia Council Member Harry L. Thomas, Jr., pled guilty today to a criminal tax charge for her role in channeling $110,000 in youth grant funds used to pay for an inaugural ball.
The guilty plea, which took place in the U.S. District Court for the District of Columbia, was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation.
Webster, 36, of Washington, D.C., pled guilty to attempting to interfere with the administration of the Internal Revenue Service laws. The Honorable John D. Bates scheduled sentencing for Nov. 1, 2013. The charge carries a maximum statutory sentence of three years in prison and a fine of up to $250,000. Under federal sentencing guidelines, the parties have agreed that the likely range is up to six months of incarceration and a fine of $1,000 to $10,000.
Webster is the sixth person to plead guilty to charges in an ongoing investigation into activities involving former Council Member Thomas. Thomas pled guilty last year to charges stemming from a scheme in which he used more than $350,000 in taxpayers’ money that was earmarked for the arts, youth recreation, and summer programs for his own personal benefit, including to pay for vehicles, clothing and trips. He resigned as a condition of his plea agreement and is now serving a 38-month prison sentence.
The others who have pled guilty include James Garvin and Marshall D. Banks, leaders of one of the non-profits used in the scheme. Both men, from the Langston in the 21st Century Foundation, pled guilty to misprision of a felony, a charge holding them accountable for failing to report and concealing the misappropriation of $392,000 in government grants. Additionally, Danita C. Doleman, the president of Youth Technology Institute, pled guilty to filing a false return in connection with her assistance in funneling public money to pay for the 51st State Inaugural Ball. Finally, Millicent D. West, the former director and chief executive officer of a non-profit organization that promotes youth opportunities, pled guilty to a criminal tax charge for her role in channeling the youth grant funds to pay for the ball.
Garvin and Banks were sentenced to three years of supervised probation, 80 hours of community service, and ordered to pay full restitution. Doleman and West are awaiting sentencing.
“Today Ayawna Webster became the sixth person to plead guilty as part of the investigation of her former boss, Council Member Harry Thomas, Jr.,” said U.S. Attorney Machen. “Her guilty plea is another reminder of the foolishness of going along with criminal schemes to placate corrupt public officials. This investigation is continuing.”
“Ms. Webster failed to report the illegal use of public funds, causing money dedicated to District of Columbia youth to be diverted to a single person for their own benefit,” said Assistant Director in Charge Parlave. “This plea, along with that of others who helped to conceal this scheme, shows that those who commit corruption, as well as those who allow it, will be held accountable for their actions.”
“IRS Criminal Investigation is committed to working with our law enforcement partners to combat public corruption,” said Special Agent in Charge Kelly. “Ms. Webster's plea today is a reminder to all that any abuse of the public trust is a serious matter and those violating that trust will be held accountable.”
Webster worked from January 2007 until December 2010 as Thomas’s director of constituent services. In January 2011, he promoted her to be his chief of staff. In addition to her work duties, Webster was the president of a local chapter of a political organization.
Thomas, who took office in January 2007 as the Ward 5 representative, served during his first term as Chair of the Council’s Committee on Libraries, Parks, Recreation and Planning, which involved oversight responsibility for the D.C. Department of Parks and Recreation. In that role, he worked with a non-profit public-private partnership that provided resources and developed programs to benefit children and youth in the District of Columbia.
The partnership was primarily funded by the District of Columbia government through funds designated by the Mayor and Council for particular youth-related purposes. The partnership provided grants to organizations for programs tailored for children and youth.
The charge against Webster deals mostly with her role in the 51st State Inaugural Ball, held on Jan. 20, 2009 in the Wilson Building. Thomas was closely involved in the planning. He had sought to host the event, but was prohibited from doing so. He then asked Webster if her political organization would serve as the host. She agreed, and she then organized the event, including booking entertainment and contracting with caterers, janitorial services and decoration providers, at Thomas’s direction.
The ball was an adult, formal, black-tie event open to members of the public who had purchased tickets for $51 apiece. Webster tried to get a liquor license for the ball, but the request was denied because of its location at the Wilson Building. Before the event occurred, Webster knew that ticket sales were not generating enough money to cover costs. As the event approached, Thomas assured Webster that she would get the funds to pay for the ball. However, after the event, she was unable to pay vendors. Thomas then directed Webster to contact a staff member, who was director of the Committee on Libraries, Parks, Recreation and Planning.
On Jan. 29, 2009, this staff member submitted budget paperwork to the public-private partnership seeking a grant of $110,000 for Webster’s political organization that would fund a “youth/young adult inauguration celebration.” The public-private partnership requested that Webster’s organization complete a tax form to enable check processing. At the direction of the staff member, Webster subsequently completed a tax form, backdated to Jan. 4, 2009, that falsely listed her organization’s name as “DC Young America.”
The grant recipient eventually was changed to the Youth Technology Institute, another non-profit, and new paperwork was submitted leading to the release of the funds.
In truth, the Youth Technology Institute immediately forwarded nearly the entire amount to Webster’s political organization. In addition to paying expenses for the inaugural ball, Webster received permission from Thomas to use some of the grant funds for other purposes, including expenses she incurred while traveling on behalf of her political organization. Also, funds were used to pay a vendor that supplied services to another of Thomas’s events.
In her plea, Webster also admitted failing to report her organization’s political activity. During a hearing in February 2010 of the District of Columbia Office of Campaign Finance, for example, she testified that the organization did not have any financial activity during the time period in which it actually obtained $104,500 for expenses associated with the inaugural ball.
Also, for the fiscal year ending Sept. 30, 2009, Webster never filed federal or District of Columbia tax returns on behalf of the organization.
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director in Charge Parlave and Special Agent in Charge Kelly praised the work of the investigators from the FBI’s Washington Field Office and IRS-CI who worked on the case. They also acknowledged the efforts of those who worked on the case form the U.S. Attorney’s Office, including Criminal Investigators Matthew Kutz, Mark Crawford and Melissa Matthews; Paralegal Specialists Tasha Harris, Diane Hayes, Shanna Hays, Lenisse Edloe and Monica Johnson; Legal Assistant Krishawn Graham, and former Assistant U.S. Attorney Bridget Fitzpatrick. Finally, they commended the work of Assistant U.S. Attorneys Jonathan W. Haray, David Johnson, and James E. Smith, who are prosecuting the matter.
13-252Abilene, Texas, Resident Sentenced to 37 Months in Federal Prison for Failing to Register as A Sex OffenderRead the Press Release
LUBBOCK, Texas — John Brandon Rice, 25, most recently a resident of Abilene, Texas, was sentenced this morning by U.S. District Judge Sam R. Cummings to 37 months in federal prison, following his guilty plea in April 2013 to one count of failing to register as a sex offender, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, in January 2009, Rice was sentenced in California for the felony sex offense of unlawful sexual intercourse and was sentenced to a three-year term of probation with a condition that he must serve 180 days in jail. In May 2010, the probated sentence was terminated and a state prison term of 32 months was imposed. As a result of this conviction, Rice was required under California law to register as a sex offender for life.
In June 2012, Rice began residing in Abilene and working as a landscaper and for a roofing business. Rice admits that he knowingly failed to register, and update his registration as a sex offender because he had an outstanding parole warrant form California and he did not want them to know where he was. Under the Sex Offender Registration and Notification Act (SORNA), persons who are required to register as sex offenders are required to register within three days of moving from one state to another.
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 U.S. Marshals Service. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Thursday 18 July 2013
Wheeling Man Sentenced to Thirteen Years for Distribution of PainkillersRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
Six Others Sentenced in Federal Court
WHEELING, WEST VIRGINIA - Three of the defendants in a major tri-state drug trafficking investigation were among seven people who were sentenced in Federal Court in Wheeling.
According to United States Attorney William J. Ihlenfeld, II, DEANDRE SCOTT ESTELLE, age 43, of Wheeling, was sentenced to 165 months imprisonment to be followed by three years of supervised release for “Conspiracy to Distribute Schedule I and Schedule II Controlled Substances.” ESTELLE was remanded to the custody of the United States Marshal pending designation to a Federal institution.
ROBIN E. RUSK, age 27, of Wheeling, was sentenced to 41 months imprisonment to be followed by three years of supervised release for “Conspiracy to Distribute Schedule I and Schedule II Controlled Substances.” RUSK, who is free on bond, will self-report to the designated Federal institution.
JENNY E. KOTA, age 22, of Wheeling, was sentenced to 3 years probation for “Conspiracy to Distribute Schedule I and Schedule II Controlled Substances.”
ESTELLE, RUSK, and KOTA were among 29 people who were charged in an investigation that included extensive surveillance, controlled purchases of narcotics, executions of search warrants, and seizures of narcotics, automobiles, and United States Currency.
These cases were prosecuted by Assistant United States Attorney Randolph J. Bernard and was investigated by the Ohio Valley Drug Task Force, which includes officers and agents from the Wheeling Police Department, the Ohio County Sheriff’s Department, and the Drug Enforcement Administration. Substantial assistance was provided by the Hancock-Brooke -Weirton Drug Task Force, which is made up of Weirton Police Officers, Hancock County Sheriff’s Deputies, and DEA Agents.
The following criminal defendants were also sentenced in Federal Court:
TONICA MITCHELL, age 28, formerly of Martins Ferry, Ohio, was sentenced to 37 months imprisonment to be followed by three years of supervised release for the “Conspiracy to Engage in Interstate Travel in Aid of a Racketeering Enterprise.” MITCHELL, who is free on bond, will self- report to the designated Federal institution.
ANTON DRAKE, age 32, of Wheeling, was sentenced to 24 months imprisonment to be followed by three years of supervised release, for the “Distribution of Cocaine” in Benwood, West Virginia. DRAKE was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The Mitchell and Drake cases were prosecuted by Assistant United States Attorney John C. Parr and investigated by the Ohio Valley Drug & Violent Crime Task Force.
ERICA MORRIS HERCULES, age 29, of Wheeling, was sentenced to 18 months imprisonment to be followed by three years of supervised release for “Aiding and Abetting a Prohibited Person in the Possession of a Firearm.” HERCULES was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The Hercules case was prosecuted by Assistant United States Attorney Stephen L. Vogrin and was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives along with the Wheeling Police Department.
JEFFREY BERESFORD, age 53, of Cameron, West Virginia, was sentenced to one year probation for the “Falsification of Union Records” from April of 2008 to January of 2010 by willfully falsifying his Plumbers ALF-CIO Local Union mileage logs. BERESFORD was also order to make restitution in the amount of $4,507.75 to the Union.
The Beresford case was prosecuted by Assistant United States Attorney David J. Perri and was investigated by the United States Department of Labor-Office of Labor Management Standards.
Webster Parish Accountant Sentenced for FraudRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that Murlin D. Graham, 37, of Bossier City, La., was sentenced by U.S. District Judge Donald E. Walter to 36 months in prison and three years of supervised release. He was also ordered to pay $582,333 in restitution and forfeit a Stingray speedboat and travel trailer. He pleaded guilty on April 16, 2013.According to evidence presented at the guilty plea, Graham created “shell companies” with names similar to those that did business with CW&W Contractors Inc., which is where he worked as an accountant. The “shell” companies had bank accounts but provided no services. The “shell” company accounts were solely under Graham’s control. Graham caused CW&W to make payments to his “shell” companies rather than to CW&W’s actual customers on multiple occasions for almost two years. As a result of his fraudulent conduct, Graham stole $582,333 from CW&W.
“The defendant in this case sought to hide his theft but was ultimately brought to justice,” Finley stated. “Through his actions, this trusted employee deprived his employer of business income and cost himself time in federal prison. We will continue to prosecute cases like this to the fullest extent of the law.”
“This case is another example of local and federal authorities working together to achieve a common goal of bringing justice to the citizens of Webster Parish,” said Gary Sexton, Webster Parish Sheriff.
The FBI and the Webster Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Cytheria Jernigan prosecuted the case.
Virginia, Minnesota, Felon Sentenced for Possessing A .38-caliber RevolverRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 49-year-old felon from the northern Minnesota community of Virginia was sentenced for possessing a .38-caliber revolver. United States District Court Judge Patrick J. Schiltz sentenced John Carl Pape to 180 months in prison on one count of being a felon in possession of a firearm. Pape was indicted on October 15, 2012, and pleaded guilty on January 31, 2013.
In his plea agreement, Pape admitted possessing the Smith & Wesson, five-shot revolver on May 6, 2012. On that day, police received a complaint that two vehicles had been vandalized in a church parking lot in Eveleth, Minnesota. One of the victims stated that her purse was stolen, and that it contained the gun and credit cards, among other items. Later that day, Pape was questioned by authorities and admitted attempting to make purchases and withdrawals with the victim’s stolen credit card. During the subsequent execution of a search warrant at Pape’s residence on May 6 and 7, 2012, officers seized items linked to the theft, including the gun.
Because he is a felon, Pape is prohibited under federal law from possessing firearms at any time. His previous St. Louis County convictions include third-degree burglary (1991 and 2004), fifth-degree possession of drugs (2007 and 2008), and fifth-degree sale of marijuana (1998).Since at least three of Pape’s prior convictions constitute crimes of violence or major drug crimes, he was subject to the federal Armed Career Criminal Act if convicted in the current federal case. That act mandates a minimum of 15 years in federal prison.
This case was the result of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Thomas M. Hollenhorst.Veteran Sentenced to Two Years in Prison for Lying to Obtain Disability BenefitsRead the Press Release
Raleigh, North Carolina - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever sentenced ANTHONY PATRICK STANFORD, 39, of Fayetteville, NC, to 24 months in prison, followed by 3 years of supervised release, upon conviction for Making Material False Statements to the Department of Veterans Affairs (VA), in violation of Title 18, United States Code, Section 1001, and Making Material False Statements to the Social Security Administration (SSA), in violation of Title 18, United States Code, Section 1001. Chief Judge Dever further ordered STANFORD to pay restitution of $519,293.07 to the VA and $7,575.30 to the SSA.
U.S. Attorney, Thomas G. Walker stated, “This case sends a strong message that those who steal the limited, taxpayer funds set aside for our servicemen and women who have suffered catastrophic injuries, will pay a steep price for their crimes. This office commends the work of the VA and SSA for their hard work to achieve justice in this case.”
STANFORD served in the United States Army from February 1, 1996 to June 30, 2005. Upon completion of basic training, STANFORD was assigned as a laundry specialist, but was also engaged in marching, running and field activities, until 1999. In December of 2005, STANFORD underwent a joint evaluation during which he made various representations, including that he was unable to stand, walk, lift, or hold objects. STANFORD further represented that for most of his daily living activities, including feeding, dressing, bathing, and using the toilet, he required help from another person.
Based upon STANFORD’s representations to the VA physician, the VA found that STANFORD had suffered a 100% loss of use of both of his upper and lower extremities. The VA further found that STANFORD qualified for various forms of financial assistance from the VA, including “aid and attendance” benefits, automobile and adaptive equipment benefits, and specially adapted housing benefits. Among other benefits, STANFORD began to receive monthly compensation in excess of $7,000 in connection with his alleged losses. STANFORD received these benefits during the period between 2005 and 2012. In addition to his application for benefits with the VA, STANFORD also applied for and obtained disability benefits with the United States Social Security Administration (SSA). In total, STANFORD collected $521,003.07 from the VA, and another $7,575.30 from the SSA.
Although STANFORD collected monthly compensation payments and other benefits from the VA and the SSA under the pretense of a complete loss of use of his upper and lower extremities, STANFORD could, in fact, use his upper and lower extremities. STANFORD did not require assistance to feed himself, dress himself, bathe himself, or to use the toilet as claimed. STANFORD was not wheelchair bound, and in fact, could walk and drive a car. STANFORD also had the ability to pick up and carry objects, and to carry on meaningful physical labor. During the course of the scheme, STANFORD even took a trip to Disney World without the aid of a cane, walker, or wheelchair.
On March 16, 2011, STANFORD presented to a VA physician for a continuing evaluation of his physical condition. During the evaluation STANFORD falsely represented that he required help from another person for feeding, bathing, and use of the toilet. Additionally, on October 4, 2011, in Fayetteville, North Carolina, STANFORD presented himself before representatives of the SSA for a continuing disability review. During the course of the review, STANFORD falsely represented that he could not dress, bathe, take medicine, prepare meals, do chores, shop, walk, stand, or lift objects over two pounds, without assistance from another person. STANFORD subsequently admitted to these falsehoods and indicated that he exaggerated his conditions in connection with both reviews because if he had told the truth then his benefits would have been terminated.
In total, STANFORD improperly collected $521,003.07 from the VA, and another $7,575.30 from the VA. At sentencing, the court ordered STANFORD to repay the stolen funds as restitution. STANFORD’s future VA benefits have been garnished.
Investigation of this case was conducted by the Department of Veterans Affairs Office of the Inspector General, and the Social Security Administration Office of the Inspector General. Assistant United States Attorney William M. Gilmore represented the United States.
United States Settles Medicare Billing Fraud Lawsuit with Multi-Specialty Health Care Provider for $1 MillionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Thomas O’Donnell, Special Agent-in-Charge of the Department of Health and Human Services, Office of Inspector General (HHS-OIG), New York region, announced today that the United States has settled for $1 million a civil health care False Claims Act lawsuit it filed on March 5, 2013 in Manhattan federal court against PARK AVENUE MEDICAL ASSOCIATES, P.C., PARK AVENUE HEALTH CARE MANAGEMENT, LLC, and PARK AVENUE HEALTH CARE MANAGEMENT, INC. (collectively “PAMA”), affiliated companies in the business of providing multi-specialty medical services in New York. This settlement resolves a lawsuit alleging that PAMA billed Medicare for services purportedly provided to elderly, mentally ill patients that were not medically necessary, were not documented in the medical record, or failed otherwise to comply with Medicare rules and regulations. The settlement was approved today by U.S. District Court Judge Colleen McMahon.
Manhattan U.S. Attorney Preet Bharara said: “In these lean budget times, it’s especially important that federal dollars be reserved for Medicare’s prescribed purposes, and not lost to fraud or abuse by companies like Park Avenue Medical Associates. This Office will continue to work hard to protect the Medicare program and prevent taxpayers from paying for unnecessary services.”
HHS-OIG Special Agent-in-Charge Thomas O’Donnell said: “For over a dozen years, Park Avenue Medical Associates submitted fraudulent claims to pad their pockets at Medicare’s expense, a practice that will simply not be tolerated. Through this settlement, PAMA is owning up and paying the price for their misconduct.”
According to the allegations contained in the Complaint filed in March 2013 in Manhattan federal court:
PAMA directly employs physicians, nurses and other medical professionals who provide services to elderly patients at hospitals, including inpatient psychiatric facilities, nursing homes, and assisted living facilities, among other types of long-term care facilities. The patients and residents at these facilities suffer from various chronic health conditions, including Alzheimer’s disease, dementia, schizophrenia, psychosis, depression and anxiety. The doctors and nurses employed by PAMA receive a salary from PAMA, which contracts with the facilities. In addition to their regular salaries, psychiatrists and psychologists employed by PAMA receive bonuses based on how many services they provide and the level of reimbursement they generate for PAMA from government and other insurance providers, including Medicare.
Medicare prohibits payment for services that are not “reasonable and necessary” for the diagnosis or treatment of an illness or injury. Medicare also prohibits payment for any claim without adequate documentation substantiating the reasonableness and necessity of the services provided. In particular, Medicare does not cover psychotherapy services rendered to patients with Alzheimer’s disease or dementia unless the patient’s dementia is mild, the patient has the capacity to recall what occurred at the therapy from one session to the next, and that capacity is documented in the patient’s record. Psychotherapy services are not covered when dementia has produced a severe enough cognitive defect to prevent psychotherapy from being effective. In addition, Medicare provides that psychiatric diagnostic examinations are covered only once for each episode of illness or suspected illness in a patient.
In violation of Medicare policies, as well as its own policies, PAMA provided psychotherapy to patients who lacked the capacity to benefit from it due to severe dementia. In addition, PAMA billed for psychiatric evaluations that were duplicative, failed to comply with Medicare rules, and reflected a lack of coordination of care both among PAMA’s own psychiatrists, psychologists and nurses, and between PAMA’s employees and staff at the facilities at which PAMA performed services. In fact, PAMA billed Medicare for a far larger number of all of these services per psychiatrist and psychologist during the period 2001 through 2012 than any other provider with a similar patient population in the New York area.
In the settlement, PAMA admitted the following:
- In many instances, PAMA billed Medicare for psychiatric diagnostic examinations without demonstrating that they had adequately documented the patient’s medical and/or psychiatric history and/or mental status;
- In many instances, PAMA billed Medicare for multiple psychiatric diagnostic examinations after receiving multiple orders for such, but without demonstrating that the examinations complied with certain applicable Medicare rules, including those that allow for multiple examinations only when there is a demonstrated hiatus in the condition of the patient or the beginning of a new spell of illness; and
- In many instances, PAMA billed Medicare for psychotherapy services to patients who suffered from dementia or other cognitive disorders without demonstrating that the patients had the capacity to benefit from the psychotherapy.
As part of the settlement, PAMA also entered into a Corporate Integrity Agreement with the U.S. Department of Health and Human Services Office of Inspector General.
Mr. Bharara thanked the Department of Health and Human Services, Office of the Inspector General, for its assistance in this case.
This case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Heidi A. Wendel and Mara E. Trager are in charge of the case.
U.S. v. Park Ave Medical Associates, et al. Stipulation and Settlement
U.S. v. Park Ave Medical Associates, et al. ComplaintUnited States Reaches an Agreement with XTO Energy to Prevent Waste Spills from Natural Gas Exploration and ProductionRead the Press Release
The U.S. Environmental Protection Agency and the U.S. Department of Justice announced a settlement with XTO Energy Inc., a subsidiary of Exxon Mobil Corporation, to resolve an alleged violation of the Clean Water Act (CWA) related to the discharge of wastewater from XTO’s Penn Township, Lycoming County, Pa. facility used for the storage of wastewater generated by natural gas exploration, commonly known as fracking, and production.
The federal settlement requires that XTO pay a penalty of $100,000 to the United States and spend a federal government-estimated $20 million on a comprehensive plan to improve wastewater management practices to recycle, properly dispose of, and prevent spills of wastewater generated from natural gas exploration and production activities in Pennsylvania and West Virginia. Among other things, XTO must install a continuous, remote monitoring system for all of its permanent production located throughout Pennsylvania and West Virginia with alarms that will be triggered to alert operators immediately in the event of any future spills and implement a program to actively monitor interconnected wastewater storage tanks located throughout Pennsylvania and West Virginia.
The discharge was discovered by the Pennsylvania Department of Environmental Protection (PADEP) during an inspection of the Penn Township facility, where a PADEP inspector observed wastewater spilling from an open valve from a series of interconnected tanks. At the time, XTO stored wastewater generated from energy extraction activities conducted throughout Pennsylvania at its Penn Township facility and, at the time of the release, stored produced fluid from its operations in the area.
Pollutants from the release were found in a tributary of the Susquehanna River basin. EPA, in consultation with PADEP, conducted an investigation and determined that wastewater stored in the tanks at the Penn Township facility contained the same variety of pollutants, including chlorides, barium, strontium, and total dissolved solids, that were observed in those surface waters.“Today’s settlement holds XTO accountable for a previous violation of the Clean Water Act and requires operational changes and improved management practices to help ensure the safe and responsible handling of wastewater produced during natural gas exploration and production activities,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “The Justice Department is committed to ensuring that our natural resources are developed in an environmentally responsible manner.”
Under the settlement with the United States, the substantial improvements to XTO’s wastewater management are estimated by the federal government to reduce discharges of total dissolved solids by 264 million pounds over the course of the next three years. These reductions will occur in large part because XTO will increase wastewater recycling and will properly dispose of wastewaters generated by its natural gas activities across the mid-Atlantic region. In addition XTO will implement a region-wide program of operational best management practices which include: secondary containment for tanks used to store wastewater, improved standard operating procedures designed to reduce the risk of a spill, a prohibition on using pits or open-top tanks to store wastewater which will prevent air emissions, remote monitoring of tank volumes to prevent overfilling and spills, and proper signage on all tanks with safety information and a manned, 24-hour emergency phone number.
“The operational improvements required by today’s settlement will help to protect precious surface and drinking water resources in Pennsylvania and West Virginia,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “EPA continues to push for responsible development of domestic sources of energy and to insist that companies play by the rules that protect public health.”
“This consent decree establishes a program of best practices that should be a model for the industry and, if followed, will give a level of assurance to the people of the Commonwealth that their waters will be protected. This settlement is in the long-term best interest of the taxpayers, the industry, and our children,” stated Peter J. Smith, U.S. Attorney for the Middle District of Pennsylvania.
Untreated discharges of wastewaters from natural gas exploration and production activities typically contain high levels of total dissolved solids and other pollutants and can adversely impact fresh water aquatic life and drinking water quality.
The consent decree, lodged in the Middle District of Pennsylvania, is subject to a 30-day public comment period and court approval. The consent decree is available for review at www.justice.gov/enrd/Consent_Decrees.html
More information about the settlement:
http://www2.epa.gov/enforcement/xto-energy-inc-settlement
More information about EPA Region III’s activities related to natural gas extraction: http://www.epa.gov/region3/marcellus_shale/United States Reaches an Agreement with XTO Energy to Prevent Waste Spills from Natural Gas Exploration and ProductionRead the Press Release
WASHINGTON - The U.S. Environmental Protection Agency and the U.S. Department of Justice announced a settlement with XTO Energy Inc., a subsidiary of Exxon Mobil Corporation, to resolve an alleged violation of the Clean Water Act (CWA) related to the discharge of wastewater from XTO’s Penn Township, Lycoming County, Pa. facility used for the storage of wastewater generated by natural gas exploration, commonly known as fracking, and production.
The federal settlement requires that XTO pay a penalty of $100,000 to the United States and spend a federal government-estimated $20 million on a comprehensive plan to improve wastewater management practices to recycle, properly dispose of, and prevent spills of wastewater generated from natural gas exploration and production activities in Pennsylvania and West Virginia. Among other things, XTO must install a continuous, remote monitoring system for all of its permanent production located throughout Pennsylvania and West Virginia with alarms that will be triggered to alert operators immediately in the event of any future spills and implement a program to actively monitor interconnected wastewater storage tanks located throughout Pennsylvania and West Virginia.
The discharge was discovered by the Pennsylvania Department of Environmental Protection (PADEP) during an inspection of the Penn Township facility, where a PADEP inspector observed wastewater spilling from an open valve from a series of interconnected tanks. At the time, XTO stored wastewater generated from energy extraction activities conducted throughout Pennsylvania at its Penn Township facility and, at the time of the release, stored produced fluid from its operations in the area.
Pollutants from the release were found in a tributary of the Susquehanna River basin. EPA, in consultation with PADEP, conducted an investigation and determined that wastewater stored in the tanks at the Penn Township facility contained the same variety of pollutants, including chlorides, barium, strontium, and total dissolved solids, that were observed in those surface waters.
“Today’s settlement holds XTO accountable for a previous violation of the Clean Water Act and requires operational changes and improved management practices to help ensure the safe and responsible handling of wastewater produced during natural gas exploration and production activities,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “The Justice Department is committed to ensuring that our natural resources are developed in an environmentally responsible manner.”
Under the settlement with the United States, the substantial improvements to XTO’s wastewater management are estimated by the federal government to reduce discharges of total dissolved solids by 264 million pounds over the course of the next three years. These reductions will occur in large part because XTO will increase wastewater recycling and will properly dispose of wastewaters generated by its natural gas activities across the mid-Atlantic region. In addition XTO will implement a region-wide program of operational best management practices which include: secondary containment for tanks used to store wastewater, improved standard operating procedures designed to reduce the risk of a spill, a prohibition on using pits or open-top tanks to store wastewater which will prevent air emissions, remote monitoring of tank volumes to prevent overfilling and spills, and proper signage on all tanks with safety information and a manned, 24-hour emergency phone number.
“The operational improvements required by today’s settlement will help to protect precious surface and drinking water resources in Pennsylvania and West Virginia,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “EPA continues to push for responsible development of domestic sources of energy and to insist that companies play by the rules that protect public health.”
“This consent decree establishes a program of best practices that should be a model for the industry and, if followed, will give a level of assurance to the people of the Commonwealth that their waters will be protected. This settlement is in the long-term best interest of the taxpayers, the industry, and our children,” stated Peter J. Smith, U.S. Attorney for the Middle District of Pennsylvania.
Untreated discharges of wastewaters from natural gas exploration and production activities typically contain high levels of total dissolved solids and other pollutants and can adversely impact fresh water aquatic life and drinking water quality.
The consent decree, lodged in the Middle District of Pennsylvania, is subject to a 30-day public comment period and court approval. The consent decree is available for review at www.justice.gov/enrd/Consent_Decrees.htmlMore information about the settlement:
http://www2.epa.gov/enforcement/xto-energy-inc-settlementMore information about EPA Region III’s activities related to natural gas extraction: http://www.epa.gov/region3/marcellus_shale/
IF YOU HAVE QUESTIONS, PLEASE CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
US Army Sergeant Pleads Guilty in Georgia to Stealing <br /> Identity Information from US Army Computer SystemRead the Press Release
Ammie Brothers, 29, of Columbus, Ga., a sergeant in the U.S. Army, pleaded guilty today to unlawfully obtaining personal information from the U.S. Army’s Army Knowledge Online computer system.
The guilty plea was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney for the Eastern District of Virginia Neil H. MacBride; U.S. Attorney for the Middle District of Georgia Michael J. Moore; and Director Daniel T. Andrews of the U.S. Army Criminal Investigation Command’s Computer Crime Investigative Unit.
Brothers pleaded guilty before U. S. District Judge Clay Land in Columbus, Ga., to one count of unauthorized access to information from a U.S. Army computer system. She was charged on Feb. 14, 2013, in a five-count indictment returned by a federal grand jury in Alexandria, Va.
In a statement of facts filed with the plea agreement, Brothers admitted that between April 24, 2009, and Oct. 5, 2011, she repeatedly and intentionally accessed two victims’ Army Knowledge Online accounts, which contain personnel files for members of the armed services. Brothers initially gained access by calling the Army Knowledge Online help desk in the Eastern District of Virginia and providing the victims’ Social Security numbers and dates of birth in order to obtain temporary passwords.
When law enforcement searched Brothers’s home in Columbus, they recovered numerous documents printed from the Army Knowledge Online system that contained victims’ Social Security numbers, bank account numbers and employment history, including the Social Security number of one minor child. Brothers admitted to law enforcement that, in addition to illegally accessing the victims’ Army Knowledge Online accounts, she regularly harassed the victims by telephone and accessed several credit card accounts belonging to one victim, and in one case authorized charges without the victim’s knowledge or consent.
At sentencing, scheduled for Oct. 24, 2013, Brothers faces a maximum penalty of five years in prison.
This case was investigated by the Computer Crime Investigative Unit of U.S. Army Criminal Investigation Command.
The case is being prosecuted by Trial Attorney Peter V. Roman of the Justice Department’s Computer Crime and Intellectual Property Section, Assistant U.S. Attorney Lindsay Kelly of the Eastern District of Virginia and Assistant U.S. Attorney Crawford L. Seals of the Middle District of Georgia.US Army Sergeant Pleads Guilty in Georgia to Stealing Identity Information from US Army Computer SystemRead the Press Release
WASHINGTON – Ammie Brothers, 29, of Columbus, Ga., a sergeant in the U.S. Army, pleaded guilty today to unlawfully obtaining personal information from the U.S. Army’s Army Knowledge Online computer system.
The guilty plea was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney for the Eastern District of Virginia Neil H. MacBride; U.S. Attorney for the Middle District of Georgia Michael J. Moore; and Director Daniel T. Andrews of the U.S. Army Criminal Investigation Command’s Computer Crime Investigative Unit.
Brothers pleaded guilty before U. S. District Judge Clay Land in Columbus, Ga., to one count of unauthorized access to information from a U.S. Army computer system. She was charged on Feb. 14, 2013, in a five-count indictment returned by a federal grand jury in Alexandria, Va.
In a statement of facts filed with the plea agreement, Brothers admitted that between April 24, 2009, and Oct. 5, 2011, she repeatedly and intentionally accessed two victims’ Army Knowledge Online accounts, which contain personnel files for members of the armed services. Brothers initially gained access by calling the Army Knowledge Online help desk in the Eastern District of Virginia and providing the victims’ Social Security numbers and dates of birth in order to obtain temporary passwords.
When law enforcement searched Brothers’s home in Columbus, they recovered numerous documents printed from the Army Knowledge Online system that contained victims’ Social Security numbers, bank account numbers and employment history, including the Social Security number of one minor child. Brothers admitted to law enforcement that, in addition to illegally accessing the victims’ Army Knowledge Online accounts, she regularly harassed the victims by telephone and accessed several credit card accounts belonging to one victim, and in one case authorized charges without the victim’s knowledge or consent.
At sentencing, scheduled for Oct. 24, 2013, Brothers faces a maximum penalty of five years in prison.
This case was investigated by the Computer Crime Investigative Unit of U.S. Army Criminal Investigation Command.
The case is being prosecuted by Trial Attorney Peter V. Roman of the Justice Department’s Computer Crime and Intellectual Property Section, Assistant U.S. Attorney Lindsay Kelly of the Eastern District of Virginia and Assistant U.S. Attorney Crawford L. Seals of the Middle District of Georgia.
Inquiries regarding the case should be directed to The Office Of Public Affairs at 202-514-2007 or Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
U.S. Postal Service Letter Carrier Indicted for Allegedly Destroying MailRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence on Wednesday returned an indictment charging Matteo Morelli, 34, of Warwick, a U.S. Postal Service (USPS) letter carrier, with one count of delay or destruction of mail by a Postal Service officer or employee. It is alleged in court documents that Morelli discarded more than 1,000 pieces of mail that were addressed to individuals and business in East Greenwich and North Kingstown.
Morelli’s indictment was announced by United States Attorney Peter F. Neronha and Rafael Medina, Special Agent in Charge of the United States Postal Service, Office of Inspector General (USPS OIG), Northeast Area Field Office.
According to an affidavit in support of a criminal complaint filed previously with the court, in June 2013, the Postmaster for East Greenwich received complaints that mail sent via the U.S. Postal Service had not been delivered to intended recipients on routes assigned to Morelli. The Postmaster also received complaints of mail not reaching intended recipients along routes in North Kingstown assigned to Morelli.
According to the affidavit, following an interview with Morelli, USPS OIG agents discovered more than 1,000 pieces of mail allegedly discarded by Morelli inside a dumpster behind a school in Warwick.
Morelli is scheduled to be arraigned on the indictment on July 23, 2013.An indictment and a criminal complaint are merely allegations and are not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Delay or destruction of mail by a Postal Service officer or employee is punishable by up to 5 years in federal prison and up to 3 years of supervised release.
The case is being prosecuted by Assistant U.S. Attorney Zechariah Chafee
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]U.S. Attorney Barry Grissom to Speak at Event in Honor of ADARead the Press Release
HUTCHINSON, KAN. – U.S. Attorney Barry Grissom will speak tonight at an event in Hutchinson to honor the Americans With Disabilities Act.
Grissom will be the featured speaker at the Americans With Disabilities Act (ADA) celebration at 7 p.m. today at George Pyle Park, 100 E. Avenue B. The event is being sponsored by the Prairie Independent Living Resource Center, Inc.
“The ADA has opened millions of doors for people with disabilities in this nation,” Grissom said. “It has revolutionized the way people think about people with disabilities.”
The U.S. Justice Department works to achieve equal opportunity for people with disabilities by implementing and enforcing the Americans With Disabilities Act. For more information about the event contact Roger Frishenmeyer at 620-474-3600.
Two Grey Hills, N.M., Man Sentenced to Thirty-Seven Months in Federal Prison for Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Erick McDonald, 21, an enrolled member of the Navajo Nation who resides in Two Grey Hills, N.M., was sentenced yesterday afternoon to 37 months in federal prison followed by seven years of supervised release for his child sexual abuse conviction. McDonald also will be required to register as a sex offender.
McDonald pleaded guilty on March 4, 2013, to a two-count information charging him with abusive sexual contact with a six-year-old Indian child and a 12-year-old Indian child on Sept. 19, 2012. In entering his guilty plea, McDonald admitted that he intentionally touched the genitals and other body parts of the two victims. Court records reflect that McDonald’s unlawful conduct occurred in a residence on the Navajo Indian Reservation.
This case was investigated by the Albuquerque and the Farmington offices of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
Two from Waubay Area Indicted on Assault and Robbery ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that two individuals from the Waubay, South Dakota, area have been indicted by a federal grand jury for Assault with Intent to Commit Murder, Assault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, and Robbery.
Beverly A. Gill, age 43, and Tyler G. Sullivan, age 29, were indicted by a federal grand jury on June 18, 2013. Gill appeared before U.S. Magistrate Judge William Gerdes on June 24, 2013, and Sullivan appeared before Judge Gerdes on July 16, 2013. Both pled not guilty to the indictment.
The maximum penalty upon conviction is up to 20 years in custody, a $250,000 fine, or both; 3 years of supervised release and an additional 2 years upon revocation; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely an accusation and Gill and Sullivan are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Day County Sheriff’s Office and the Federal Bureau of Investigation. Assistant U.S. Attorney Thomas J. Wright is prosecuting the case.
Gill was released on bond, and Sullivan was remanded to the custody of the U.S. Marshal. A trial date has not been set.Two Area Women Sentenced for Filing False Federal Income Tax ReturnsRead the Press Release
Gemarian Douglas, 38, of Alorton, Illinois, and Anaya Bluiett, 26, of St. Louis, Missouri, were each sentenced for the offense of Filing False Federal Income Tax Returns, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Gemarian Douglas was sentenced to serve 2 months in prison, 1 year supervised release, pay a $5,000 fine and $4,911 in restitution. Anaya Bluiett was sentenced to serve 6 months home detention and pay a $1,000 fine as a condition of 5 years of probation and to pay restitution totaling $10,405.
Anaya Bluiett had false and fraudulent 2008, 2009 and 2010 federal income tax returns prepared by Prime Time Tax Services. Gemarian Douglas had filed a false and fraudulent 2009 federal income tax return. Additionally she had filed a false 2001 and 2002 federal tax return. Delaun Leflore and Carey Herron owned and operated Prime Time Tax Services (PTTS) located in Shiloh, Illinois. During the 2008-2011 filing seasons, Leflore and Herron used electronic software to prepare and file tax returns and they typically applied for refund anticipation loans. Leflore and Herron conspired together and with their clients to prepare false tax returns and claim fraudulent tax refunds. To accomplish this scheme, Leflore and Herron created false and fraudulent Schedule C income and expenses. The purpose of creating the false income was to maximize the earned income credit and other credits which generated large tax refunds. While meeting with their clients, Leflore and Herron discussed how to receive more money back by creating self-employment income. The clients agreed to participate in the scheme in order to receive a larger tax refund. Typically, the clients were referred to Leflore and Herron and visited the tax preparation business knowing they would file fraudulent tax returns. As part of the scheme, the clients were required to pay an extra cash fee to Leflore or Herron from the tax refund received. This amount was generally $500 in cash. This amount was in addition to the tax preparation fee which was automatically deducted from the tax refund by the bank processing the refund anticipation loan (RAL). Following the receipt of the RAL check, Leflore, Herron, or another representative of PTTS escorted the clients to a local check-cashing business named Belleville Quick Stop located in Belleville, Illinois. After the client cashed the RAL check, the client immediately gave the $500 in cash to Leflore, Herron, or another representative of Prime Time. Leflore and Herrron have already been prosecuted and are serving their prison sentences.
The prosecution is the result of an investigation conducted by the Internal Revenue Service/Criminal Investigations, and was handled by Assistant U.S. Attorney Norman R. Smith.
To report criminal tax fraud, call I.R.S. Criminal Investigations at (618) 622-2160, or send the information to the Internal Revenue Service, Fresno, CA 93888.
Three Involved in the Kidnapping and Murder of Atlantic City Woman Plead GuiltyRead the Press Release
CAMDEN, N.J. – Three Atlantic City, N.J., residents today admitted their roles in the kidnapping and death of a 20-year-old Atlantic City woman, U.S. Attorney Paul J. Fishman announced.
Shameria Smith, 26, Aziz Sanders, 20, and Deshawn Hicks, 21, each pleaded guilty before U.S. District Judge Joseph H. Rodriguez to separate, one-count informations charging them with use of a firearm, and aiding and abetting the use of a firearm, in furtherance of a crime of violence – specifically, the Hobbs Act robbery and kidnapping that resulted in the death of Nadirah Ruffin.
According to documents filed in this case and statements made in court:On March 23, 2011, D.H. met with Isiah Ruffin (no relation to the victim) in the courtyard area of a housing complex on North Maryland Avenue, a section of Atlantic City known as “Back Maryland,” to talk to Isiah Ruffin about a dispute between Isiah Ruffin and Victim One. After a brief conversation, D.H. viciously assaulted Isiah Ruffin, knocking Isiah Ruffin unconscious and robbing him of cash. When Isiah Ruffin regained consciousness, D.H. assaulted Isiah Ruffin again. As a result of the assault, Isiah Ruffin was treated at the Atlantic City Medical Center for a possible concussion and facial lacerations. After Isiah Ruffin was released from the hospital, Smith and Sanders visited Isiah Ruffin, during which time Isiah Ruffin told Smith that D.H. had assaulted him.
To retaliate, Smith planned to enter Victim One’s house and assault and rob Victim One of illegal drugs and money. Sanders agreed to help Smith execute her plan and recruited Hicks to participate. Smith supplied the gun, duct-tape and handcuffs.
On March 26, 2011, Smith, Sanders, and Hicks entered Victim One’s house and duct-taped Victim One and four other victims, including Nadirah Ruffin, who were present. While in the house, Sanders and Hicks took money from Victim One, some of which Victim One had earned from selling illegal drugs. They took money from another victim, as well as marijuana that the victim was planning to sell. Sanders and Hicks admitted to taking more than $500 dollars and 50 bags of marijuana from the house.
During the robbery, Nadirah Ruffin recognized Smith’s voice. Smith ordered Sanders to punch Nadirah Ruffin. After Sanders hit Nadirah Ruffin, Smith punched her because she did not think Sanders had hit her hard enough. As the three defendants were leaving the residence, Smith told Sanders and Hicks to take Nadirah Ruffin from the residence. Smith, Sanders and Hicks then placed Nadirah Ruffin into a green van. They drove to the Clementon area and eventually to Philadelphia. Smith said that because she was a mother she could not kill Nadirah Ruffin. Smith placed the gun near Sanders and told him that they were not leaving until someone else killed Nadirah Ruffin. Sanders and Hicks took Nadirah Ruffin to the banks of the Schuylkill River, where Sanders shot her in the head, killing her. Her body was dumped in the river.
The charges to which Smith, Sander and Hicks pleaded guilty carry a maximum potential penalty of life imprisonment and a fine of $250,000. Sentencing for Smith and Sanders is scheduled for Oct. 22, 2013, and Hicks is scheduled for Oct. 23, 2013.
Other defendants
Henry Ruffin and Ronnie Ruffin (no relation to Nadirah Ruffin) both pleaded guilty to failing to tell FBI special agents who interviewed them that they know Smith, Sanders and Hicks were involved in the home invasion and kidnapping. Henry Ruffin is scheduled to be sentenced Sept. 17, 2013, and Ronnie Ruffin is scheduled to be sentenced Sept. 19, 2013.
On April 3, 2012, Isiah Ruffin, pleaded guilty to providing false statements to investigators about the home invasion and kidnapping. He is scheduled to be sentenced Oct. 23, 2013.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; the Atlantic County Prosecutor’s Office and the Atlantic City Police Department, for the investigation leading to the guilty pleas.
The government is represented by Assistant U.S. Attorneys Jason M. Richardson and Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden, assisted by Assistant U.S. Attorney David Feder of the U.S. Attorney’s Office Appeals Division in Newark, and Mark Coyne, Chief of the Appeals Division.
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Defense counsel:
Smith: Christopher O’Malley, Esq.
Sanders: Edward Borden Esq. and Carl J. Herman Esq.
Hicks: Michael Huff Esq. and David Glazer Esq.
Henry Ruffin: Richard Sparaco Esq.
Ronnie Ruffin: Stanley O. King Esq.
Isiah Ruffin: J. Michael Farrell Esq.Smith, Shameria Information
Sanders, Aziz Information
Hicks, Deshawn InformationThree Illegal Aliens Sentenced This Week for Violating Deportation OrdersRead the Press Release
ALEXANDRIA/LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that three illegal aliens were sentenced this week in U.S. District Court for violating deportation orders multiple times.
EL SALVADOR CITIZEN SENTENCED FOR ORDER NON-COMPLIANCE
Manuel Rivas, 45, of El Salvador, was sentenced Wednesday by U.S. District Judge Dee D. Drell in Alexandria, to six years in prison and three years of supervised release for two counts of resisting his deportation. According to evidence presented at the trial, Immigration and Customs Enforcement agents arrested Rivas on July 11, 2011, and he was issued an administrative order for removal because he was an alien convicted of a felony. Rivas refused to fill out the necessary paperwork for his request for travel documentation from El Salvador on July 3, 2012 and Aug. 16, 2012. A jury found Rivas guilty on April 5, 2013 after a two-day trial.
The Immigration and Customs Enforcement - Enforcement and Removal Operations conducted the investigation. Assistant U.S. Attorney Earl M. Campbell and Special Assistant U.S. Attorney Seiji Ohashi prosecuted the case.
MEXICAN CITIZEN SENTENCED TO 39 MONTHS IN PRISON FOR RE-ENTRY
Gilberto Del Rio Herrera, 40, of Mexico, was sentenced Monday by U.S. District Judge Richard T. Haik in Lafayette, to 21 months in prison for illegal re-entry into the United States and 18 months in prison due to revocation of probation for an illegal re-entry charge from the Southern District of Texas, Houston Division. According to evidence presented at the guilty plea, Louisiana State Police arrested Herrera on Dec. 2, 2012 after a vehicle accident took place in Lafayette Parish. He was charged with hit and run driving, driving while intoxicated, improper lane usage, and possession of an alcoholic beverage in an open container. A criminal history check conducted by the Louisiana State Police revealed that Herrera had been previously deported to Mexico and had last entered the United States in August of 2012 at Tijuana, Mexico. It was also discovered that Herrera had been deported to Mexico four times and had a criminal record. His record included a 1999 conviction for possession of cocaine in Harris County Texas.
The U.S. Immigration and Customs Enforcement (ICE), Louisiana State Police and the Lafayette Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel prosecuted the case.
MEXICAN CITIZEN RECEIVES 16 MONTHS IN PRISON FOR ILLEGAL RE-ENTRY
David Cruz-Perez, 45, of Mexico, was sentenced Monday by U.S. District Judge Richard T. Haik in Lafayette, to 16 months in prison for illegal re-entry into the United States. According to evidence presented at the guilty plea, the Iberia Parish Sheriff’s Office arrested Cruz-Perez for aggravated second degree battery on Sept. 29, 2012. The defendant has a criminal history and was previously removed on Aug. 19, 2004. He pleaded guilty to the illegal re-entry charge on March 11, 2013.
The U.S. Immigration and Customs Enforcement (ICE) and the Iberia Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.
South Jersey Doctor Sentenced to Two Years in Prison for Fraud Scheme Involving Home Health Care for Elderly PatientsRead the Press Release
Doctor Made More Than Half a Million Dollars Illegally
TRENTON, N.J. – A doctor who was the owner and founder of Visiting Physicians of South Jersey (VPA) – a Hammonton, N.J., provider of home-based physician services for seniors – was sentenced today to 24 months in prison for charging lengthy visits to elderly patients that they did not receive, U.S. Attorney Paul J. Fishman announced.
Lori Reaves, 52, of Waterford Works, N.J., previously pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging her with one count of health care fraud. Judge Wolfson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Reaves admitted lying in Medicare billings about the amount of face-to-face time she spent with patients, which led to her receiving at least $511,068 in criminal profits. Reaves was the highest billing home care provider among the more than 24,000 doctors in New Jersey from Jan. 1, 2008, through Oct. 14, 2011.
VPA provided home-based physician health care for elderly and homebound patients in New Jersey, offering services throughout South Jersey. As part of her responsibilities at VPA, Reaves was responsible for Medicare billings as a Medicare-approved provider. The claim submitted by the health care provider requires a physician to state a diagnosis and provide a procedure code – called a Current Procedural Technology (CPT) code – identifying services rendered. Medicare regulations require that each provider certify that the services rendered were medically necessary and were furnished by that provider. A warning at the bottom of the form specifically states that any false claims or statements in relation to the submission of a claim for reimbursement are prosecutable under federal or state law.
In most instances during the relevant time period, Reaves submitted forms that falsely claimed she had provided prolonged service visits to her patients in order to induce Medicare to make payments to her that were significantly higher than the payments she should have received. She routinely billed Medicare using codes that would have required her – under Medicare regulations and depending on the corresponding service – to spend between 60 and 150 minutes with a patient. Many of the claims Reaves submitted would have required her to spend a minimum of 2.5 hours of face-to-face time with her elderly clients, when she actually spent far less. As a result, Medicare reimbursed Reaves more than $511,068 for the fraudulent prolonged service visits Reaves claimed to have made.
In addition to the prison term, Judge Wolfson sentenced Reaves to three years of supervised release. In addition to Reaves forfeiture of $511,068, Judge Wolfson ordered Reaves to pay restitution of $511,068 and pay a fine of $5,000.
U.S. Attorney Fishman credited special agents of the FBI in Newark, under the direction of Special Agent in Charge Aaron T. Ford, and special agents of the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Tom F. O’Donnell of the New York Regional Office, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorneys Deborah J. Gannett and R. David Walk Jr. of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
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Defense counsel: Rocco Cipparone Jr. Esq., Haddon Heights, N.J.Slidell Tax Preparer, John Labee, Charged in 13-count IndictmentRead the Press Release
JOHN LABEE, age 35, a resident of Slidell, Louisiana, was charged today in a thirteen-count Indictment with nine counts of assisting in the preparation of false tax documents, two counts of making false statements on his own tax returns, one count of attempted mail fraud, and one count of lying to a federal Grand Jury, announced United States Attorney Dana J. Boente.
According to the Indictment, beginning in about 2005, LABEE owned and operated two tax preparation businesses in Slidell, IP Financial Services, Inc. and Milennium [sic] Bookkeeping Services. An investigation revealed between tax years 2008 and 2010, LABEE regularly claimed false deductions and claimed false federal tax withholdings for his clients to generate large refunds to which they were not entitled. LABEE also failed to report his income from his tax preparation business and falsified the amount of federal tax withholdings on his own tax returns that resulted in LABEE receiving refunds to which he was not entitled.
The Indictment also alleges that LABEE filed a loss claim to the Gulf Coast Claims Facility (GCCF) seeking over $958,000 in compensation for losses he claimed IP Financial Services suffered as a result of the Deepwater Horizon oil spill incident. To support his claim, LABEE submitted false tax records that were not true and had never been filed with the IRS.
Lastly, the Indictment alleges that LABEE lied when he testified under oath on
March 14, 2013, before the Grand Jury that he had not prepared any tax returns in 2013 other than his own. The Indictment alleges that LABEE had prepared the tax return of at least one other individual.If convicted, LABEE faces a maximum term of three years imprisonment each as to Counts 1 through 11; 20 years as to Count 12; and five years as to Count 13, for a maximum total sentence of 58 years in prison, followed by up to three years of supervised release, and a $250,000 fine.
United States Attorney Boente reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.The case is being investigated by agents from the Internal Revenue Service- Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorney Jordan Ginsberg.
(Download Indictment )
Six Individuals Sentenced for Their Roles in Large, Multi-state Identity Theft RingRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, two individuals were sentenced for their roles in a large, multi-state, identity theft ring. United States District Court Judge Paul A. Magnuson sentenced Joel Delano Powell III, age 20, of Minneapolis, to 42 months in prison; and Trey Jeremiah Powell, age 20, of Brooklyn Park, to 57 months in prison. Both had earlier pleaded guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft.
Earlier this week, Joel Delano Powell, Jr., age 47, of St. Louis Park, was sentenced to 300 months in prison. Powell, Jr. was convicted following a jury trial in August and September 2012 of one count of conspiracy to commit bank fraud, seven counts of aiding and abetting bank fraud, and five counts of aggravated identity theft.
On Wednesday, Judge Magnuson sentenced Elston Edwards Sharps, age 47, of Minneapolis, to 32 months in prison; Kevin Terrell Martin, age 46, of St. Paul, to 124 months in prison; and Steven Lavell Maxwell, age 44, also of Minneapolis, to 140 months in prison. All three had earlier pleaded guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Seventeen other defendants have been sentenced in this case thus far, while nine more await sentencing.
These individuals, along with over 100 others, were involved in a conspiracy from 2006 through December of 2011 to defraud banks, bank customers, and businesses. The co-conspirators used victim information to create counterfeit checks and false identification documents to conduct fraudulent transactions at retail establishments where expensive merchandise was purchased and returned for cash. At banks, the conspirators posed as customers and withdrew money from victims’ bank accounts. The members of the conspiracy conducted these fraudulent transactions throughout Minnesota and in at least 13 other states. Victim information was obtained by members of the conspiracy through multiple sources, including from individuals who stole victim information from their places of employment, from individuals employed at area banks, from those who stole the information from the mail, during vehicle break-ins, and business burglaries, among other sources.
Following sentencing, Patrick Henry, the head of the Minnesota Financial Crimes Task Force, said, “This investigation came together as a result of the partnerships between agencies and the extraordinary efforts of all involved. The Minnesota Financial Crimes Task Force led this investigation, but this is an example of successful collaboration of local, state, and federal criminal justice agencies.”
Kelly R. Jackson, Special Agent in Charge of IRS Criminal Investigations, St. Paul Field Office, which also participated in the investigation, said, “Individuals who commit identity fraud of this magnitude deserve to be punished to the fullest extent of the law. These individuals caused immeasurable hardship to innocent victims. IRS Criminal Investigations remains committed to the pursuit of identity theft, and together with our law enforcement partners and the U.S. Attorney’s Office, we will hold those who engage in similar behavior fully accountable.”
In a related case, five individuals were charged with conspiracy to commit bank fraud, bank fraud and aggravated identity theft. Jemall Ronta Williams, Jerome Davis, Jr., Tierra Samantha Catrina House, and Shanell Collette Brewer each pleaded guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft. Gordon Lamarr Moore was convicted in April 2013 following a jury trial. During the trial, Moore fled and became a fugitive. On July 8, 2013, he was arrested in at a hotel in Milwaukee, Wisconsin. Moore attempted to again flee, but was ultimately apprehended without incident.
These cases resulted from an investigation conducted by the Minnesota Financial Crimes Task Force, the U.S. Postal Inspection Service, and the Internal Revenue Service-Criminal Investigations. They were prosecuted by Assistant U.S. Attorney Karen B. Schommer and Assistant U.S. Attorney Michelle E. Jones.
The Financial Crimes Task Force was established pursuant to state law and is comprised of local, state, and federal law enforcement investigators dedicated to combating the growing problem of cross-jurisdictional financial crimes. The task force, overseen by an advisory board also created under state law, serves the entire District of Minnesota, presenting its cases to county or federal prosecutors, as appropriate.
The task force and the Minnesota U.S. Attorney’s Office want to remind people to protect themselves from identity theft. For more information, visit http://www.stopfraud.gov/protect-identity.html.
For more information on how to avoid becoming a victim of identity theft, visit https://postalinspectors.uspis.gov/investigations/MailFraud/fraudschemes/mailtheft/IdentityTheft.aspx . The IRS-Criminal Investigations also urges citizens to review the Taxpayer Guide to Identity Theft, which can be found at http://www.irs.gov.
For tips on how to prevent mail theft, visit https://postalinspectors.uspis.gov/investigations/MailFraud/fraudschemes/mailtheft/MailTheft.aspx.Six Colombian Nationals Charged with Murder of DEA AgentRead the Press Release
Six Colombian nationals were indicted today by a federal grand jury in the Eastern District of Virginia for the kidnapping and murder of Drug Enforcement Administration (DEA) Special Agent James Terry Watson.
“Special Agent Watson was a brave public servant who dedicated his life to protecting the country he loved. He was a hero, in every sense of the word, who was taken from us far too suddenly and far too soon," said Attorney General Eric Holder. “With today's arrests, we take an important step towards ensuring that those allegedly responsible for his senseless murder are brought to justice. We also send an unmistakable message to all who commit acts of violence against America's law enforcement professionals: no matter who you are or where you live, we will do everything in our power to hold you accountable to the fullest extent of the law.”
Gerardo Figueroa Sepulveda, 38; Omar Fabian Valdes Gualtero, 27; Edgar Javier Bello Murillo, 26; Hector Leonardo Lopez, 23; Julio Estiven Gracia Ramierez, 30; and Andrés Alvaro Oviedo-Garcia, 21, were each charged with two counts of second degree murder, one count of kidnapping and one count of conspiracy to kidnap. Oviedo-Garcia was also charged with two counts of assault.
Additionally, the grand jury indicted Wilson Daniel Peralta-Bocachica, 30, also a Colombian national, for his alleged efforts to destroy evidence associated with the murder of Special Agent Watson.
According to the indictment, Figueroa, Valdes, Bello, Lopez, Gracia and Oviedo-Garcia were part of a kidnapping and robbery conspiracy that utilized taxi cabs in Bogota, Colombia, to lure victims into a position where they could be attacked and robbed. Once an intended victim entered a taxi cab, the driver of the taxi cab would signal other conspirators to commence the robbery and kidnapping operation.
The indictment alleges that on June 20, 2013, while he was working for the U.S. Mission in Colombia, Special Agent Watson entered a taxi cab operated by one of the defendants. Special Agent Watson was then allegedly attacked by two other defendants – one who stunned Special Agent Watson with a stun gun and another who stabbed Special Agent Watson with a knife, resulting in his death.
The charges were announced by Attorney General Holder; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Neil H. MacBride of the Eastern District of Virginia; Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office; Special Agent in Charge Derek S. Maltz of the Drug Enforcement Administration’s Special Operations Division; and Director Gregory B. Starr of the Diplomatic Security Service for the U.S. Department of State.
This case is being investigated by the FBI, DEA and Diplomatic Security Service, in close cooperation with Colombian authorities, and with assistance from INTERPOL and the Justice Department’s Office of International Affairs. Assistant U.S. Attorney Michael P. Ben’Ary from the U.S. Attorney’s Office for the Eastern District of Virginia and Special Counsel Stacey Luck and Trial Attorney Christine Duey from the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case on behalf of the United States. The Department of Justice gratefully acknowledges the Colombian Attorney General’s Office, Colombian National Police, Colombian Directorate of Criminal Investigation and Interpol (DIJIN), DIJIN Special Investigative Unit, Bogota Metropolitan Police and Colombian Technical Investigation Team for their extraordinary efforts, support and professionalism in responding to this incident.
Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
Sentences for July 11 - 17, 2013Read the Press Release
Uriel Aguinaga-Ortiz, 33, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on July 17, 2013, for illegal re-entry of a previously deported alien into the United States. Aguinaga-Ortiz was arrested in Basin, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Juan Jose Medellin-Tovar, 26, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on July 17, 2013, for illegal re-entry of a previously deported alien into the United States. Medellin-Tovar was arrested in Wheatland, Wyoming. He received time served plus ten days, was ordered to pay a $100.00 special assessment and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Timothy George Saxton, 53, of Newcastle, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on July 17, 2013, for possession of child pornography and for receipt of child pornography. Saxton was arrested in Newcastle, Wyoming. He received 60 months imprisonment, to be followed by 20 years of supervised release and was ordered to pay a $200.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Jerom Stuart, 19, of Rock Springs, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on July 16, 2013, for receipt of obscene material. Stuart was arrested in Rock Springs, Wyoming. He was ordered to serve five years of probation. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Kevin Paul Johnson, 38, of Gillette, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on July 12, 2013, for being a felon in possession of a firearm. Johnson was arrested in Gillette, Wyoming. He received 51 months imprisonment, to be followed by three years of supervised release and was ordered to pay a $100.00 special assessment and a $400.00 fine. This case was investigated by the Gillette Police Department, U.S. Probation Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Corey Allen Donaldson, 40 of Victoria Province, Australia, was sentenced by Federal District Court Judge Alan B. Johnson on July 11, 2013, for bank robbery. Donaldson was arrested in Clinton, Utah. He received 70 months imprisonment, to be followed by three years of supervised release and was ordered to pay a $100.00 special assessment and restitution in the amount of $140,750.00. This case was investigated by the Federal Bureau of Investigation.
San Francisco Man Pleads Guilty to Attempted Sexual Exploitation of a Minor in MexicoRead the Press Release
SAN FRANCISCO - Gary Hardeman pleaded guilty in federal court in San Francisco today to committing a felony offense involving a minor while under a duty to register as a sex offender, United States Attorney Melinda Haag announced.
In pleading guilty, Hardeman admitted to traveling from San Francisco to Mexico City, Mexico, and attempting to engage in sexual acts with a 13-year-old girl between December 13 and 17, 2007. At the time of the offense, Hardeman was required by California law to register as a sex offender, based on his previous convictions for sex offenses in California.
Hardeman, 58 of San Francisco, was indicted by a federal Grand Jury on November 23, 2010. He was charged with one count of engaging in illicit sexual conduct in foreign places, in violation of 18 U.S.C. § 2423(c), and one count of committing this crime while under a legal obligation to register as a sex offender, in violation of 18 U.S.C. § 2260A. Under the plea agreement, Hardeman pled guilty to the second of these two counts.
“As this case shows, those who engage in crimes involving the sexual exploitation of minors cannot escape justice by traveling beyond our borders,” said Clark Settles, Special Agent in charge for Homeland Security Investigations, San Francisco. “Protecting young people both here and abroad from sexual predators continues to be a top priority for HSI. We are putting these predators on notice that HSI and its law enforcement partners stand ready to pursue and prosecute those who prey on innocent children. ”
Hardeman, who is currently in custody, will be sentenced on October 22, 2013, by The Honorable Richard Seeborg, U.S. District Court Judge, in San Francisco. The mandatory statutory penalty for a violation of 18 U.S.C. § 2260A is ten years and a maximum fine of $250,000, plus restitution. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Owen Martikan and Janaki Gandhi are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Hui Chen. The prosecution is the result of a multi-year investigation by the Department of Homeland Security, Homeland Security Investigations, in the United States and Mexico.
Rowlett, Texas, Man Sentenced to 250 Months in Federal Prison for Attempted Enticement of ChildrenRead the Press Release
DALLAS — Joshua David Watson, 37, of Rowlett, Texas, was sentenced today by U.S. District Judge Jane J. Boyle to 250 months in federal prison, following his guilty plea in November 2012 to an indictment charging two counts of attempted enticement of a minor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, from approximately July 25 to August 18, 2012, Watson used the Internet and a cell phone to persuade, induce and entice a purported parent of two minor children to allow him to engage in sexual activity with the children. Not only did Watson engage in a number of sexually explicit conversations with the purported parent of the children about engaging in sexual activity with them, but he also made plans to meet the purported parent and children and engage in sexual activity with the children. In fact, he arrived at a pre-arranged location on August 18, 2012, where he was arrested.
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 case was investigated by the FBI. Assistant U.S. Attorney Lisa J. Miller prosecuted.
Pill Dealer GetsRead the Press Release
FEDERAL PRISON TIME FOR SELLING OXYCODONE IN BECKLEY
BECKLEY, W.Va. – A 27-year-old pill dealer was sentenced today to one year in federal prison for selling oxycodone in Beckley, announced U.S. Attorney Booth Goodwin. Carlos McMillion, of Beckley, previously pleaded guilty in March to distribution of oxycodone. On November 9, 2012, McMillion sold oxycodone pills to a confidential informant working in cooperation with law enforcement authorities. The illegal pill transaction took place near Beckley.
The Beckley Police Department conducted the investigation. Assistant United States Attorney Miller Bushong handled the prosecution. The sentence was imposed by United States District Judge Irene C. Berger.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Philadelphia Man Charged with Sex Trafficking A MinorRead the Press Release
PHILADELPHIA – An indictment was unsealed today charging Rahim McIntyre, 36, of Philadelphia, PA, with three counts of sex trafficking of a minor and by force, announced United States Attorney Zane David Memeger. McIntyre was arrested today.
According to the indictment, McIntyre, a/k/a “King Kobra,” caused Internet advertisements to be created in which he advertised various females as available for purchase for purposes of prostitution. One of these females, whom McIntyre recruited, was under the age of 18. The advertisements featured pictures of the females, either scantily clad or partially nude, a description of each female, and a phone number to call to arrange a meeting with a female employed by McIntyre as a prostitute.
If convicted, the defendant faces a maximum possible sentence of life imprisonment, with a minimum mandatory of 15 years, a $750,000 fine, five years supervised release and a $300 special assessment.
McIntyre’s brother, Rashaad McIntyre, was charged in December 2012 with sex trafficking of minors and production of child pornography.
The case was investigated by the Federal Bureau of Investigation, with assistance from the Pennsylvania State Police Criminal Intelligence Center, and the Philadelphia First Judicial Court Warrant Unit. It is being prosecuted by Assistant United States Attorney Michelle Morgan. The defendant’s arrest is part of the FBI’s Operation Cross Country, a nationwide effort during July 2013 to apprehend sex traffickers and identify and rescue victims of human trafficking.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Pharmaceutical Company Agrees to Pay $3.5 Million to Settle False Claims Act AllegationsRead the Press Release
SAN FRANCISCO - Mallinckrodt LLC, a pharmaceutical manufacturer, has agreed to pay $3.5 million to settle allegations that it made improper payments to physicians and, as a result, caused the submission of false claims to Medicare and Medicaid between January 2005 and June 2010, United States Attorney Melinda Haag announced.
The civil settlement resolves a lawsuit filed in the United States District Court for the Northern District of California in April 2008 by a former employee of Mallinckrodt. The action was filed under the qui tam provisions of the federal False Claims Act and several state False Claims Acts, which permit private citizens, called "relators," to bring lawsuits on behalf of the United States or a state or commonwealth and receive a portion of the proceeds of a settlement or judgment awarded against a defendant. The relator in this action will receive approximately $603,000 as his statutory share of the proceeds of this settlement.
The lawsuit alleged that, among other things, Mallinckrodt paid certain physician consultants for their participation in speaker programs, clinical trials, and meetings, or for the completion of certain forms, in order to induce them to write prescriptions for Mallinckrodt's drug products, namely Restoril, Magnacet, Tofranil-PM, and their generic equivalents. As a result of these payments, the suit alleged that Mallinckrodt caused the submission of tainted, false claims for payment to the Medicare and Medicaid programs.
"This settlement demonstrates this Office's commitment to protecting the integrity of the Medicare and Medicaid programs and ensuring that physicians are making care decisions without undue influence," said U.S. Attorney Haag.
The majority of the settlement funds, approximately $3.173 million, will be paid to the United States which not only funds the Medicare program, but also contributes to the various Medicaid programs around the country. The remainder of the funds will be split between eight states and commonwealths including, California, Maryland, Missouri, New York, Ohio, Rhode Island, Utah, and West Virginia.
AUSA Erica Blachman Hitchings handled the case with the assistance of Lucille Yee, Michael Zehr, Kathy Terry, and Jessica Meegan. The settlement is the result of an investigation by the U.S. Department of Health and Human Services Office of Inspector General, U.S. Food and Drug Administration Office of Criminal Investigations, the Federal Bureau of Investigation, and the National Association of Medicaid Fraud Control Units.
Panasonic and Its Subsidiary Sanyo Agree to Plead Guilty <br /> in Separate Price-Fixing Conspiracies Involving Automotive Parts <br /> and Battery CellsRead the Press Release
Panasonic Corp. and its subsidiary, SANYO Electric Co. Ltd., have agreed to plead guilty and to pay a total of $56.5 million in criminal fines for their roles in separate price-fixing conspiracies involving automotive parts and battery cells, the Department of Justice announced today. LG Chem Ltd., a leading manufacturer of secondary batteries, has agreed to plead guilty and to pay a $1.056 million criminal fine for price fixing involving battery cells.
Osaka, Japan-based Panasonic agreed to pay a $45.8 million criminal fine for its role in the automotive parts conspiracy. SANYO agreed to pay a $10.731 million criminal fine for its role in the battery cells conspiracy. The guilty pleas against SANYO and LG Chem are the first in the department’s ongoing investigation into anticompetitive conduct in the cylindrical lithium ion battery cell industry.
The three-count felony charge against Panasonic was filed in U.S. District Court for the Eastern District of Michigan. Separate one-count felony charges were filed against SANYO and LG Chem in U.S. District Court for the Northern District of California. As part of the plea agreements, which are subject to court approval, the charged companies have agreed to cooperate in the department’s ongoing antitrust investigations.
Panasonic has agreed to plead guilty for its role in a conspiracy to fix prices of switches, steering angle sensors and automotive high intensity discharge (HID) ballasts installed in cars sold in the United States and elsewhere. SANYO and LG Chem Ltd. have agreed to plead guilty for their roles in a conspiracy to fix the prices of cylindrical lithium ion battery cells sold worldwide for use in notebook computer battery packs.
“Panasonic is charged with participating in separate price-fixing conspiracies affecting numerous parts used in cars made and sold in the United States while its subsidiary was also fixing prices on battery cells used by consumers of notebook computers,” said Scott D. Hammond, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “Pleading guilty and cooperating with the division’s ongoing investigations is a necessary step in changing a corporate culture that turned customers into price-fixing victims.”
According to the first count of a three-count felony charge filed today in U.S. District Court for the Eastern District of Michigan in Detroit, Panasonic participated in a conspiracy to rig bids for, and to fix, stabilize and maintain the prices of steering wheel switches, turn switches, wiper switches, combination switches and door courtesy switches sold to Toyota Motor Corp. and Toyota Motor Engineering & Manufacturing North America Inc. in the United States and elsewhere. According to the court document, Panasonic and its co-conspirators carried out the conspiracy from at least as early as September 2003 until at least February 2010.
The second count charges that Panasonic, during this same time period, participated in a conspiracy to rig bids for, and to fix, stabilize, and maintain the prices of steering angle sensors sold to Toyota in the United States and elsewhere. The department said that Panasonic and its co-conspirators agreed, during meetings and conversations, to suppress and eliminate competition in the automotive parts industry by agreeing to rig bids for, and to fix, stabilize, and maintain the prices of steering angle sensors sold to Toyota Motor Corp. and Toyota Motor Engineering & Manufacturing North America Inc. in the United States and elsewhere.
According to the third count of the charge, from at least as early as July 1998 and continuing until at least February 2010, Panasonic and its co-conspirators participated in a conspiracy to suppress and eliminate competition in the automotive parts industry by agreeing, during meetings and conversations, to rig bids for, and to fix, stabilize, and maintain the prices of automotive HID ballasts sold to Honda Motor Co. Ltd. and American Honda Motor Co. Inc., Mazda Motor Corp. and Mazda Motor of America Inc., and Nissan Motor Co. Ltd. and Nissan North America Inc. in the United States and elsewhere.
I ncluding Panasonic, 11 companies and 15 executives have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $874 million in criminal fines as a result of the auto parts investigation. Additionally, 12 of the individuals have been sentenced to pay criminal fines and to serve jail sentences ranging from a year and a day to two years each. The three additional executives have agreed to serve time in prison and are currently awaiting sentencing.
“The FBI remains committed to protecting American consumers and businesses from corporate corruption. The conduct of Panasonic, SANYO, and LG Chem resulted in inflated production costs for notebook computers and cars purchased by U.S. consumers,” said Joseph S. Campbell, FBI Criminal Investigative Division Deputy Assistant Director. “These investigations illustrate our efforts to ensure market fairness for U.S. businesses by bringing corporations to justice when their commercial activity violates antitrust laws.”
According to the one-count felony charge filed today in the U.S. District Court for the Northern District of California in San Francisco, SANYO and LG Chem engaged in a conspiracy to fix the price of the cylindrical lithium ion battery cells used in notebook computer battery packs from about April 2007 until about September 2008. Cylindrical lithium ion battery cells are rechargeable batteries that are often incorporated in groups into more powerful battery packs commonly used to power electronic devices.
According to the charges, SANYO, LG Chem and their co-conspirators carried out the conspiracy by, among other things, agreeing during meetings and conversations to price cylindrical lithium ion battery cells for use in notebook computer battery packs to customers at predetermined levels and issuing price quotations to customers in accordance with those agreements. The department also said that SANYO, LG Chem and their co-conspirators collected and exchanged information for the purpose of monitoring and enforcing adherence to the agreed-upon prices and took steps to conceal the conspiracy.
Panasonic, SANYO and LG Chem are each charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of a $100 million criminal fine for corporations. The maximum fine for the company may be increased to twice the gain derived from the crime or twice the loss suffered by the victims, if either of those amounts is greater than the statutory maximum fine.
Today’s charges arose from an ongoing investigation in the cylindrical lithium ion battery cells industry being conducted by the Antitrust Division’s San Francisco Office and the FBI in San Francisco as well as an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s automotive parts charges were brought by the Antitrust Division’s National Criminal Enforcement Section and the FBI’s Detroit Field Office, with the assistance of the FBI headquarters’ International Corruption Unit. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Detroit Field Office at 313-965-2323. Anyone with information concerning illegal or anticompetitive conduct in the battery industry is urged to call the Antitrust Division’s San Francisco Office at 415-436-6660 or visit www.justice.gov/atr/contact/newcase.htm.Owner of el jimador mexican restaurant sentenced for harboring an illegal alienRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that J. Guadalupe Hernandez, 29, of Farmington, N.Y., who was convicted of harboring an illegal alien, was sentenced three years probation, a $5,000 fine and a forfeiture of $20,000 by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Marisa J. Miller, who handled the case, stated that an investigation by the Immigration and Customs Enforcement discovered illegal aliens working at the defendant's business, El Jimador Mexican Restaurant. During the execution of a search warrant, special agents found three Mexican nationals living in the basement of the restaurant. Hernandez hired the aliens knowing that they were not authorized to work in the United States. The defendant paid the individuals in cash "under the table" and allowed them to live in the basement of the restaurant.
The sentencing is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.Owner of Los Angeles-area DME Company Pleads Guilty to<br /> Conspiring to Defraud Medicare and Medi-CalRead the Press Release
The owner of a Los Angeles-area durable medical equipment (DME) supply company has pleaded guilty to conspiring to defraud Medicare and Medi-Cal of more than $650,000.
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 for the Los Angeles Region of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG); Assistant Director in Charge Steven Martinez of the FBI’s Los Angeles Field Office; and Special Agent in Charge Joseph Fendrick of the California Department of Justice’s Bureau of Medi-Cal Fraud and Elder Abuse, made the announcement.
Kim Ricks, of Moreno Valley, Calif., pleaded guilty on July 17, 2013, before U.S. District Judge Fernando M. Olguin in the Central District of California to one count of conspiracy to commit health care fraud.
In court, Ricks admitted that she owned and operated Kim’s Medical Supplies (“KMS”), a DME company that was located in Moreno Valley. Ricks enrolled KMS in both Medicare and Medi-Cal, which allowed her to submit claims to both programs. Ricks admitted that between approximately December 2005 and September 2012, she submitted claims to Medicare and Medi-Cal for power wheelchairs (PWCs) and other DME on behalf of people who did not have a legitimate medical need for the equipment, a practice that, Ricks admitted in court, she knew violated Medicare and Medi-Cal rules and regulations.
Ricks also admitted that she submitted claims to Medicare and Medi-Cal for PWCs and other DME that neither she nor her co-conspirators delivered to KMS’s customers, which Ricks knew violated the rules and regulations of both Medicare and Medi-Cal. In some cases, Ricks obtained the Medicare billing and personal information of individuals and, without their knowledge, used that information to submit claims to Medicare and Medi-Cal for PWCs and other DME that neither she nor her co-conspirators provided to the individuals. Ricks admitted that she submitted these types of claims to Medicare and Medi-Cal because she needed the money to keep KMS viable. Ricks also admitted that she submitted claims to Medicare and Medi-Cal for power wheelchairs and DME that she knew were supported by fraudulent prescriptions forged by her co-conspirators.
Ricks admitted that she was responsible for the claims that KMS submitted to Medicare and Medi-Cal, although, at times, her co-conspirators used her Medicare and Medi-Cal provider numbers to submit false and fraudulent claims to both programs. As a result of this conspiracy, Ricks admitted that she and her co-conspirators submitted and caused the submission of approximately $643,468 in fraudulent Medicare claims and received approximately $236,882 in ill-gotten reimbursement payments. Ricks admitted further that she and her co-conspirators submitted and caused the submission of approximately $11,849 in fraudulent Medi-Cal claims and received approximately $8,660 in ill-gotten reimbursement payments.
At sentencing, scheduled for Oct. 24, 2013, Ricks faces a maximum penalty of 10 years in prison.
The case is being prosecuted by Trial Attorney Jonathan T. Baum of the Criminal Division’s Fraud Section. The case is being investigated by the HHS-OIG and the California Department of Justice.
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention & Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Ohio Man Sentenced to 21 Months in Prison for Failing to Register as A Sex OffenderRead the Press Release
PITTSBURGH - A resident of Steubenville, Ohio, has pled guilty to a charge of failure to register as a sex offender, and has been sentenced in federal court to 21 months imprisonment, to be followed by 20 years of supervised release, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Boyd Dale Stacey, 54.
According to information presented to the court, between on or about Nov. 4, 2011, and in or around January, 2012, Stacey failed to register as a Sex Offender, as required by the Sex Offender Registration and Notification Act.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Marshals Service for the investigation leading to the successful prosecution of Stacey.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Norwalk Resident Sentenced to 30 Months in Federal Prison for Trafficking NarcoticsRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that JOSE MENDEZ-LUNA, 31, was sentenced yesterday by United States District Judge Janet C. Hall in New Haven to 30 months of imprisonment and a three year term of supervised release for trafficking narcotics.
According to court documents and statements made in court, on March 27, 2012, New York Police Department officers conducting a narcotics trafficking investigation contacted the Drug Enforcement Administration in Bridgeport with information that individuals operating out of 18-20 Taylor Avenue and 20 Woodbury Avenue in Norwalk had just received a multiple-kilogram shipment of cocaine. Based upon this information, on the morning of March 28, members of the DEA Bridgeport High Intensity Drug Trafficking Area Task Force and the Norwalk Police Department’s Special Services Division executed a court-authorized search of 20 Woodbury Avenue and encountered MENDEZ-LUNA, Hector Valle and others. In a bedroom that MENDEZ-LUNA had been using, officers located a 9-millimeter firearm, a magazine with four rounds of ammunition, approximately 262 grams of cocaine, two digital scales, narcotics packaging materials and nine cell phones. A search of Valle’s bedroom revealed quantities of cocaine and heroin, drug ledgers and approximately $8,000 in cash. Approximately one ounce of heroin was also recovered from the kitchen of the residence.
A subsequent court-authorized search of 18-20 Taylor Avenue yielded approximately five kilograms of heroin, 10 pounds of Methamphetamine, $279,000 in cash, one handgun, ammunition and narcotics packaging materials.
MENDEZ-LUNA, a citizen of Venezuela, has been detained since his arrest on March 28, 2012. On April 17, 2013, he pleaded guilty to one count of conspiracy to possess with the intent to distribute cocaine.
Valle also has pleaded guilty and awaits sentencing.This matter was investigated by Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force, which is composed of members of the Bridgeport, Milford, Norwalk, Stamford, Stratford and Westport Police Departments. The investigation was significantly assisted by the Norwalk Police Department’s Special Services Division and the New York Police Department.
This case is being prosecuted by Assistant United States Attorney Sarah Karwan.
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[email protected]Northern Virginia Man Sentenced to 270 Months for Role in Facilitating Centreville Robbery Resulting in DeathRead the Press Release
ALEXANDRIA, Va. – Stacey Lorenzo Reed, 44, of Manassas, Va., was sentenced today to 270 months in prison, followed by three years of supervised release, for conspiracy to commit robbery and aiding and abetting the discharge of a firearm during or in relation to a crime of violence.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Lieutenant Colonel Edwin C. Roessler Jr., Acting Fairfax County Chief of Police, made the announcement after sentencing by United States District Judge Anthony J. Trenga.“Nothing can bring back the life that was taken during this horrific crime, but today’s sentence sends a clear message that there are severe consequences for all those who conspire to commit crimes,” said U.S. Attorney Neil H. MacBride. “Mr. Reed, while not physically present at the murder, put this tragic and terrifying sequence of events in motion. He will now have over 20 years in federal prison to contemplate his greed fueled involvement in the crime.”
Reed previously pleaded guilty on April 18, 2013. According to court documents, Reed obtained information that a business owner, “D.B.,” kept substantial proceeds of his check cashing business at his home in Centreville, Virginia. Armed with this “inside information,” Reed took coconspirator, Tasheik Ashanti Champean, to D.B.’s home to surveil the property for a future robbery. On May 17, 2010, Reed drove Champean and Reynard Lazaro Prather, an individual Champean had recruited for the robbery, to Centreville and dropped off the two coconspirators in a wooded area near D.B.’s home. Prather and Champean – both armed with semi-automatic pistols – entered D.B.’s garage to await his arrival. When D.B.’s son and an employee, Jose Cardona, arrived at the residence, they were confronted by Prather and Champean. During the struggle, Cardona was shot and killed by one of the two men. Following Cardona’s murder, Prather and Champean fled the area. Eventually, Prather and Champean met up with Reed and Reed drove Prather and Champean out of Virginia and back to Maryland.
Champean and Prather, both of whom pleaded guilty, were both previously sentenced to 360 months in prison for their role in the offense.
This case was investigated by the Fairfax County Police Department’s Homicide Unit. Assistant United States Attorneys Michael E. Rich and Zachary Terwilliger 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.Niskayuna Man Sentenced for Receiving Child PornographyRead the Press Release
Defendant Who Received Thousands of Still Images and Videos of Child Pornography Sentenced to 96 Months in Prison
ALBANY, NEW YORK — RONALD J. LOVETT, age 67, of Niskayuna, New York, was sentenced today by United States District Court Judge Mae A. D’Agostino, in Albany to ninety-six (96) months of imprisonment for receiving child pornography images, announced United States Attorney Richard S. Hartunian and Matthew Scarpino, Resident Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations. LOVETT, who had entered a guilty plea on March 20, 2013, was also ordered to pay a fine of $17,500.00, to pay restitution totaling $5,661.83, to have no unsupervised contact with minors, and to register with the New York State Sex Offender Registry Program.
Between May 2007 and February 10, 2012, LOVETT used the Internet to access various child pornography websites and various file sharing networks. While accessing some of the child pornography websites or file sharing networks, LOVETT downloaded multiple still images and videos of child pornography onto his home computer, thumb drives, and external hard drives.
This case was investigated by U.S. Immigration and Customs Enforcement, Homeland Security Investigations.
New Jersey Pharmacist Pleads Guilty in Scheme to Illegally Distribute Pharmaceutical DrugsRead the Press Release
TRENTON, N.J. – Randy Binder, a pharmacist and the former proprietor of Texas Road Pharmacy in Manalapan, N.J., admitted today that he conspired to illegally distribute oxycodone to people without a legitimate need for the drug, U.S. Attorney Paul J. Fishman announced.
Binder, 60, of Matawan, N.J., pleaded guilty before U.S. District Judge Freda L. Wolfson in Trenton federal court to an information charging him with conspiracy to distribute oxycodone.
According to documents filed in the case and statements made in court:
Binder admitted that he participated in a conspiracy to distribute oxycodone for no legitimate medical purpose and beyond the bounds of medical practice between January 2009 and June 2012.
Oxycodone, the active ingredient in brand name pills such as OxyContin, Roxicodone and Percocet, is a Schedule II controlled substance – meaning that it has a high potential for abuse. Demand for oxycodone-based prescription pain medication has grown to epidemic proportions in the United States, and dealers profit by selling such medication on the street. Users will often crush and snort the pills or dissolve and inject them to get an immediate high. This abuse can lead to addiction, overdose and death.
Binder would meet fellow conspirators in the parking lot of Texas Road Pharmacy to provide them with pills, or would leave the pills in a car in the parking lot, which conspirators would then pick up. Binder would also accept prescriptions which he knew to be invalid.
The charge to which Binder pleaded guilty carries a maximum potential penalty of 20 years in prison and a $1 million fine. Sentencing is currently scheduled for Oct. 24, 2013.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski; the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and IRS–Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Jonathan Romankow of the U.S. Attorney’s Office Criminal Division and Tino Lisella, Trial Attorney with the Department of Justice, Tax Division. 13-297
Defense counsel: Steven Altman Esq., New Brunswick, N.J.Binder, Randy Information
Mesquite Man Sentenced to 188 Months in Federal Prison for Transporting and Shipping Child PornographyRead the Press Release
DALLAS — Jeremy Blackburn, 33, was sentenced today by U.S. District Judge Jane J. Boyle to 188 months in federal prison, following his guilty plea to one count of transporting and shipping child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Blackburn has been in custody since he entered that guilty plea in March 2013.
According to documents filed in the case, an undercover operation to identify persons who participate in the distribution of child pornography and the sexual exploitation of children through the use of peer-to-peer file sharing networks resulted in the identification of Blackburn. A search warrant was executed at his residence in Mesquite, Texas, in July 2012, and computer equipment was seized. There were more than 600 images and videos of child pornography available to share on his file-sharing program.
Blackburn admitted than in February 2012, he used the Internet and file-sharing software to share and transmit image and video files depicting minors engaged in sexually explicit conduct. He admitted that he preferred younger girls but not babies, and he admitted to downloading child pornography just 30 minutes prior to the execution of the search warrant. He also admitted that he sought, received and possessed images and videos that included bondage and other sadistic acts involving minors.
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 Mesquite Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Camille Sparks was in charge of the prosecution.
Men Sentenced in Federal Court for Role in Arson for Profit SchemesRead the Press Release
James L. Santelle, U.S. Attorney for the Eastern District of Wisconsin, announced that on July 15, 2013, Mathew Lemberger (age: 33) was sentenced to 120 months imprisonment by United States District Judge William C. Griesbach. Lemberger had previously pled guilty to two counts of arson of a building. According to the plea agreement and other documents filed in court, Lemberger admitted collaborating with Thomas Wank (age: 55), James Kannenberg (age: 65) and Adam Jaehnig (age: 36) to intentionally burn his business property in December 2010 for purposes of later collecting insurance proceeds for the loss. Lemberger also admitted that he and Kannenberg also burned Lemberger’s residence in March 2009 to collect the insurance proceeds.
Judge Griesbach previously sentenced Wank on April 22, 2013, and Kannenberg on May 14, 2013 to 36 month terms of imprisonment following their guilty plea to the December 2010 arson to the building containing Lemberger’s business equipment. Jaehnig was sentenced on June 24, 2013 to 12 month’s imprisonment based on his guilty plea to making a false statement to law enforcement in connection to that arson.
In addition to the above terms of imprisonment, Lemberger, Wank, Kannenberg, and Jaehnig were ordered to serve three years of supervised release. As conditions of that release, they were ordered to pay restitution for the insurance payout for the December 2010 arson totaling $328,145. Lemberger was also ordered to pay restitution to the insurance company for the money fraudulently received resulting from the March 2009 residence fire totaling $451,263.
In sentencing the defendants, Judge Griesbach noted the seriousness of arson offenses, specifically, the often life-threatening danger that such offenses creates for firefighters and potentially other citizens. He added that buildings and property are needlessly destroyed resulting in significant monetary losses to insurance companies and fraudulently obtained cash windfalls for arsonists. The sentences imposed served in part to deter other individuals contemplating arson for profit schemes.
The case was investigated by special agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Wisconsin Department of Justice-Division of Criminal Investigation, and detectives from the Brown County Sheriff’s Office and the Washington County Sheriff’s Office. It was prosecuted by Assistant United States Attorney William J. Roach.
Members of Crack Cocaine Distribution Ring Sent to Federal PrisonRead the Press Release
McALLEN, Texas – Alfredo Barrientos, 30, of Rio Grande City, and Mexican National Esteban Trevino, 39, have been ordered to prison following their convictions in relation to a crack cocaine trafficking conspiracy, United States Attorney Kenneth Magidson announced today. The two men pleaded guilty on March 4, 2013.
Today, U.S. District Judge Micaela Alvarez handed Barrientos and Trevino federal prison sentences of 85 and 30 months, respectively, for possessing with the intent to distribute crack cocaine. Barrientos also received a three-year-term of supervised release. Not a U.S. citizen, Trevino is expected to face deportation proceedings following completion of his prison term.
In August 2011, agents of the Drug Enforcement Administration (DEA) with assistance from the Rio Grande City Police Department launched an investigation into a crack cocaine distribution network in Rio Grande City. Following an investigation that included 20 drug transactions involving informants and undercover agents that resulted in the seizure of more than 180 grams of crack cocaine, a federal grand jury indicted 11 Rio Grande City residents including the defendants on Nov. 13, 2012. The investigation revealed the crack cocaine distribution network relied upon the use of at least four residential homes in Rio Grande City where drug buyers could purchase crack cocaine around the clock.
The evidence presented during the hearing today showed Barrientos assisted his brother, Emmanuel Barrientos, in the crack distribution ring that included Juan Trevino and Esteban Trevino. The group sold large quantities of crack from two adjacent residences in Rio Grande City. In handing down these sentences, Judge Alvarez noted the harm the defendants had inflicted upon their community and strongly admonished them for dealing drugs from their residences in the midst of their families including small children.
Both will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The remaining nine defendants ensnared in the year-long investigation have been convicted. On May 21, 2013, Judge Alvarez sentenced Emmanuel Barrientos, 33, to 168 months in federal prison, Juan Trevino, 38, to 82 months of confinement, while Jose Huerta, 29, and Eliza Escobar, 30, each received sentences of 12 months imprisonment.
Nancy Cantu, 32, was sentenced to 48 months in federal prison by Chief U.S. District Judge Ricardo H. Hinojosa, while Melissa Wolf, 48, received 33 months of incarceration. Luciano Lopez III, 46, and Nancy Clarke, 39, await sentencing before Judge Hinojosa on Aug. 16, 2013, at 9:30 a.m. Israel Pena is scheduled for sentencing on Sept. 27, 2013, at 9:30 a.m.
This case was investigated by the DEA and the Rio Grande City Police Department and is being prosecuted by Assistant United States Attorneys Grady J. Leupold and Jason Honeycutt.
Marysville Man Receives 25-year Sentence for Coercing A Minor to Engage in Unlawful Sexual ActivityRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Justin Stewart Mote, 33, of Marysville was sentenced in U.S. District Court to 300 months in prison for coercing or enticing a minor to engage in illegal sexual activity. Mote will also be under court supervision for the rest of his life.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Franklin County Sheriff Zach Scott and members of the Franklin County Internet Crimes Against Children Task Force (ICAC) and William Hayes, acting special agent in charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Ohio and Michigan, announced the sentence imposed today by U.S. District Judge Edmund A. Sargus, Jr.
Mote pleaded guilty on February 21, 2013 to one count of using the internet to coerce or entice a minor to engage in unlawful sexual activity. According to testimony presented during the plea hearing, Mote met a 12-year old online and went to Connecticut and Pennsylvania to visit the minor in 2012. Franklin County ICAC investigators received information from a Newtown, Connecticut police officer on October 16, 2012 after the child’s father found letters, text messages and gifts from Mote. Investigators executed a search warrant at Mote’s residence on October 19 and found fully nude photographs of the victim on various media devices including a tablet computer belonging to Mote.
“Sexual predators present a grave danger to the community,” U.S. Attorney Stewart said. “Few crimes damage our society more than crimes of child exploitation.”
Mote, who was under indictment on state charges of attempted unlawful sexual contact with a minor and importuning in connection with a separate incident, that occurred in August 2011, was arrested. He has been in custody since his arrest.
“A substantial prison sentence like the one handed down today should serve as a stark reminder of what awaits those who sexually exploit children,” said William Hayes, acting special agent in charge of HSI Detroit, which covers Michigan and Ohio. HSI will continue to aggressively target those who prey upon and sexually exploit our children.”
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Judge Sargus also ordered Mote to undergo a sexual offender treatment program offered by the U.S. Bureau of Prisons. Mote will also be required to register as a sex offender for the rest of his life anywhere that he lives, works or goes to school.
U.S. Attorney Stewart commended the investigation by HSI agents and ICAC task force officers, as well as Assistant U.S. Attorney Heather Hill, who is prosecuting the case.
Louisiana Stolen Identity Tax Refund Fraud Defendant Sentenced to Federal PrisonRead the Press Release
The Justice Department and Internal Revenue Service (IRS) announced that Angela Myers, a resident of Baton Rouge, La., was sentenced today in the Middle District of Louisiana to 132 months in federal prison for wire fraud, making false claims, subscribing to false tax returns and aggravated identity theft.
Based on the evidence presented during a four-day trial in March 2013, Myers operated “Angie’s Tax Service,” a tax preparation business located in Baton Rouge Myers electronically filed false claims for tax refunds using the names and Social Security numbers of identity theft victims. Myers filed the identity theft tax returns using a unique preparer identification number assigned to her daughter. Many of the victims were nursing home patients who resided at Port Allen Care Center in Port Allen, La., and who did not have the ability to leave the nursing home.
The evidence also revealed that Myers lied on her own 2007 and 2008 federal income tax returns, failing to report hundreds of thousands of dollars of tax preparation fees that she earned at Angie’s Tax Service and used to buy various items, including an RV and a $50,000 investment product.
“This thief victimized vulnerable nursing home patients and stole from all honest taxpayers,” said Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division. “The severe prison sentence handed down today demonstrates that such crimes will not be tolerated.”
“We are very pleased with the sentencing of Angela Myers, many of whose victims were residents of a nursing home,” said Richard Weber, Chief of IRS-Criminal Investigation. “The IRS aggressively pursues those that use stolen social security numbers to file false tax returns. This sentence should serve as a reminder that there is a price to pay for scamming innocent people and defrauding the government. Many taxpayers put their trust in return preparers and when that trust is violated, the taxpayers and the tax system suffer.”
In addition to the prison sentence, the court ordered Myers to pay $202,685 in restitution to the IRS in addition to $39,030 that was already forfeited in this case.
Assistant Attorney General Keneally commended the efforts of special agents of IRS-Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Justin Gelfand and Jason Poole, who prosecuted the case.