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6 September 2013
Crowley Man Sentenced to 84 Months in Prison for Transporting Child PornographyRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that Tylerton James Clement, 20, of Crowley, La., was sentenced to 84 months in prison and five years of supervised release by U.S. District Court Judge Richard T. Haik for making a video of minors having sex and transporting the file. He is also required to register as a sex offender.
According to the evidence presented at the guilty plea, two other males, under the age of 18, picked up two 13-year-old females on April 3, 2011 and gave them drugs. The males then took the girls to a hotel in Crowley where they engaged in sex acts while the girls were under the effects of the drugs. Clement arrived at the hotel some time later and made a video of the sexual acts with his phone. He admitted to being 18 years old at the time that the video was made and admitted to transporting the video to Texas. Clement pleaded guilty on January 7, 2013.
“This defendant engaged in despicable behavior and abused two minors,” Finley said. “At the time of this incident, Clement was 18, old enough to know that he shouldn’t use his cellphone to video sex acts with children. This sentence should serve as a deterrent to anyone who is thinking about taking advantage of or sexually exploiting children. My office along with our federal, state and local partners will continue to investigate and prosecute these cases; we are going to do everything that we can to protect the children of this District”
“Recording the rape of drugged children is an abhorrent crime, demonstrating a complete lack of conscience or empathy by the defendant,” said Raymond R. Parmer Jr., special agent in charge of HSI New Orleans. “HSI and our law enforcement partners are engaged in a full court press across the United States and around the world to stop the sexual exploitation of children. This defendant will have many years to spend in prison thinking about his crime and the pain he so selfishly caused others.”
“I applaud the efforts of the entire investigative and prosecutive team for bringing swift justice to this individual who engaged in such outrageous exploitative conduct of children,” said Mike Anderson, FBI Special Agent In Charge, New Orleans Division.
The U.S. Immigrations and Customs Enforcement, FBI, U.S. Postal Service, Louisiana State Police and Crowley Police Department investigated the case. Assistant U.S. Attorney John Luke Walker prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice launched nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp Tips may be submitted anonymously.
Those concerned may also leave tips with the FBI at tips.fbi.gov. Tips may be submitted anonymously. The Lafayette FBI office number is (337) 233-2164.
Chinese National Pleads Guilty to Illegally Exporting Radiation-hardened Computer Circuits Used in Satellite Communications to ChinaRead the Press Release
DENVER – Philip Chaohui HE, aka Philip Hope, who was residing in Oakland, California, pled guilty September 3, 2013, before Senior U.S. District Court Judge Wiley Y. Daniel to conspiracy to violate the Arms Export Control Act and to Smuggle Goods from the United States, United States Attorney John Walsh and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Kumar C. Kibble announced. HE is scheduled to be sentenced by Judge Daniel on December 18, 2013 at 10:00 a.m. He is in federal custody.
According to court documents, including the stipulated facts contained in the plea agreement, HE attempted to illegally export to China radiation-hardened computer memory circuits used in satellite communications with a value of almost $550,000. HE, the only employee of Oakland, California-based Sierra Electronic Instruments (SEI), purchased 312 radiation-hardened circuits from a Colorado manufacturer. The circuits purchased by HE are categorized as defense articles within the International Trafficking in Arms Regulations (ITAR). Lawfully exporting defense articles requires licensing from the U.S. State Department’s Directorate of Defense Trade Controls.
On April 28, 2011, an unindicted co-conspirator caused two wire transfers totaling about $489,720 to be sent to HE’s bank account in California. On or about May 9, 2011, HE provided payment in full, $549,654, at the time HE placed the order with the Colorado manufacturer. According to the indictment, on or about May 17, 2011, HE provided false certification to the Colorado manufacturer that his company was purchasing the integrated circuits for end-use in the United States only, and HE further acknowledged that the items were controlled by U.S. Export Laws and could not be transferred, transshipped or otherwise disposed of in any other country, without the prior written approval of the U.S. Department of State.
On December 11, 2011, HE drove to the Port of Long Beach, California, and met with two men in front of a docked ship bearing a Chinese flag. The Chinese-flagged ship was registered to Zhenhua Port Machinery Company LTD, a subsidiary of the China state-owned corporation China Communications Construction. The ship had recently arrived from Shanghai, China, and was scheduled to return on December 15, 2011.
HE concealed 200 integrated circuits in several plastic infant formula containers placed inside five boxes which were sealed and labeled as “milk powder” written in Chinese. HE transported the boxes in the trunk compartment of his vehicle. Neither HE, nor his company SEI had a license to export defense articles of any description.
“We have specific laws designed to protect sensitive American technology from getting into the wrong hands overseas,” said U.S. Attorney John Walsh. “Defendant HE attempted to smuggle export-controlled radiation-hardened computer chips to China, and faces serious punishment for his criminal activity.”
“The Arms Export Control Act is designed to prevent having our technology illegally exported and ultimately used against us,” said Kumar C. Kibble, special agent in charge of HSI Denver. “Our HSI special agents in Colorado Springs, San Francisco and Los Angeles worked together with our law enforcement partners to investigate Philip HE and eliminate the threat he posed to this country.”
For conspiring to violate the Arms Export Control Act (AECA) and to Smuggle Goods from the U.S., HE faces not more than 5 years in federal prison, and a fine of up to $250,000.
The Defense Security Service (DSS) and the Defense Criminal Investigative Service (DCIS) provided critical assistance to HSI with this investigation. Assistance was also provided by the U.S. Attorneys Offices located in the Northern and Central Districts of California.
HE is being prosecuted by Assistant U.S. Attorney Matthew Kirsch.
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Chattanooga Man Sentenced to Prison for Child EnticementRead the Press Release
ROME, Ga. - Jason Antti, who traveled to Georgia to have a sexual encounter with a fictitious 11-year-old and 14-year-old girl has been sentenced on charges of child enticement.“This office will continue to aggressively pursue individuals who seek to exploit young children,” said United States Attorney Sally Quillian Yates. “Engaging in sexual acts with children is a vile and violent act, and perpetrators will be held accountable for this reprehensible conduct.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI’s various Child Exploitation Task Forces scattered throughout the country are designed to identify, investigate, and present for prosecution those individuals like Mr. Antti who choose to prey on our nation’s children. Mr. Antti, having been sentenced in federal court, will now have to answer for his predatory criminal conduct.”
According to United States Attorney Yates, the charges and other information presented in court: In June 2012, a special agent with the FBI’s Northwest Georgia Internet Crimes Against Children Task Force, working online and undercover, posted an ad on Craigslist. The agent posed as a stepfather looking for people interested in having sexual relations with his two young step-daughters. Antti responded to the ad. When Antti was told that the girls were only 11 and 14 years old, he replied that he had a fantasy to engage in sex acts with very young children. Antti then described in detail the sexual acts he intended to perform with the two young girls.
During subsequent on-line exchanges between the defendant and an undercover agent, Antti indicated that he would be traveling to Georgia from Chattanooga, Tenn. He agreed to meet the undercover agent and both girls at the Econolodge in Chickamauga, Ga. On the afternoon of June 8, 2012, Antti drove to the Econolodge in his gray BMW and was arrested. Agents recovered two boxes of condoms from his vehicle.Antti, 41, of Chattanooga, Tenn., has been sentenced by United States District Judge Robert L. Vining, Jr., to 15 years in prison today, followed by 15 years of supervised release. He was convicted of these charges on April 18, 2013, upon his plea of guilty. The defendant will be required to register as a sex offender when he is released from prison.
This case was investigated by the Federal Bureau of Investigation, the Rossville Police Department, the Murray County Sheriff’s Office, and the Walker County Sheriff’s Office.
Assistant United States Attorney Suzette A. Smikle prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney's Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Charles City Man Pleads Guilty to Gun ChargesRead the Press Release
Randy Patrie, age 40, from Charles City, Iowa, pled guilty today in federal court in Cedar Rapids. Patrie was convicted of being a felon in possession of 22 firearms and two sawed-off shotguns.
In a plea agreement, Patrie admitted that, on May 2, 2013, he burglarized a federally licensed firearms dealer in rural Floyd, Iowa, stealing approximately 20 firearms. On July 4, 2013, officers searched Patrie’s house in Charles City, and found him in possession of all of the stolen firearms, along with a number of other firearms, including two sawed-off shotguns. Patrie has been convicted of the following felony offenses:
1. September 24, 1991, Attempted Burglary in the 2nd degree;
2. May 4, 1994, Felon in Possession of a Firearm;
3. May 28, 1996, Delivery of Methamphetamine; and
4. May 27, 2003, Burglary 3rd.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Patrie remains in custody of the United States Marshal pending sentencing. If the court finds that Patrie qualifies as an Armed Career Criminal based upon his prior convictions, Patrie faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life in prison without the possibility of parole, a $500,000 fine, $200 in special assessments, and eight years of supervised release following any imprisonment.The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Federal Bureau of Alcohol, Tobacco, Firearms and Explosive, the Iowa Division of Criminal Investigation, the Charles City Police Department, and the Floyd County Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-cr-2016.
Cairo Woman Sentenced to Prison for Tax-Related FraudsRead the Press Release
Monica D. Nicholson, 44, of Cairo, Illinois, was sentenced for conspiring with others to submit false income tax reruns to the Internal Revenue Service for fraudulent tax refunds and for conspiring to commit the unlawful use of means of identification of other persons, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Nicholson received a total sentence of one-hundred and five months in prison, followed by three years of supervised release, and was ordered to pay restitution totaling $283,688.
“The enormity of this theft most certainly justifies the sentence received.” noted United States Attorney Wigginton. “People who steal from the government are, in fact, stealing from every one of us – the law abiding citizens of the United States.”
Evidence showed that Nicholson participated in a scheme to help others to obtain payment of false refunds from the IRS by causing others to file false 2007, 2008, 2009, 2010, and 2011, federal income tax returns claiming refunds to which they knew they were not entitled. Nicholson solicited, instructed, and assisted others in falsely claiming federal income tax refunds through the submission of false federal income tax returns. Nicholson gathered others’ identifying information, claimed fraudulent dependents, and transmitted this information over the telephone to a tax return preparer located in Memphis, Tennessee. As part of this conspiracy, the participants or those whose names appear as taxpayers on the fraudulent income tax returns (the filers) were required to pay Nicholson between approximately $200 and $300 per tax return from the tax refund received. During the 2011 and 2012 tax filing seasons, approximately 50 federal income tax returns were filed. The total refunds claimed by the 50 tax returns were approximately $406,228. Of the federal tax returns filed, the IRS paid out approximately $283,688 in fraudulent tax refunds. Monica D. Nicholson purchased dependents’ Social Security numbers from the guardians and/or parents of the dependents for filers who did not have legitimate dependents. The typical fee was $1,000 per Social Security number and this fee was paid from the fraudulent income tax refund received from the IRS.
The investigation was conducted by the U.S. Postal Inspection Service and the Internal Revenue Service/Criminal Investigations. The prosecution was handled by Assistant United States Attorney Norman Smith.
If you suspect or know of an individual or company that is not complying with the tax laws, you may report this activity by contacting the local Internal Revenue Service/Criminal Investigation Office at (618) 622-2160 or by mailing information to: Internal Revenue Service, Fresno, CA 93888.
Buffalo Man Sentenced for Food Stamp FraudRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Riyadh Almadrahi, 35, of Lackawanna, N.Y., who was convicted of food stamp fraud, was sentenced by U.S. District Judge Richard J. Arcara to 15 months in prison and ordered to pay restitution in the amount of $143,700 to the United States Department of Agriculture.
Assistant U.S. Attorney Robert C. Moscati, who handled the case, stated that Almadrahi participated in the operation of a deli known as Zip's Food and Beverage at 896 Niagara Street in Buffalo. The defendant and others exchanged customer's food stamp benefits for cash in violation of the rules governing the food stamp program. In less than a two year period, Almadrahi acquired approximately $143,700 through these fraudulent transactions.
The sentencing is the result of an investigation on the part of Special Agents of the United States Department of Agriculture, Office of Inspector General; Special Agents of the Federal Bureau of Investigation under the direction of Acting Special Agent in Charge Steven L. Lanser; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero; and the New York State Police, Special Investigations Unit, under the direction of Lieutenant Joseph Scioli.Brooklyn Resident Pleads Guilty in Connection with $13 Million Kickback and Health Care Fraud SchemeRead the Press Release
A Brooklyn, N.Y., resident pleaded guilty today for his role as a patient recruiter in a $13 million kickback and health care fraud scheme, the fourth defendant to plead guilty in the scheme based at the Cropsey Medical Care PLLC clinic in Brooklyn.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Loretta E. Lynch of the Eastern District of New York; Assistant Director in Charge George Venizelos of the FBI’s New York Field Office; and Special Agent in Charge Thomas O’Donnell of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG) made the announcement.
Gregory Konoplya, 57, pleaded guilty before U.S. Magistrate Judge Roanne Mann of the Eastern District of New York to one count of conspiracy to pay and receive illegal health care kickbacks. At sentencing before U.S. District Judge Nina Gershon, scheduled for Dec. 4, 2013, Konoplya faces a maximum penalty of five years in prison.
Court documents state that Konoplya, working through an ambulette company in Brooklyn, recruited patients to attend Cropsey Medical. An ambulette is a vehicle that is licensed by New York State’s Medicaid program to transport beneficiaries to and from medical facilities when such transportation is medically necessary. From 2009 to 2012, Konoplya paid employees of Cropsey Medical a per beneficiary cash kickback so that Cropsey Medical would accept Konoplya’s beneficiaries as patients and so that Konoplya’s ambulette company could bill Medicaid for the transportation of beneficiaries to and from Cropsey Medical. Once Konoplya’s beneficiaries were transported to Cropsey Medical, they were paid cash kickbacks to induce them to continue to attend the clinic and to receive medically unnecessary physical therapy, diagnostic testing and other services. Such purported medical services were then billed by Cropsey Medical to Medicare and Medicaid.
According to court documents, from approximately November 2009 to October 2012, Cropsey Medical submitted more than $13 million in claims to Medicare and Medicaid, seeking reimbursement for a wide variety of fraudulent medical services and procedures, including physician office visits, physical therapy and diagnostic tests.
The case was investigated by the FBI and HHS-OIG and brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. The case is being prosecuted by Fraud Section Trial Attorney Sarah M. Hall and Assistant U.S. Attorneys Shannon Jones and Ilene Jaroslaw of the Eastern District of New York.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Brooklyn Resident Pleads Guilty in Connection with $13 Million Kickback and Health Care Fraud SchemeRead the Press Release
BROOKLYN, NY – Brooklyn resident Gregory Konoplya, 57, pleaded guilty today in federal court in the Eastern District of New York to conspiracy to pay and receive illegal health care kickback payments, in connection with his role in a $13 million health care fraud scheme. Konoplya is the fourth defendant to plead guilty in connection with the scheme, which was based at the Cropsey Medical Care PLLC clinic in Bensonhurst, Brooklyn.
Today’s guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Mythili Raman, Acting Assistant Attorney General of the Justice Department’s Criminal Division; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; and Thomas O’Donnell, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG).
“Gregory Konoplya tried to take taxpayers for a ride with his fraudulent ambulette service,” stated United States Attorney Lynch. “He used illegal cash kickbacks to recruit Medicaid beneficiaries to obtain medical services, including rides in his ambulettes, which the beneficiaries did not need. Konoplya is the latest defendant to be convicted in connection with the government’s ongoing investigation of the Cropsey Medical Care clinic, which submitted more than $13 million in fraudulent claims to Medicare and Medicaid. We will continue to do our part to root out health care fraud to help protect the integrity of Medicare and Medicaid.” U.S. Attorney Lynch extended her grateful appreciation the Federal Bureau of Investigation and the Department of Health and Human Services, Office of Inspector General for their work on the investigation.
Konoplya pleaded guilty before U.S. Magistrate Judge Roanne Mann of the Eastern District of New York. At sentencing, Konoplya faces a maximum penalty of five years in prison, a fine of over $850,000, restitution of up to $429,000 and forfeiture of up to the same amount, $429,000.
According to court documents, from 2009 to 2012, Konoplya, working through an ambulette company in Brooklyn, recruited patients to attend a Brooklyn clinic called Cropsey Medical Care PLLC. An ambulette is a vehicle licensed by New York State’s Medicaid program to transport beneficiaries to and from medical facilities when such transportation is medically necessary. Konoplya paid employees of Cropsey Medical a per-beneficiary cash kickback so that Cropsey Medical would accept Konoplya’s beneficiaries as patients and Konoplya’s ambulette company could bill Medicaid for the transportation of beneficiaries to and from Cropsey Medical. Once Konoplya’s beneficiaries were transported to Cropsey Medical, they were paid cash kickbacks to induce them to continue to attend the clinic and receive medically unnecessary physical therapy, diagnostic testing and other services. Such purported medical services were then fraudulently billed by Cropsey Medical to Medicare and Medicaid.
According to court documents, from approximately November 2009 to October 2012, Cropsey Medical submitted more than $13 million in claims to Medicare and Medicaid, seeking reimbursement for a wide variety of fraudulent medical services and procedures, including physician office visits, physical therapy and diagnostic tests.
The case was investigated by the FBI and HHS-OIG, brought as part of the Medicare Fraud Strike Force, and supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. The case is being prosecuted by Trial Attorney Sarah M. Hall and Assistant U.S. Attorneys Shannon Jones and Ilene Jaroslaw of the Eastern District of New York.
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Bolivian Police Officer Arrested on Extortion ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Vernot Foret, Director Field Operations, U.S. Customs and Border Protection (CBP), Miami Field Office, and Richard M. Blom, Chief, Doral Police Department, announce the arrest of defendant Francisco Mario Ormachea Aliaga, 42, of Bolivia, on a criminal complaint charging him with traveling in interstate commerce with the intent to promote, manage, establish, carry on, and facilitate an unlawful activity, that is, extortion, in violation of Florida Statute section 836.05, and Title 18, United States Code, Section 1951(a), and thereafter performing and attempting to perform an act to promote, manage, establish and carry on, and to facilitate the promotion, management, establishment, and carrying on of such unlawful activity, in violation of Title 18, United States Code, Section 1952(a)(3). Ormachea made an initial appearance before U.S. Magistrate Judge Barry L. Garber on Tuesday, September 3, 2013, and is scheduled to be arraigned on September 17, 2013.
According to the allegations in the complaint, the FBI was contacted by a Bolivian businessman with initials “H.R.” on August 29, 2013. H.R. told the FBI that someone who identified himself as “the Colonel” had contacted H.R. to request a meeting in the United States. Subsequent investigation revealed that the caller, who had referred to himself as “the Colonel,” was Ormachea.
On August 29, 2013, Ormachea departed La Paz, Bolivia on a commercial flight to Lima, Peru, and then flew on another commercial flight to Miami International Airport. At Miami International Airport, Ormachea presented a valid Bolivian passport containing a valid United States tourist visa to United States Customs and Border Protection, who admitted him into the United States.
On August 30, 2013, H.R. met with Ormachea. The FBI monitored and recorded this meeting. During the meeting, Ormachea discussed the issues surrounding the criminal case against H.R. in Bolivia. Ormachea offered to dispose of the criminal charges pending against H.R. in Bolivia for a fee of $30,000. Ormachea agreed to take a payment of $10,000 immediately and receive the remainder of the payment later.
On Saturday, August 31, 2013, H.R. met with Ormachea again. The FBI monitored and recorded this meeting. During the course of the meeting, Ormachea stated that, in exchange for $30,000, he would drop the charges against H.R. and charge someone else instead. If, however, H.R. did not pay, Ormachea said that he would pursue H.R.’s arrest in the United States, extradition to Bolivia, and prosecution there. H.R. gave Ormachea $5,000 in previously-recorded bills as an initial payment towards the $30,000 required to resolve the charges against him. After the meeting, Ormachea departed by car.
FBI surveillance teams in coordination with local law enforcement conducted a traffic stop of Ormachea shortly thereafter. Ormachea was detained and $5,000 was recovered from his person. A review of the seized U.S. currency revealed that it matched the previously recorded bills.
Law enforcement officials interviewed Ormachea at the Miami Field Office of the FBI. After receiving and waiving his Miranda warnings in writing, Ormachea acknowledged meeting with H.R. on two occasions but denied attempting to extort H.R. Ormachea acknowledged that he is a member of the Bolivian National Police Corps, but stated that he was not traveling in his official capacity as a diplomat of Bolivia.
Mr. Ferrer commended investigative efforts of the FBI, ATF, CBP and the Doral Police Department. This case is being handled by Assistant U.S. Attorneys John Byrne and Jaime Raich.
A complaint is merely an accusation and a defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Bismarck Man Convicted of Felon in Possession ChargeRead the Press Release
BISMARCK– U.S. Attorney Timothy Q. Purdon announced that on Sept. 6, 2013, Dylan A. Romero, 34, Bismarck, N.D., was found guilty by a federal jury on a charge of possession of firearm by a convicted felon.
In August 2012, law enforcement officials received information that a prohibited person, known as “Twist,” was interested in obtaining a handgun. “Twist,” identified as Dylan Romero, contacted an undercover ATF agent and arrangements were made for Romero to obtain a handgun and $600 for an ounce of cocaine. The undercover ATF agent met with Romero on Sept. 26, 2012, in Bismarck. Romero provided the agent with an ounce of fake cocaine and Romero took the gun, which was locked and disabled. Law enforcement officials immediately arrested Romero.
Romero was prohibited from possessing a firearm due to eight felony convictions, including the following: 1998 burglary, 2001 possession of controlled substance (cocaine), 2009 delivery of imitation controlled substance, and 2009 possession of marijuana with intent to deliver.
The charge of possession of firearm by a convicted felon carries a statutory maximum penalty of 10 years in federal prison and a $250,000 fine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Metro Area Narcotics Task Force, the Bismarck Police Department, the Burleigh County Sheriff’s Office, the North Dakota Parole and Probation Office, and the North Dakota Bureau of Criminal Investigation.
Sentencing for Romero has been scheduled for Dec. 16, 2013, in U.S. District Court in Bismarck, N.D., at 9:45 a.m.
Assistant U.S. Attorney David Hagler is prosecuting the case.
Bergen County, N.J., Loan Officer Pleads Guilty to Role in $2 Million Mortgage FraudRead the Press Release
CAMDEN, N.J. – A loan officer admitted today to conspiring to defraud financial institutions as part of an approximately $2 million mortgage fraud scam that used phony documents and “straw buyers” to make illegal profits on town homes and other real estate in three states, U.S. Attorney Paul J. Fishman announced.
Raffi Oghlian, 38, of Westwood, N.J., pleaded guilty today, before U.S. District Judge Jerome B. Simandle in Camden federal court, to an information charging him with one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court: Oghlian worked for a period in 2008 as a loan officer at MJS Lending Inc., in Hasbrouck Heights, N.J., which was in the business of making mortgage loans.
During his guilty plea proceeding, Oghlian admitted that he conspired with others to profit from the sale of over-priced homes in Newark, N.J., and Atlanta, as well as properties in Naples, Fla., owned by developers seeking to sell off inventory. He acknowledged that as part of the conspiracy, he and his conspirators obtained mortgage loans for unqualified borrowers using fraudulent loan applications and other documents.
Oghlian’s conspirators recruited “straw buyers” to purchase those properties at the inflated rates. The straw buyers had good credit scores but lacked the financial resources to qualify for mortgage loans. Oghlian created false and fraudulent loan applications that contained false information, concerning, among other things, the straw buyers’ employment, income, assets and intended use of the properties. Oghlian also admitted creating false documents to support the phony loan applications.
Once the loans were approved and the mortgage lenders sent the loan proceeds in connection with real estate closings, Oghlian’s co-conspirators took a portion of the proceeds, having funds wired or checks deposited into various accounts they controlled. They also distributed a portion of the proceeds to other members of the conspiracy for their respective roles. For his part on the conspiracy, Oghlian earned fees as the loan officer of the seven transactions in which he participated.
In all, the conspiracy caused approximately $2 million to be released from MJS Lending.
The wire fraud conspiracy charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for March 13, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and IRS – Criminal Investigation, Newark field office, under the direction of Special Agent in Charge Shantelle P. Kitchen, for their roles in the ongoing investigation.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden.
13-359Defense counsel: John Klotz Esq.,Clifton, N.J.
Oghlian Information
Austin Horse Trainer Sentenced to Federal Prison in Multi-Million Dollar Money Laundering Conspiracy Involving Los Zetas Drug Trafficking Proceeds, Extortion, and BriberyRead the Press Release
In Austin, Eusevio Maldonado Huitron, a 50-year-old horse trainer residing in Austin was sentenced this morning to 97 months in federal prison followed by three years of supervised release for his role in a complex conspiracy to launder millions of dollars in illicit Los Zetas drug trafficking proceeds to purchase, train, breed, and race American quarter horses in the United States announced United States Attorney Robert Pitman, FBI Special Agent in Charge Armando Fernandez, Richard Weber, Chief, Internal Revenue Service Criminal Investigation and DEA Special Agent in Charge Javier Pena.
United States District Judge Sam Sparks this morning also sentenced co-defendant Raul Ramirez, age 21 of El Paso, TX, to one year plus one day in federal prison after pleading guilty prior to trial to the conspiracy charge. Other co-defendants who pleaded guilty to various federal charges prior to trial received probation sentences today including: Zulema Trevino, age 39 (3 years); Alexandra Garcia Trevino, age 22, of Oceanside, CA, (2 years); 33-year-old horse trainer Adan Farias of Norco, CA, (3 years); and 29–year-old Felipe Alejandro Quintero of Los Alamitos, CA, (3 years). Judge Sparks also ordered that Farias, Quintero and Ramirez each pay a $3,600 fine. Sentencing for 27-year-old Carlos Miguel Nayen Borbolla of Santa Anna, CA, was postponed.
Yesterday, Judge Sparks sentenced 46-year-old Jose Trevino Morales of Balch Springs, TX, and Francisco Colorado Cessa, a 52-year-old Veracruz, Mexico businessman, each to 240 months in federal prison; and, Fernando Solis Garcia, a 30-year-old horse trainer and purchasing agent from Ruidoso, NM, to 160 months in federal prison followed by three years of supervised release for their roles in the money laundering scheme. Jose Trevino Morales is the brother of purported Los Zetas leaders, Miguel Trevino Morales (aka “40”) and Oscar Omar Trevino Morales (aka “42”).
On May 9, 2013, a federal jury convicted Jose Trevino Morales, Francisco Colorado Cessa, Fernando Solis Garcia, and Eusevio Maldonado Huitron of one count of conspiracy to commit money laundering. Evidence presented during trial revealed that Los Zetas are a powerful drug cartel based in Mexico and generate multi-million dollar revenues from drug trafficking. Since 2008, Miguel and Oscar Trevino Morales would direct portions of the bulk cash generated from the sale of illegal narcotics to Jose Trevino and his wife, Zulema Trevino, for purchasing, training, breeding and racing American quarter horses in the United States.
Testimony also revealed a shell game by the defendants involving straw purchasers and transactions worth millions of dollars in New Mexico, Oklahoma, California and Texas to disguise the source drug money and make the proceeds from the sale of quarter horses or their race winnings appear legitimate. Furthermore, the defendants implemented a scheme to structure cash deposits in amounts under $10,000 in order to circumvent mandatory bank reporting requirements.
Over 400 quarter horses (which were seized by federal authorities in June 2012 as part of the above-mentioned money laundering operation) have been sold for approximately $9 million. Most of the horses were sold at Heritage Place Auction Facility in Oklahoma City, Oklahoma in the past year including A Dash of Sweet Heat, which sold for $1 million. Approximately 100 broodmares were sold prior to auction for approximately $35,000. The federal government still retains possession of five quarter horses, including Tempting Dash, winner of the Dash for Cash at Lone Star Park race track in Grand Prairie, Texas, on October 24, 2009; Mr. Piloto, $1 million All American Futurity winner at Ruidoso Downs on Labor Day 2010; Dashin Follies; Separate Fire; Y516, a yearling seized in Lexington, OK; and four embryos transferred from donor mares, Dashin Follies and Separate Fire.
U.S. Attorney Pitman noted that the proceeds from the sale of these quarter horses are being held in escrow pending the resolution of a forfeiture action. The Government also seeks the forfeiture of real property in Lexington, OK; farm and ranch equipment located at that site; and funds contained in multiple bank accounts allegedly used in the defendants’ scheme. The Government also seeks a monetary judgment in the amount of $60 million representing property involved in and derived from the conspiracy.
Authorities continue to seek the apprehension of seven co-defendants in this case including purported leaders of the Los Zetas, Miguel Trevino Morales (aka “40”) and his brother, 39-year-old Oscar Trevino Morales (aka “42”), as well as 32–year-old Victor Manuel Lopez, 41-year-old Sergio Guerrero Rincon, 41-year-old Luis Gerardo Aguirre, Erick Jovan Lozano Diaz and Gerardo Garza Quintero.
This investigation was conducted by agents with the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation and the Drug Enforcement Administration with assistance from the United States Marshals Service, Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI) and U.S. Customs and Border Patrol, as well as local law enforcement agents in Irving, TX, Lorena, TX, Bruceville-Eddy, TX, Fort Worth, TX and Laredo, TX. The investigation received assistance from the Texas Army National Guard, Cleveland County (OK) Sheriff’s Office, and the Oklahoma and New Mexico Racing Commissions. The U.S. Attorney’s Office for the Eastern District of Texas prosecuted several members of the Los Zetas drug cartel on drug trafficking charges related to this conspiracy and provided substantial assistance to this investigation. The U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) provided assistance with the forfeiture action in this case.
Andria March Sentenced in Syracuse to ProbationRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced the imposition of sentence in United States District Court in Syracuse on Andria March for the offense of bankruptcy fraud.
Andria March, 33, of North Tonawanda, NY pled guilty in April, 2013, to a single count of bankruptcy fraud, relating to a bankruptcy petition she had filed in the federal courts in Syracuse in 2009. Today in Syracuse, Senior District Judge Frederick J. Scullin sentenced the defendant to a term of probation of two years, and required her to perform 50 hours of community service as a condition of that probation.
As part of her plea, the defendant acknowledged that, in 2009 when she filed a bankruptcy petition in Syracuse, NY, she had intentionally failed to disclose money that she had used to purchase a pre-paid lease on a 2010 Mercedes Benz 300. Prior to sentencing, the defendant had paid into the bankruptcy court the money that she had previously failed to disclose.
This case is the result of an investigation by the Federal Bureau of Investigation in Syracuse, NY. Further questions or inquiries may be directed to Executive Assistant United States Attorney John Duncan, at (315) 448-0672.
Anchorage Men indicted in Federal Drug Trafficking ConspiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that two defendants were arraigned this week in Anchorage on charges involving a drug trafficking conspiracy and possession of methamphetamine with intent to distribute. Albert Diaz Gumataotao, III, 24, of Anchorage, Alaska, and David Alan Gonzales, 54, of Anchorage, Alaska, are charged in the two-count indictment. According to information presented to the court, Gumataotao and Gonzales allegedly possessed 52 grams of pure methamphetamine on March 28, 2013.Special Assistant U.S. Attorney Erin W. Bradley, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of life in prison, a fine of ten million dollars, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Ms. Loeffler commends the U.S. Postal Inspection Service and the Anchorage Police Department for the investigation of this case. SAUSA Bradley is a prosecutor in the U.S. Attorney’s Office funded by the Municipality of Anchorage for the purpose of prosecuting gang-related and violent crime cases.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
5 September 2013
Williams and Lavan SentencingRead the Press Release
BATON ROUGE, LA – Acting United States Attorney Walt Green announced that SONYA LEWIS WILLIAMS, 47, of Baton Rouge, Louisiana, was sentenced to 37months for her convictions on counts of health care fraud and money laundering.
The indictment arose from a health care fraud scheme involving two companies known as Fusion Services, L.L.C. (“Fusion”), and Grace Social Services, L.L.C. (“Grace”), which operated in Alexandria, Louisiana and the surrounding areas. WILLIAMS established the two companies for the purpose of using unlicensed social workers to visit Medicare beneficiaries in their homes several times a week to perform case management, counseling, and social interaction services. WILLIAMS submitted false claims for reimbursement from Medicare indicating that the beneficiaries had received individual, face-to-face psychotherapy from a licensed clinical social worker when no such services had been provided. Medicare paid Fusion and Grace approximately $349,715 as a result of the billings. Much of the profits were transferred from company bank accounts into WILLIAMS’ personal accounts.
In addition to the term of imprisonment, Chief Judge Brian A. Jackson ordered restitution in the amount of $1,223,471 to the Department of Health and Human Services/Centers for Medicare and Medicaid Services. This amount included the total profits from Fusion and Grace, as well as two identical companies that WILLIAMS operated in the Baton Rouge area, Alpha Social Services, L.L.C., and Breitling Investment Company, L.L.C.
This is the second sentencing involving WILLIAMS’ companies. On August 15, 2013, LILLIE LAVAN, age 57, of Pineville, Louisiana, was sentenced by Judge Jackson to 27 months imprisonment, followed by one year of supervised release, for her conviction on one count of health care fraud. LAVAN was a Licensed Clinical Social Worker who worked with Fusion in the Alexandria area. LAVAN participated in creating false and misleading medical records for Fusion indicating that Medicare beneficiaries had received individual, face-to-face psychotherapy when, in fact, no such services had been provided. Judge Jackson also ordered LAVAN to pay restitution in the amount of $115,010 to the Department of Health and Human Services/Centers for Medicare and Medicaid Services.
Acting United States Attorney Walt Green. stated, “Those who abuse our federal health care programs through fraud and corruption should understand our commitment to bring them to justice.”
Department of Health and Human Services Special Agent-in-Charge Mike Fields said, “Our office is committed to the relentless pursuit of those whose sole interest in health care is to raid the Medicare Trust Fund to satisfy their own greed.”
FBI Special Agent-in-Charge Michael Anderson said, “The continued close collaboration of federal law enforcement partners will ensure that justice will be fully served upon those individuals who seek to defraud the health care system.”
“Sonya Williams was sentenced today for her money laundering activities which were a result of a health care scheme,” said Gabriel Grchan, Special Agent-in-Charge IRS Criminal Investigation. “IRS will continue to work with the Health Care Fraud Strike Force to unravel such complex financial crimes and assist in the prosecution of those individuals who engage in illegal business practices.”
The investigation was conducted by the U.S. Department of Health and Human Services’ Office of Inspector General, the Federal Bureau of Investigation, and AdvanceMed, the Medicare Program Safeguard Contractor which assists with health care fraud investigations. The case was prosecuted by Assistant United States Attorneys Catherine M. Maraist and Leetra Harris.
Waterbury Man Sentenced to 10 Years in Federal Prison for Firearms ConvictionRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that FRANCISCO TELLADO, 37, of Waterbury, was sentenced today by United States District Judge Robert N. Chatigny in Hartford to 120 months of imprisonment, followed by six years of supervised release, for illegally possessing a firearm and for violating the conditions of his supervised release from a previous federal conviction.
According to court documents and statements made in court, on August 24, 2012, TELLADO used a 9 millimeter handgun to shoot his brother and his cousin in Naugatuck. He was subsequently apprehended in Waterbury.
TELLADO has prior state felony convictions for criminal possession of a firearm and possession of narcotics, and a prior federal conviction for conspiring to distribute crack cocaine. He was released from federal prison on November 1, 2011 and was serving a six-year term of supervised release at the time of the shootings.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On January 23, 2013, TELLADO pleaded guilty to one count of possession of a firearm by a convicted felon and admitted to having violated the terms of his supervised release.
Judge Chatigny sentenced TELLADO to 96 months of imprisonment for illegally possessing a firearm and a consecutive 24 months of imprisonment for violating his supervised release.
TELLADO was also charged with state offenses as a result of these shootings and, in February 2013, was sentenced to 10 years of incarceration. Judge Chatigny ordered the 10-year federal sentence to be served concurrent with the state sentence.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Waterbury Police Department and the Naugatuck Police Department. This case was prosecuted by Assistant United States Attorney Robert M. Spector.
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(203) 821-3722 [email protected]Two Men in Unrelated Cases Sentenced to Federal Prison for Child Exploitation CrimesRead the Press Release
DENVER – Two men were sentenced this week to serve federal prison sentences for child exploitation crimes, U.S. Attorney John Walsh and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Kumar Kibble announced. The cases of the two men were unrelated.
Michael Burch, age 31, of Seattle, Washington, was sentenced by Senior U.S. District Court Judge Wiley Y. Daniel to serve 121 months in federal prison, followed by 10 years on supervised release, for the crime of travel with intent to engage in illicit sexual conduct, namely engaging in a sex act with a person under 18 years of age. Burch appeared at the sentencing hearing in custody, and was remanded at the hearing’s conclusion.
According to the stipulated facts in Burch’s plea agreement, after numerous internet chats and several phone calls, on August 22, 2012 Burch left Seattle, Washington by commercial bus, arriving in Grand Junction at 3:20 a.m. on August 24, 2012. He thought he was meeting a single mother with two girls, one age 4 and the other age 14. In fact, the single mother he was communicating with was actually an undercover agent. Once Burch arrived in Grand Junction he was placed under arrest.
Paulo dos Santos Silva, Jr., age 38, and a citizen and national of Brazil, was also sentenced by Senior U.S. District Court Judge Wiley Y. Daniel to serve 148 months in federal prison, followed by 5 years on supervised release, for the crime of attempted coercion and enticement. Silva appeared at his sentencing hearing in custody, and was remanded at the hearing’s conclusion.
According to the stipulated facts in Silva’s plea agreement, after multiple sexually explicit internet chats and a phone call, on February 15, 2012, Silva flew from Brazil to Grand Junction to meet a single mother with two girls, ages 4 and 14. In fact, the single mother was actually an undercover agent. At approximately 11:00 a.m., after arriving at the Grand Junction Airport, Silva was arrested.
“Anyone who travels great distances to have sex with children is an especially dangerous predator,” said Kumar C. Kibble, special agent in charge of HSI Denver. “To protect the most innocent and vulnerable members of our communities, our special agents in Homeland Security Investigations take an extremely active role to identify and ultimately remove these predators from society.”
These cases were investigated by ICE Homeland Security Investigations (HSI).
Burch was prosecuted by Assistant U.S. Attorney Valeria Spencer. Silva was prosecuted by Assistant U.S. Attorney Alecia Riewerts Wolak.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit http://www.justice.gov/psc/ For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
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Two Indicted in $275 Million Investment Fraud Scheme Involving the Sale of Medical Accounts Receivable to Hedge Funds and Other InvestorsRead the Press Release
Guilty Pleas of Two Conspirators Also Unsealed Today
Baltimore, Maryland – A federal grand jury has indicted Richard Shusterman, age 50, of Highland Beach, Florida, and Jonathan E. Rosenberg, age 44, of West Orange, New Jersey, on charges of conspiracy and wire fraud, in connection with a scheme to defraud equity investors and asset-based lenders in medical accounts receivable of more than $275 million. The indictment was returned on September 4, 2013 and unsealed today upon the arrest of the defendants.
The guilty pleas of Robert Feldman, age 65, of Beach Haven, New Jersey and Douglas A. Kuber, age 53, of Livingston, New Jersey, were also unsealed today. Feldman and Kuber pleaded guilty to conspiracy to commit wire fraud on September 3, 2013 and October 11, 2012, respectively.
The indictment and guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
“The indictment alleges that the defendants perpetrated a brazen and complex Ponzi scheme that defrauded investors of more than $275 million,” said U.S. Attorney Rod J. Rosenstein.
According to the 10 count indictment, Richard Shusterman, was a shareholder and president of International Portfolio, Inc. (IPI). Robert Feldman was part owner of IPI, and was also the president of United Consulting, Inc. Shusterman and Feldman represented that IPI was a company that had experience in the field of medical accounts receivable, including their purchase, valuation, collection, and resale. Beginning on June 21, 2006, Shusterman and Feldman, through United Consulting and IPI, engaged in the business of buying and selling consumer debt, including medical debt portfolios.
According to the indictment, Jonathan E. Rosenberg and Douglas A. Kuber, operated Account Receivable Services, LLC (ARS). ARS invested in medical accounts receivable purchased from IPI using funds borrowed from investors interested in asset-based lending. Rosenberg was also president of two other companies that recruited investors for medical accounts receivable portfolios purchased from IPI.
From December 2006 through June 2008, IPI paid more than $25 million to purchase over $4.1 billion in medical accounts receivable, comprising more than 3,872,514 past due patient accounts which the hospitals and other entities selling the accounts had been unsuccessful in collecting. Beginning in June of 2007, Shusterman, Rosenberg, Feldman, and Kuber began promoting an investment model to individual investors and investment fund managers.
To implement the investment model, the conspirators allegedly agreed that Shusterman, through IPI, would batch accounts receivable from IPI’s inventory into discrete debt portfolios with specified total outstanding account balances. These portfolios would then be offered for sale to investors. In addition, Shusterman and IPI would manage all the collection efforts for each debt portfolio IPI sold.
The indictment alleges that Shusterman, Rosenberg, Kuber and Feldman made fraudulent representations and omissions regarding purchase prices, collection results, and resale values of IPI medical debt portfolios in order to persuade investors to invest in those portfolios. The indictment alleges that Shusterman, Rosenberg, Kuber and Feldman negotiated and agreed upon two different purchase prices for each IPI debt portfolio that hedge funds and other investors financed on behalf of ARS. The conspirators set higher purchase prices for the IPI debt portfolios ARS financed through hedge funds and other investors. IPI agreed to kickback the loan proceeds in excess of the true purchase prices to Rosenberg and Kuber. The defendants allegedly characterized the kickbacks as a refund for any unqualified accounts in the portfolio, such as when a debtor was deceased or bankrupt. The indictment alleges that between June 2007 and March 2009, Shusterman paid Kuber and Rosenberg kickbacks totaling approximately $8,318,718.
Further, the indictment alleges that in order to induce existing investors to maintain and increase their participation in the investment scheme and to persuade new investors to join, Shusterman, Rosenberg, Feldman and Kuber falsely represented the actual amount of collections and rates of liquidation of IPI debt portfolios. In fact, because IPI debt portfolios did not generate sufficient collections to meet the minimum debt service payments due to the investors, Shusterman, Rosenberg, Feldman, and Kuber allegedly caused IPI to wire money disguised as “direct payments” to ARS entities to fund interest payments owed to hedge funds and other investors who loaned money for the acquisition of IPI debt portfolios. Specifically, the indictment alleges that between July 2008 and March 2010, the defendants made false and misleading collection reports stating that a total of approximately $56,180,158 in “direct payments” were collected during the liquidation of IPI debt portfolios, in order to deceive hedge funds such as Platinum Partners and other investors. The indictment alleges that in February 2010, Shusterman, Rosenberg, Feldman and Kuber attempted to induce Eton Park Capital Management to invest by portraying four portfolios financed by Platinum as receiving approximately $28.7 million in collections. In fact, the total net collections were approximately $2 million.
Finally, in order to induce investors to buy and/or maintain their investment positions in IPI debt portfolios, and to further conceal substantially lower than projected collection results, Shusterman, Rosenberg, Feldman and Kuber fraudulently repurchased and resold investors’ IPI debt portfolios at artificially inflated prices that neither corresponded to a particular debt portfolio’s actual collection results, nor to an asking price from a purchaser in the debt-buying industry. According to the indictment, Shusterman, Rosenberg, Feldman, and Kuber represented to investors that the IPI debt portfolios sold to them or used as collateral were comprised of medical accounts receivable that IPI had purchased directly from hospitals and medical providers after those institutions had exhausted their efforts to collect from their debtor patients. In fact, the indictment alleges that Shusterman and Feldman intentionally sold to some investors IPI debt portfolios that IPI had previously sold to and repurchased from a different investor, and sometimes multiple investors.
The indictment also seeks the forfeiture of $278,105,193, alleged to be the proceeds of the scheme.
Shusterman and Rosenberg each face a maximum sentence of 20 years in prison for the conspiracy and for each of nine counts of wire fraud. Shusterman was arrested in Baltimore and is scheduled to have his initial appearance in U.S. District Court in Baltimore today at 3:30 p.m. Rosenberg was arrested in Newark, New Jersey and is expected to have his initial appearance in U.S. District Court there today.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Robert Feldman and Douglas Kuber, each pleaded guilty to conspiracy to commit wire fraud and face a maximum sentence of 20 years in prison. Feldman is scheduled for sentencing on December 3, 2013. No sentencing date has been set for Kuber.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the FBI and HSI Baltimore for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Martin J. Clarke and Joyce K. McDonald, who are prosecuting the case.
St. Cloud Man Pleads Guilty to Robbing TCF BankRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 36-year-old St. Cloud man pleaded guilty to robbing the TCF Bank located at 1001 Fourth Street in St. Cloud. Fehd El Mehdi Kourima specifically pleaded guilty to one count of bank robbery. Kourima, who was indicted on June 10, 2013, entered his plea before United States District Judge Paul A. Magnuson.
In his plea agreement, Kourima admitted that on May 5, 2013, he stole approximately $1,000. At approximately 12:30 p.m. that day, he entered the bank, which is located inside a grocery store, approached a teller, and presented a note that read, “Put as many $100 bills as you can into this envelope in fifteen seconds and no one gets hurt.” After receiving the money, Kourima left the premises and ran to a vehicle parked outside. Kourima was arrested later that day.
For his crime, Kourima faces a potential maximum penalty of 20 years in federal prison. Judge Magnuson will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the St. Cloud Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorneys Katharine T. Buzicky and Nathan P. Petterson.South Jersey Man Sentenced to 97 Months in Prison for Multi-Million-Dollar, Internet-Based Tax Fraud ConspiracyRead the Press Release
WILMINGTON, Del. – Gary Crawford, age 42, of Bridgeton, New Jersey, was sentenced to 97 months in prison today for his role in a conspiracy to file hundreds of false federal income tax returns seeking First Time Home Buyer Credits for the 2008 tax year. Crawford also was order to pay $1,020,388.00 in restitution to the United States Treasury, and was sentenced to three years of supervised release, which will commence following his prison term.
According to statements made at today’s hearing and documents filed in court, Crawford and his co-conspirators used at least 47 Internet service accounts to file at least 358 fraudulent returns seeking the payment of $3,060,770 in tax refunds which were transferred into at least 30 bank accounts and more than 100 prepaid debit card accounts. All of the Internet service accounts and virtually all of the financial accounts were in names other than Crawford’s. The United States Treasury actually paid out $2,265,254 in refunds on 293 fraudulent returns filed by Crawford and his co-conspirators.
The tax fraud scheme was uncovered in 2009, when the IRS’s Fraud Detection Center flagged a large number of false, electronically filed 2008 personal income tax returns seeking First Time Home Buyer Credits by individuals claiming to have purchased homes in Salem and Penns Grove, New Jersey. The First Time Home Buyer Credit permitted a taxpayer to receive a credit of up to $8,000 if the individual purchased a qualifying home between April 8, 2008 and December 1, 2009. To receive the credit, the taxpayer must have been employed and have owed taxes against which the credit could be applied. The IRS confirmed that the individuals listed in the fraudulent returns had not actually purchased homes and, in many cases, had not been employed by the companies listed in their tax returns during 2008.
Following the sentencing hearing, United States Attorney Charles M. Oberly, III, stated, Tax frauds, such as that committed by Gary Crawford, hurt all those who pay their taxes and claim legitimate refunds. Fortunately, the IRS has programs in place to flag schemes like Crawford’s. When identified, such criminal activity will be prosecuted by this office and incarceration sought whenever justified.”
IRS Criminal Investigation Special Agent in Charge Akeia Conner said, “Individuals who commit refund fraud and identity theft of this magnitude and with this degree of trickery, dishonesty and deceit, deserve to be punished to the fullest extent of the law. IRS Criminal Investigation and the United States Attorney's Office, remain vigilant in identifying, investigating and prosecuting those individuals who seek to undermine the integrity of the U.S. tax system.”
This case is being investigated by the Internal Revenue Service and is being prosecuted by Assistant United States Attorneys Edward J. McAndrew and Ilana H. Eisenstein.
Siranush Tulumdzhyan and La Medical Group, Inc. Sentenced for Conspiracy to Commit Health Care Fraud ViolationsRead the Press Release
SIRANUSH TULUMDZHYAN, age 28, of Van Nuys, CA, was sentenced today by U.S. District Court Judge Eldon Fallon for her role in a health care fraud scheme, announced U.S. Attorney Dana J. Boente. TULUMDZHYAN was sentenced to 3 years probation with 6 months in a half-way house. TULUMDZHYAN was ordered to pay restitution to Medicaid in the total amount of $31,589.
LA MEDICAL GROUP, INC., a Louisiana corporation that she operated as a medical clinic, also was also sentenced today to three 3 years supervised release. LA MEDICAL GROUP, INC. was ordered to pay restitution to Medicaid in the total amount of $494,268. The Government seized $269,057 from LA MEDICAL GROUP, INC.
According to the bill of information, the defendants participated in a criminal organization for the purpose of fraudulently billing Medicaid. Patients went to the medical clinic for medical tests that were not performed or medically necessary. Patients were moved between Metairie Health Care to LA MEDICAL to repeatedly perform the same unnecessary tests. Metairie Health care has already been sentenced for the same activity. According to the bill of information, if the patients refused the diagnostic tests at LA MEDICAL, prescriptions for narcotic drugs were withheld. Thereafter, bills for the unnecessary services were submitted to Medicaid. TULUMDZHYAN was the owner of LA MEDICAL and also an unlicensed and unqualified diagnostic technician, according to the bill of information.
The investigation was conducted by Special Agents of the Federal Bureau of Investigation; the U. S. Department of Health and Human Services, Office of Inspector General; and the Louisiana Department of Justice, Medicaid Fraud Control Unit. The case is being prosecuted by Assistant U. S. Attorney Patrice Harris Sullivan.
Sex Offender Who Used Soldier’s Identification SentencedRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that David P. Oswald, age 47, was sentenced to 140 months in prison today by Chief Judge Christina Reiss of the U.S. District Court in Rutland, Vermont. Oswald lived in Vermont for six years, from 2006 - 2012, as Bobby Lee Triplett, a U.S. Army Veteran from North Carolina. Oswald adopted the false identification in order to avoid his obligation to register as a sex offender after a 2005 conviction in Washington State for a sex assault on a child.
After Sgt. Triplett’s car was stolen in Washington State with his military identification in it, Oswald acquired the identification documents and moved to Vermont. In late 2006 he obtained from the Vermont Department of Motor Vehicles a non-driver’s photo identification card as Triplett, which he then used with other documents to obtain a U.S. Passport identifying him as Triplett. Living as Triplett in Williston, Vermont, Oswald obtained a voter registration card, befriended a retired police officer, purchased 10 firearms, acquired a collection of child pornography over the internet, and joined the Vermont State Guard.
In 2011 Oswald had a heart attack, and again posing as Sgt. Triplett, obtained approximately $50,000 worth of cardiac care at Fletcher Allen Health Care in Burlington. The hospital, believing that Oswald was U.S. Army Veteran Triplett, billed the U.S. Veteran’s Affairs. Meanwhile, Sgt. Triplett was on his fourth deployment to the Middle East with the Army. When he returned, he reported to the V.A. in 2012 that he had never been to Vermont. The ensuing investigation by Agent Will Nelson with the V.A.’s Office of Inspector General resulted in Oswald’s September, 2012 arrest in Jonesville, Vermont. Agents found a loaded semi-automatic pistol in his car, along with child pornography and multiple additional firearms in a camper in which he had been staying. When confronted by federal agents and U.S. Marshals, Oswald initially insisted that he was Triplett.
In Court today for sentencing on four federal felonies, Chief Judge Reiss observed that the offenses were particularly aggravated, as Oswald had, among other things, victimized an Army soldier “while he was defending our country” overseas. Chief Judge Reiss imposed a sentence of 140 months in prison, followed by a lifetime of supervised release. She also ordered over $50,000 in restitution to the V.A. and Fletcher Allen Health Care.
The case was investigated by the V.A. Office of Inspector General, the U.S. Marshal’s Service, and the Bureau of Alcohol, Tobacco and Firearms. The V.A. Police Department in White River Junction, Vermont also assisted. Oswald was represented by Assistant Federal Defender David McColgin of Burlington. The United States was represented by Assistant U.S. Attorney Bill Darrow.
Rochester Tax Preparer Pleads Guilty to Tax ChargesRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Jorge O. Laurido, 54, of Rochester, N.Y., pleaded guilty before U.S. District Judge Frank P. Geraci, Jr., to four counts of assisting in the preparation of false tax returns. Each charge carries a maximum penalty of three years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Marisa J. Miller, who is handling the case, stated that the defendant prepared and filed false income tax returns for tax filers in Rochester. Specifically, the defendant filed tax returns for the years 2007 through 2010 that falsely represented the taxpayers earned amounts of self-employment income. This allowed Laurido's clients to be eligible for larger Earned Income Credits. The false returns resulted in the taxpayers receiving larger refunds than they were entitled to. The Internal Revenue Service determined that the false tax returns prepared and filed by the defendant resulted in losses totaling $116,139.00.
Sentencing is scheduled for December 5th, 2013 at 4:00 p.m. before Judge Geraci.
The plea is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service - Criminal Investigation, under the direction of Special Agent In Charge Toni Weirach.Port Deposit Man Sentenced to 12 Years in Prison for Receipt of Child PornographyRead the Press Release
DVD Depicts Ragan Having Sex With a Boy
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Michael Dean Ragan, Jr., age 31, of Port Deposit, Maryland, yesterday to 12 years in prison followed by 35 years of supervised release for receipt of child pornography. Judge Hollander further ordered that upon his release from prison, Ragan will be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Brian Murphy of the United States Secret Service – Baltimore Field Office; and Colonel Marcus L. Brown, Superintendent of the Maryland State Police.
According to the plea agreement, on January 30, 2011, law enforcement seized Ragan’s laptop computer, desktop computer, camera, hard drive and other digital media during a search in an unrelated counterfeit currency investigation. Ragan later pleaded guilty to state counterfeit charges. Approximately 335 images and 17 videos of minors and prepubescent minors engaged in sexually explicit conduct, including acts of sadism, masochism of other depictions of violence, were found on the seized items.
In addition, a video on a DVD depicted Ragan engaged in sexually explicit conduct with a minor. The video was taken without the boy’s knowledge. Ragan also admitted to being an administrator on a website dedicated to viewing, sharing and distributing child pornography. Ragan received a video on May 26, 2010 depicting two minor males engaging in sex.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, U.S. Secret Service and Maryland State Police for their work in the investigation, and thanked the Maryland State Police for its assistance. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.
Owners of Home Health Companies and Patient Recruiter Plead Guilty in Miami for Role in $20 Million Health Care Fraud SchemeRead the Press Release
The owners and operators of several Miami home health care agencies and a patient recruiter pleaded guilty today in connection with a health care fraud scheme involving defunct home health care company Trust Care Health Services Inc. (Trust Care).
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office; Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami office; and Acting Special Agent in Charge Michael J. DePalma of the Internal Revenue Service—Criminal Investigation’s (IRS-CI) Miami Field Office made the announcement.
Roberto Marrero, 60; Sandra Fernandez Viera, 49; and Enrique Rodriguez, 59, all of Miami, pleaded guilty before U.S. Magistrate Judge Edwin G. Torres in the Southern District of Florida to conspiracy to commit health care fraud and conspiracy to receive and pay health care kickbacks.
Marrero and Fernandez Viera were owners and operators of Trust Care, a Miami home health care agency that purported to provide home health and physical therapy services to Medicare beneficiaries. Rodriguez worked as a patient recruiter on behalf of Trust Care and Marrero and Fernandez Viera.
According to court documents, Marrero and Fernandez Viera operated Trust Care for the purpose of billing the Medicare Program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
Marrero largely controlled Trust Care and, in light of that role, oversaw the schemes operating out of the company. Fernandez Viera’s primary role, among others, involved managing and supervising personnel at Trust Care. Both Marrero and Fernandez Viera were responsible for negotiating and paying kickbacks and bribes, interacting with patient recruiters, and coordinating and overseeing the submission of fraudulent claims submitted to the Medicare program.
Marrero, Fernandez Viera and their co-conspirators paid kickbacks and bribes to patient recruiters, including Rodriguez, in return for the recruiters providing patients to Trust Care for home health and therapy services that were medically unnecessary and/or not provided. Marrero, Fernandez Viera and their co-conspirators at Trust Care also paid kickbacks and bribes to co-conspirators in doctors’ offices and clinics in exchange for home health and therapy prescriptions, medical certifications and other documentation. Marrero, Fernandez Viera and their co-conspirators used these prescriptions, medical certifications and other documentation to fraudulently bill the Medicare program for home health care services, which Marrero and Fernandez Viera knew was in violation of federal criminal laws.
Rodriguez offered and paid kickbacks and bribes to Medicare beneficiaries in return for those beneficiaries allowing Trust Care to bill Medicare for services that were medically unnecessary and/or not provided. Rodriguez solicited and received kickbacks and bribes from the owners and operators of Trust Care, including Marrero and Fernandez Viera, in return for his patient recruiting. Rodriguez knew that in many instances the patients he recruited for Trust Care did not qualify for the services billed to Medicare.
From approximately March 2007 through at least October 2010, Trust Care submitted more than $20 million in claims for home health services. Medicare paid Trust Care more than $15 million for these fraudulent claims.
Marrero, Fernandez Viera and Rodriguez also acknowledged their involvement in similar fraudulent schemes at several other Miami health care agencies in addition to Trust Care with estimated total losses of approximately $50 million, including Global Nursing Home Health Inc., Lovable Home Health Services Corp., New Concepts In Health Inc., Ubieta Health System Inc., R&M Health Care Inc., Vital Care Home Health Services Inc., Centrum Home Health Care Inc. and A&B Health Services Inc.
At sentencing, scheduled for Nov. 12, 2013, the defendants face a maximum penalty of 10 years in prison for conspiracy to commit health care fraud and five years in prison for conspiracy to receive and pay health care kickbacks.
The case was investigated by the FBI and HHS-OIG, with the assistance of IRS-CI, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case was prosecuted by Trial Attorney A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Owners of Home Health Companies and Patient Recruiter Plead Guilty in Miami for Role in $20 Million Health Care Fraud SchemeRead the Press Release
The owners and operators of several Miami home health care agencies and a patient recruiter pleaded guilty today in connection with a health care fraud scheme involving defunct home health care company Trust Care Health Services Inc. (Trust Care).
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Special Agent in Charge Michael B. Steinbach of the FBI’s Miami Field Office; Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Miami office; and Acting Special Agent in Charge Michael J. DePalma of the Internal Revenue Service—Criminal Investigation’s (IRS-CI) Miami Field Office made the announcement.
Roberto Marrero, 60; Sandra Fernandez Viera, 49; and Enrique Rodriguez, 59, all of Miami, pleaded guilty before U.S. Magistrate Judge Edwin G. Torres in the Southern District of Florida to conspiracy to commit health care fraud and conspiracy to receive and pay health care kickbacks.
Marrero and Fernandez Viera were owners and operators of Trust Care, a Miami home health care agency that purported to provide home health and physical therapy services to Medicare beneficiaries. Rodriguez worked as a patient recruiter on behalf of Trust Care and Marrero and Fernandez Viera.
According to court documents, Marrero and Fernandez Viera operated Trust Care for the purpose of billing the Medicare Program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
Marrero largely controlled Trust Care and, in light of that role, oversaw the schemes operating out of the company. Fernandez Viera’s primary role, among others, involved managing and supervising personnel at Trust Care. Both Marrero and Fernandez Viera were responsible for negotiating and paying kickbacks and bribes, interacting with patient recruiters, and coordinating and overseeing the submission of fraudulent claims submitted to the Medicare program.
Marrero, Fernandez Viera and their co-conspirators paid kickbacks and bribes to patient recruiters, including Rodriguez, in return for the recruiters providing patients to Trust Care for home health and therapy services that were medically unnecessary and/or not provided. Marrero, Fernandez Viera and their co-conspirators at Trust Care also paid kickbacks and bribes to co-conspirators in doctors’ offices and clinics in exchange for home health and therapy prescriptions, medical certifications and other documentation. Marrero, Fernandez Viera and their co-conspirators used these prescriptions, medical certifications and other documentation to fraudulently bill the Medicare program for home health care services, which Marrero and Fernandez Viera knew was in violation of federal criminal laws.
Rodriguez offered and paid kickbacks and bribes to Medicare beneficiaries in return for those beneficiaries allowing Trust Care to bill Medicare for services that were medically unnecessary and/or not provided. Rodriguez solicited and received kickbacks and bribes from the owners and operators of Trust Care, including Marrero and Fernandez Viera, in return for his patient recruiting. Rodriguez knew that in many instances the patients he recruited for Trust Care did not qualify for the services billed to Medicare.
From approximately March 2007 through at least October 2010, Trust Care submitted more than $20 million in claims for home health services. Medicare paid Trust Care more than $15 million for these fraudulent claims.
Marrero, Fernandez Viera and Rodriguez also acknowledged their involvement in similar fraudulent schemes at several other Miami health care agencies in addition to Trust Care with estimated total losses of approximately $50 million, including Global Nursing Home Health Inc., Lovable Home Health Services Corp., New Concepts In Health Inc., Ubieta Health System Inc., R&M Health Care Inc., Vital Care Home Health Services Inc., Centrum Home Health Care Inc. and A&B Health Services Inc.
At sentencing, scheduled for Nov. 12, 2013, the defendants face a maximum penalty of 10 years in prison for conspiracy to commit health care fraud and five years in prison for conspiracy to receive and pay health care kickbacks.
The case was investigated by the FBI and HHS-OIG, with the assistance of IRS-CI, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case was prosecuted by Trial Attorney A. Brendan Stewart of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Owner of Home Health Care Company Sentenced to 10 Years in Federal Prison for Role in Health Care Fraud ConspiracyRead the Press Release
Defendant Also Ordered to Pay More Than $25 Million in Restitution
DALLAS — Cyprian Akamnonu, 64, of Cedar Hill, Texas, was sentenced this morning by U.S. District Judge Sam A. Lindsay to the statutory maximum of 10 years in federal prison and ordered to pay $25,466,779 in restitution, following his guilty plea in October 2012 to one count of conspiracy to commit health care fraud. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
In handing down the sentence and in response to a plea for leniency, Judge Lindsay stated, “For persons out there who are inclined to commit health care fraud, a low sentence in this case would have no deterrent effect.” Judge Lindsay also ordered that Akamnonu, who is in custody, forfeit the following property to the government: four vehicles, 21 parcels of real estate located in Dallas, Cedar Hill and Grand Prairie, Texas and funds in several business and personal bank accounts.
According to documents filed in the case, Akamnonu and his wife/business partner/co-defendant, Patricia Akamnonu, R.N., co-owned Ultimate Care Home Health Services. Akamnonu admits that from January 2006 through November 2011, he conspired with co-defendants Dr. Jacques Roy and others to defraud Medicare in connection with the delivery of, and payment for, health care benefits, items and services.
A trial date of January 13, 2014, is set for Akamnonu’s co-defendants, Dr. Roy, Patricia Akamnonu, Cynthia Stiger, Wilbert James Veasey, Teri Sivils and Charity Eleda.
According to documents filed in the case, at Akamnonu’s direction, his wife Patricia, and others, recruited Medicare beneficiaries to Ultimate to receive home health care services for which they did not qualify and did not need. Akamnonu and others would approach people throughout Dallas-area neighborhoods to see if they were qualified Medicare beneficiaries, and if they were, they would attempt to sign them up for home health services.
Once a beneficiary was recruited, Akamnonu would take paperwork to Sivils and other employees of Medistat Group Associates, PA., to be signed on behalf of Dr. Roy, certifying that the Medicare beneficiary was under Dr. Roy’s care, homebound and in need of skilled nursing services, thus allowing Ultimate to bill Medicare for the skilled nursing services. Akamnonu and Dr. Roy had an agreed-upon, fraudulent arrangement in which Ultimate provided Dr. Roy with the beneficiaries to bolster Medistat’s patient roster in exchange for Roy’s certification for skilled nursing services of any beneficiary sent to him. In addition, Sivils signed Ultimate’s paperwork on behalf of Dr. Roy because Akamnonu paid her cash kickbacks in exchange for doing so.
At Akamnonu’s direction, nurses would perform cursory visits to the beneficiaries at their homes that bore little relationship to the skilled nursing services for which the beneficiaries had been certified. Then, at Akamnonu’s direction, Ultimate would bill Medicare for skilled nursing services that were not necessary and were never in fact provided.
During this five-year period, more than 72% of Ultimate’s beneficiaries were certified by Dr. Roy or another Medistat physician acting at his direction. Ultimate billed more than $40 million to Medicare for skilled nursing services for these beneficiaries and Dr. Roy, in turn, incorporated these patients into his own practice and billed more than $2.3 million for services related to them.
The case is being investigated by the FBI, the U.S. Department of Health and Human Services - Office of Inspector General (HHS-OIG) and the Texas Attorney General’s Medicaid Fraud Control Unit and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division Fraud Section and the U.S. Attorney’s Office for the Northern District of Texas.
Assistant U.S. Attorneys Michael C. Elliott, Mindy Sauter, P. J. Meitl and John DeLaGarza are in charge of the prosecution.
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 HEAT Strike Force, please visit: www.stopmedicarefraud.gov.
Northern California Real Estate Investor Agrees to Plead Guilty to Bid Rigging at Public Foreclosure AuctionsRead the Press Release
A Northern California real estate investor has agreed to plead guilty for his role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Felony charges were filed today in the U.S. District Court for the Northern District of California in San Francisco against Daniel Rosenbledt of Hillsborough, Calif. Rosenbledt is the 36th individual to plead guilty or agree to plead guilty as a result of the department’s ongoing antitrust investigations into bid rigging and fraud at public real estate foreclosure auctions in Northern California.
According to court documents, Rosenbledt conspired with others not to bid against one another, but instead to designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in San Mateo and San Francisco counties, Calif. Rosenbledt was also charged with conspiring to use the mail to carry out schemes to fraudulently acquire title to selected properties sold at public auctions, to make and receive payoffs, and to divert to co-conspirators money that would have otherwise gone to mortgage holders and others.
Court papers stated Rosenbledt conspired with others to rig bids and commit mail fraud at public real estate foreclosure auctions in San Mateo County beginning as early as April 2008 and continuing until about January 2011. Rosenbledt was also charged with similar conduct in San Francisco County beginning as early as November 2009 and continuing until about January 2011.
“The Antitrust Division remains committed to vigorously pursuing conspirators who collude at foreclosure auctions at the expense of lenders and distressed homeowners,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “A competitive process benefits those homeowners who are looking for the best possible outcome during a difficult situation.”
The filing stated that the primary purpose of the conspiracies was to suppress and restrain competition and to conceal payoffs in order to obtain selected real estate offered at San Mateo and San Francisco County public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. According to court documents, these conspirators paid and received money that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and, in some cases, the defaulting homeowner.
“For those who engage in illegal anticompetitive practices at foreclosure actions, we will hold you accountable for your actions and bring you to justice,” said David J. Johnson, FBI Special Agent in Charge of the San Francisco Field Office. “The FBI and the Antitrust Division are committed to rooting out those who undermine the real estate market and take advantage of legitimate home buyers and sellers.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for the Sherman Act charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than $1 million. A count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud.
The charges today are the latest filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Alameda and Contra Costa counties, Calif. These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-436-6660, visit www.justice.gov/atr/contact/newcase.htm or call the FBI tip line at 415-553-7400.
Today's charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
**The fraud charge(s) referenced in this press release were
subsequently dismissed on the government’s motion.**
Nigerian National Sentenced to 100 Months for Involvement in Scheme to Defraud Lawyers Out of MillionsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Nigerian national charged in connection with a multi-national scheme that bilked more than $70 million from U.S. and Canadian lawyers was sentenced to serve 100 months in federal prison.
According to United States Attorney Peter J. Smith, Emmanuel Ekhator, age 42, of Mississauga, Canada, and Benin, Nigeria, was sentenced Wednesday by District Court Judge Yvette Kane following his plea of guilty to criminal conspiracy to commit mail fraud and wire fraud. Ekhator was ordered to pay $11,092,028 restitution to victims and serve a three-year term of supervised release following his incarceration. Judge Kane also directed the forfeiture of properties in Canada and the contents of several bank accounts in Nigeria.
According to the information the prosecutor provided to the court during the guilty plea proceeding, Ekhator was part of an attorney collection scam. Conspirators contacted U.S. and Canadian law firms by e-mail claiming to be individuals or businesses outside North America who were owed money by entities in the U.S. and asking for legal representation to collect the money. Often, the prospective “clients” said the monies owed came from a real estate transaction, tort claim, or divorce settlement. Once the law firm agreed to represent the out-of-country “client”, the law firm would be contacted by the U.S. entity purportedly owing money with an offer to pay the “client” by check. The “client” would instruct the law firm to deposit the check in the law firm’s trust account, retain the law firm’s fee, and wire the remaining funds to accounts in Asia. The check that was then mailed to the law firm would be a counterfeit check, a fact that would be discovered only after funds from the law firm’s trust account had been wired to the Asian bank.
The counterfeit checks, which appeared to be drawn on legitimate accounts from well-established financial institutions, often included a telephone number for the financial institution. Lawyers attempting to determine the validity of the check would call the number only to reach another conspirator who would falsely verify the check.
Ekhator’s co-defendant, Yvette Mathurin, has been charged in connection with this aspect of the conspiracy and is awaiting extradition from Canada. Investigation continues against other members of the large, multi-national conspiracy. Another co-conspirator, Kingsley Osagie, was arrested as he arrived in the Atlanta area from Nigeria and is currently awaiting trial in the Middle District of Pennsylvania. Other co-conspirators are pending extradition from several foreign countries.
As part of the agreement between lawyers for Ekhator and the government, the lawyers told the court that Ekhator’s involvement in the scheme makes him responsible for losses of more than $7 million and up to $20,000,000. Ekhator also admitted to being a leader in the criminal enterprise and that sophisticated means were used to commit the crime.
Ekhator was arrested in Nigeria in August 2010, and extradited to the United States in August 2011.
This case was investigated by a task force including the United States Postal Inspection Service, the Federal Bureau of Investigation, the United States Secret Service, the Toronto Police Services, the Royal Canadian Mounted Police and the Nigerian Economic and Financial Crimes Commission. It was prosecuted by Assistant U.S. Attorney Christy H. Fawcett.
Newark Man Federally Charged with Convenience Store Robbery SpreeRead the Press Release
NEWARK, N.J. – A man who allegedly committed six armed robberies of Newark convenience stores – including the same grocery twice within a week – has been federally charged in connection with the spree, U.S. Attorney Paul J. Fishman announced.
Larry McRae, 26, of Newark, is charged by complaint with six Hobbs Act robberies and one count of discharging a firearm in furtherance of a crime of violence. He appeared this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court and was detained.
According to the complaint unsealed today:
From June 30, 2012 through Sept. 15, 2012, McRae entered the convenience stores on six different occasions, robbing the store clerks at gunpoint. During the robbery of the Moroni Deli on Sept. 15, 2013, he discharged one round from a handgun as he exited the store. McRae was apprehended by members of the Newark Police Department later that morning and has been in state custody since that time.
The dates and locations of the robberies were as follows:
Date
Location
Moroni Deli
Sept. 5, 2012
P&T Grocery
Sept. 1, 2012
P&T Grocery
Aug. 29, 2012
New B&C Meat Market
June 30, 2012
Arvelo Mini Market
June 30, 2012
Angel Mini Market
Each of the Hobbs Act robbery charges carries a maximum potential penalty of 20 years in prison. The discharging a firearm in furtherance of a crime of violence charge carries a mandatory minimum penalty of 10 years in prison to run consecutive to any sentence that he receives for the Hobbs Act robbery charge and a maximum potential penalty of life in prison. Each of the seven counts also carries a maximum $250,000 fine.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation. He also thanked the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, and the Newark Police Department, under the leadership of Director Samual A. DeMaio and Chief Sheilah A. Coley for their excellent work on the case.
The government is represented by Special Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and the allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
13-355
Defense counsel: Assistant Federal Public Defender John Yauch Esq., Newark
McRae, Larry Complaint
New York Man Charged with EscapeRead the Press Release
Jermaine Heylinger, 41, of Jamaica, New York, was charged today by Indictment with one count of escape, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of five years imprisonment, a $250,000 fine, 3 years supervised release and a $100 special assessment.
The case was investigated by the United States Marshal Service and is being prosecuted by Assistant United States Attorney Jennifer Chun Barry.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525New Jersey U.S. Attorney’s Office Seeks to Forfeit Assets of Unlicensed Money Transmitter TrustcashRead the Press Release
NEWARK, N.J. – The New Jersey U.S. Attorney’s Office today filed a civil asset forfeiture complaint seeking the forfeiture of hundreds of thousands of dollars held in bank accounts previously seized by special agents of the U.S. Secret Service from an Atlanta-based unlicensed money transmitting business, U.S. Attorney Paul J. Fishman announced.
The complaint alleges that the assets are property involved in, or traceable to, deposits made into and through TCash Ads Inc. and its affiliate, Trustcash Holdings Inc. (“TCash”), in operating the illegal virtual currency service.
According to the complaint filed in Newark federal court: TCash is an online payment processing service that enables individuals to anonymously purchase goods and virtual currency credits from entities who are registered with the service. Users can enter any number of national bank locations and deposit cash into a TCash account. TCash accounts can be used to pay any TCash-registered entity, including virtual currency exchanges and off-shore accounts in Canada, Cyprus, the Philippines, China, Nepal, Australia and elsewhere.
The service’s website offers deposit, charge, and mobile payment as methods to process payments, advertising that it is “a leader in payment processing, and offers a powerful suite of payment services…” The website also indicates that if a customer uses a credit card, it will be billed as “TCash Ads Inc,” and that the service has the ability to accept payments from credit cards, e-checks, online bank accounts and cash and to provide customer anonymity.From as early as 2008 through 2012, TCash facilitated the transmission of millions of dollars, including transactions involving individuals in New Jersey.
Federal law requires every financial institution that operates as a money transmitting or service business (MTB) to be licensed in the state in which it is operating and to be registered with the Treasury Department through the Financial Crimes Enforcement Network (FinCEN). TCash does not possess the appropriate license in any state in which it appears to operate – including New Jersey, Georgia, California, Texas, New York and Delaware – and is not registered with FinCEN.
* * *
Civil forfeiture cases are “in rem” proceedings – meaning they are proceedings against things, not persons or entities who allegedly committed underlying unlawful acts. The law permits persons claiming an interest in the property an opportunity to appear and present their cases that they are innocent owners of the property and the property should not be forfeited.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, under the direction of James Mottola, Special Agent in Charge of the Newark Office, and support from FinCEN, a bureau within the U.S. Department of the Treasury, with the ongoing investigation.
The government is represented by Assistant U.S. Attorneys Evan S. Weitz of the U.S. Attorney’s Office Asset Forfeiture and Money Laundering Unit and Aaron Mendelsohn of the office’s Economic Crimes Unit in Newark.13-353
Defense counsel: Douglas R. Jensen Esq., New York
TCash Complaint
Neptune Township, N.J., Man Indicted for Shooting of Cab Driver and Several Armed Robberies in Monmouth CountyRead the Press Release
TRENTON, N.J. – A federal grand jury in Trenton, N.J., returned an indictment today charging a Neptune Township, N.J., man with shooting a cab driver during a 24-hour run of armed robberies in New Jersey shore-area towns, U.S. Attorney Paul J. Fishman announced.
Quam Wilson, 23, is charged in the 11-count indictment with five counts of committing a Hobbs Act robbery, five counts of using a firearm during a crime of violence and one count of possession of a firearm by a previously convicted felon.
Wilson was initially arrested and charged by federal criminal complaint with the conspiracy and firearms counts on March 13, 2013. He appeared on June 3, 2013, before U.S. Magistrate Judge Lois H. Goodman, who remanded him to federal custody pending trial. Wilson will be arraigned on the indictment on a date to be determined.
According to the indictment unsealed today and other documents filed in this case: Wilson engaged in a crime spree that began at approximately 5:00 a.m. on Nov. 13, 2012, when he shot and robbed a cab driver in Asbury Park. The victim, who survived, sustained a single gunshot wound to the head and was taken to Jersey Shore University Medical Center. Wilson took the cab driver’s identification and debit card during the robbery.
Wilson then proceeded to a Shell gas station located in Ocean Township at approximately 7:00 a.m. There, he approached a gas station attendant and, while brandishing a handgun, robbed him of cash and fled the area.
Later that morning, Wilson attempted to obtain money from the cab driver’s bank account from several area banks. Suspecting that a theft was taking place, a bank employee confiscated the identification and debit card from Wilson and contacted police.
At approximately 9:00 p.m. that same day, Wilson committed an armed robbery at a taxi stand in Long Branch, again while brandishing a handgun.
During the early morning hours of the next day, Nov. 14, 2012, Wilson robbed an Exxon gas station in Red Bank at gunpoint.
A short time later, Wilson entered a Quick Check convenience store in Neptune Township. Again, he pointed a handgun at a cashier and demanded money.
Wilson was arrested at approximately 10:00 p.m. by several police officers in Asbury Park, where he had been hiding in an attic.
Each count of Hobbs Act robbery (Counts One, Three, Five, Seven and Nine) carries a maximum potential penalty of 20 years in prison. The charge of using a firearm during a crime of violence (Counts Two, Four, Six, Eight and Ten) carries a maximum potential penalty of life in prison and a mandatory minimum sentence of 10 years in prison for a conviction on Count Two (which charges discharging a firearm in connection with robbing the cab driver), and 25 years for each subsequent count of conviction, each of which must run consecutively to one another and to any other prison term. The charge of possession of a firearm by a convicted felon (Count Eleven) carries a maximum potential penalty of 10 years in prison. Each of the counts also carries a maximum $250,000 fine.U.S. Attorney Fishman praised special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon, with the investigation. He also thanked the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher Gramiccioni, Asbury Park Police Department, Ocean Township Police Department, Long Branch Police Department, Neptune Township Police Department and the United States Marshals Service Fugitive Task Force for their excellent work in the investigation and apprehension of Wilson.
The government is represented by Assistant U.S. Attorney R. Joseph Gribko of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
13-354
Defense counsel: Edward Bertuccio Esq. Eatontown, N.J.
Wilson, Quam Indictment
Moses Lake Power Lifter Sentenced to 30 Months for Importing Anabolic Steroids into the United States from IndiaRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Ryan Shawn Kennelly, age 39, of Moses Lake, Washington, was sentenced for the crime of importing anabolic steroids into the United States from India. On September 5, 2013, Senior United States District Judge Fred Van Sickle sentenced Kennelly to a 30 month term of imprisonment, to be followed by a 3 year term of court supervision following release from Federal prison.
On March 8, 2013, Kennelly pleaded guilty to the charge of importing anabolic steroids into the United States. He has been in Federal custody since he was arrested in February, 2013.
According to information disclosed during the court proceedings, in December 2010, an overseas package for Kennelly arrived at the U.S. Post Office in Kennewick, Washington. Kennelly contacted the post office to find out if his international package arrived. After obtaining a Federal warrant to search the package, U.S. Postal Inspectors seized 1,503 anabolic steroid (methandrostenolone) tablets. The tablets had been mailed to Kennelly from Mumbai, India. The local Grant County Interagency Narcotics Enforcement Team (INET) had previously seized over 1 kilogram of powder anabolic steroids during a search of Kennelly's Moses Lake, Washington residence in October 2010.
Michael C. Ormsby said: "This case evidenced once again the strong working partnership established between Federal and local law enforcement officers in the Eastern District of Washington. The United States Attorney's Office, together with Federal and local law enforcement officers, is committed to investigate and prosecute aggressively crimes involving the importation of controlled substances into the United States. This case is an outstanding example of that commitment"
The investigation was conducted by the United States Postal Inspectors and Grant County Interagency Narcotics Enforcement Team. The case was prosecuted by George J.C. Jacobs, III, an Assistant United States Attorney for the Eastern District of Washington.
13-CR-00009-FVS
Monroe County Man Charged with Possessing GBLRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 32-year-old East Stroudsburg resident was charged today with unlawfully possessing gamma butyrolactone (GBL), a controlled substance analogue.
According to United States Attorney Peter J. Smith, his office filed a criminal Information today against Michael Koepfler for possessing GBL, which has a similar chemical composition to, and has the same effect on humans who ingest it, as GHB.
The charge against Koepfler stems from an investigation by Homeland Security Investigators. It is alleged that Koepfler possessed the substance in April 2011.
The case is being prosecuted by Assistant U.S. Attorney Francis
P. Sempa.Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is one year imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Monroe County Man Charged with False ERISA DocumentsRead the Press Release
The United States Attorney's Office for the Middle District Pennsylvania announced the filing of an Information charging Charles A. Poalillo, Jr., age 80, of Monroe County, Pennsylvania, with filing false documents related to taking over a million dollars from pension funds.
According to United States Attorney Peter J. Smith, Poalillo was the former owner of Penn Hills Lodge, Inc., a Pocono honeymoon resort located in Analomink, Pennsylvania. While he operated Penn Hills Lodge and related businesses, Poalillo borrowed approximately $1 million from two pension funds. He is being charged with falsely reporting the security of these assets to the United States Department of Labor. Pursuant to a guilty plea agreement filed with the Information, Poalillo is agreeing to attempt to make full restitution by the time of sentencing.
The United States Department of Labor’s Employee Benefits Security Administration and the Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, conducted the investigation. The Monroe County District Attorney’s Office initiated the investigation and assisted the federal authorities. Prosecution is assigned to Assistant United States Attorney Michael A. Consiglio.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In these particular cases, the maximum penalty under the federal statute is five years of imprisonment and a term of supervised release following imprisonment and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
* * * *Mississippi Woman Sentenced for Submitting Fraudulent Tax ReturnsRead the Press Release
Natchez, Miss - Margaret Turner, 54, of Hermanville, Mississippi, was sentenced in U.S. District Court today to 12 months and 10 days in federal prison followed by three years of supervised release for submitting fraudulent tax returns to the IRS, announced U. S. Attorney Gregory K. Davis and Gabriel Grchan, Special Agent in Charge, IRS Criminal Investigation. Turner was also ordered to pay $122,465 in restitution to the IRS.
Turner entered a guilty plea on March 08, 2012, admitting that she prepared and submitted false income tax returns which resulted in the payment of earned income tax credits to which neither she nor the filers were entitled.
Turner is the fourth person indicted, convicted and sentenced on tax fraud charges this year in the Claiborne County area. These cases represent the continuance of an increased effort to stop the victimization of the nation’s tax paying citizens. The United States Attorney’s Office in the Southern District of Mississippi has recently announced several indictments, arrests, and criminal prosecutions related to ongoing investigations of tax fraud.
“Today’s sentencing sends a clear message that those who choose to defraud our tax system will be caught and held accountable for their actions,” said U.S. Attorney Gregory K. Davis.
Gabriel Grchan, Special Agent in Charge, IRS, stated “The willful filing of false tax returns is a serious crime, punishable under federal law. Turner’s prosecution is evidence that IRS is committed to the aggressive pursuit of individuals who intentionally violate the public trust and engage in this type of criminal activity."
This case was investigated by Internal Revenue Service Criminal Investigation and prosecuted by Assistant United States Attorney Harold Brittain.
###If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Midway Woman Sentenced to 24 Months for Preparing and Filing Fraudulent Tax ReturnsRead the Press Release
TALLAHASSEE, FLORIDA– Monique Yvette Kimble, 39, of Midway, was sentenced Wednesday in federal court to 24 months in prison for preparing and filing fraudulent tax returns and for identity theft. The sentences were announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Kimble was sentenced for conduct that occurred from February through April 2009, when she acted as a certified tax preparer for a Tallahassee-area tax preparation business. On at least nine occasions, Kimble prepared tax returns seeking fraudulent credits, which resulted in improper tax refunds. In addition, on at least two occasions, Kimble filed tax returns using stolen identity information from persons who did not authorize, nor realize, that Kimble had filed returns seeking tax refunds on their behalf.
“These tax preparers committing fraud and stealing identities have hit Florida like a tsunami,” said U.S. Attorney Marsh. “We are investigating, indicting, and prosecuting these cases at a steadily increasing pace. Our law enforcement partners at every level are on top of the schemes and the technology, and we could not do these cases without their efforts.” In particular, Ms. Marsh praised the work of the Internal Revenue Service, whose investigation led to the convictions in the case.
U.S. District Judge Robert Hinkle ran the sentences for each of the thirteen counts of conviction concurrent to one another for a total of 24 months imprisonment, and a total of five years of supervised release.
“This sentence should send a message to tax professionals about their duty to prepare accurate and truthful tax returns and the consequences of not doing so” stated James D. Robnett, Special Agent in Charge of IRS Criminal Investigation. Robnett added “IRS will continue to aggressively investigate unscrupulous tax professionals and hold them accountable in order to insure the integrity of the income tax system.”
This case was investigated by the Internal Revenue Service, and was prosecuted by Assistant U.S. Attorney Eric K. Mountin.
Miami Resident Sentenced for Taking Migratory Birds and Unlawful Possession of A FirearmRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and David Pharo, Resident Agent in Charge, U.S. Fish and Wildlife Service (USFWS), Office of Law Enforcement (OLE), announce that on September 4, 2013, Jose Valladares, 56, of Miami, pled guilty to charges of taking migratory birds and unlawful possession of a firearm. Valladares was sentenced immediately following his guilty plea by U.S. District Judge Kathleen M. Williams to one year probation and a $125 special assessment.
According to Court documents and statements at the hearing, Valladares established a bird trap on his property which captured a turkey vulture (Cathartes aura), a species of migratory bird protected pursuant to the convention between the United States of America and the then existing Union of Soviet Socialist Republics concerning the conservation of migratory birds and their environment. The case also involved the capture and possession of three painted buntings (Passerina ciris), and four indigo buntings (Passerina cyanea).
During the operation to recover the painted and indigo buntings, Valladares was found to be in possession of a firearm and ammunition. Valladares was prohibited from possessing the same pursuant to a court order issued on or about January 22, 2004, by the Eleventh Judicial Circuit in Miami-Dade County.
Mr. Ferrer commended the investigative efforts of USFWS-OLE and ATF. This case is being prosecuted by Assistant U.S. Attorneys Norman O. Hemming, III and Antonia Barnes.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mescalero Apache Man Pleads Guilty to Federal Sexual Assault ChargeRead the Press Release
ALBUQUERQUE – James Darius Caje, 21, a member of the Mescalero Apache Nation who resides in Mescalero, N.M., pleaded guilty yesterday afternoon to a sexual assault charge under a plea agreement with the U.S. Attorney’s Office.
Caje was arrested in March 2013, on a criminal complaint alleging that he sexually assaulted a Mescalero Apache woman on July 27, 2012, in a location within the Mescalero Apache Reservation. He subsequently was indicted on that same charge.
During yesterday’s proceedings, Caje pleaded guilty to the indictment and admitted engaging in a sexual act with the victim who was lapsing in and out of consciousness and was thus incapable of appraising the nature of the conduct. Caje further admitted that he committed this crime on July 27, 2012, on the Mescalero Apache Reservation.
Caje is in federal custody and remains detained pending his sentencing hearing, which has yet to be scheduled. Under the terms of his plea agreement, Caje will be sentenced to a term of 51 months to 63 months in federal prison followed by a term of supervised release to be determined by the court.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
Maverick County Commissioner Cesar Flores Pleads GuiltyRead the Press Release
In Del Rio, Texas this morning, Maverick County Precinct Four Commissioner Cesar Flores, age 46 of Eagle Pass, Texas, pleaded guilty to his role in a bribery, kickback and bid-rigging scheme announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez. This is the third Maverick County Commissioner to plead guilty as part of this investigation.
Flores pleaded guilty to count one of his indictment, which charged him with receiving bribes. Flores admitted that he agreed to be influenced and rewarded for using his position to ensure that certain contractors were awarded construction contracts in Maverick County Precinct 4 in 2010 and in 2011—those contracts involved in excess of $5,000.
Flores faces up to ten years in federal prison, a $250,000 fine, three years of supervised release, and, pursuant to his plea agreement, he will pay restitution as ordered by the Court at sentencing. Flores will appear before Judge Alia Moses for sentencing at a date to be determined.
Assistant United States Attorney Michael Galdo is prosecuting this case on behalf of the Government.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741.MS-13 Gang Member Pleads Guilty to Charges of Transporting A Minor to Engage in ProstitutionRead the Press Release
ALEXANDRIA, Va. –Rene Ulises Quinteros Gaitan, 24, of Gaithersburg, Maryland, pled guilty today to charges of transporting a minor to engage in prostitution.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Scot R. Rittenberg, Acting Special Agent in Charge, United States Department of Homeland Security, Homeland Security Investigations (HSI), Washington, D.C., made the announcement after Gaitan’s hearing before United States District Court Judge Gerald Bruce Lee.
According to court documents and court proceedings today, during late July, 2011, Gaitan prostituted a 16-year-old juvenile female, first in Frederick, Md. and then in Richmond, Va. Gaitan transported the juvenile victim back to Maryland, this time to Prince George’s County, where he again prostituted her.
Gaitan pled guilty to one count of transporting a minor in interstate commerce to engage in prostitution and faces a mandatory minimum sentence of 10 years and maximum sentence of life in prison at sentencing, which is scheduled for November 22, 2013.
The investigation was conducted by Homeland Security Investigations. Assistant United States Attorney Mary K. Daly, and Special Assistant United States Attorney Alicia J. Yass, a Trial Attorney with the Child Exploitation and Obscenity Section of the Justice Department’s Criminal Division, are prosecuting the case on behalf of the United States, with assistance from William E. Nolan, a Trial Attorney with the Human Trafficking Prosecution Unit of the Justice Department’s Civil Rights Division.
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.usdoj.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 http://pacer.uspci.uscourts.gov.Lower Brule Woman Pleads Guilty to Assault by Striking, Beating and WoundingRead the Press Release
United States Attorney Brendan V. Johnson announced that Monica Quilt, age 41, of Lower Brule, South Dakota, appeared before U.S. Magistrate Judge Mark A. Moreno on September 4, 2013, and pled guilty to the Information that charged her with Assault by Striking, Beating and Wounding.
The maximum penalty upon conviction is 1 year of imprisonment and/or a $100,000 fine, 1 year of supervised release, an additional year of supervised release upon revocation, and a $25 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from an incident between May 8, 2013, and May 9, 2013, wherein Quilt and the victim, who were involved in an intimate, dating relationship, had both been out drinking, but separately. During the morning hours of May 9th, Quilt went to her home and the victim arrived later. A physical assault occurred between Quilt and the victim, which resulted in the victim suffering injuries to his neck and face that required medical treatment.
The investigation was conducted by the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Quilt was released on bond pending sentencing which has been set for November 8, 2013.Leicester Man Sentenced to 24 Years for Producing Child PornographyRead the Press Release
BOSTON – A Leicester man was sentenced today for various child pornography crimes.
Jason Clark, 31, was sentenced by U.S. District Judge Richard G. Stearns to 24 years in prison to be followed by 10 years of supervised release. In May 2013, Clark pleaded guilty to five counts of sexual exploitation of a child, distribution of child pornography, transportation of child pornography and possession of child pornography.Between October 2010 and October 2011, Clark used a five-year-old minor to produce child pornography and disseminated child pornography on the internet by trading it with other collectors and by posting it to websites.
Clark took pictures of his own sexual abuse of the five-year old girl that he gained access to because he was close friends with the child’s mother and the mother’s fiancé. Clark would stay overnight at their house and sleep in a room adjacent to the child’s room. He would also babysit the child, and lead the parents to believe that he was a caring friend. Clark, in e-mails and in a message he posted on the internet, expressed a desire to sexually abuse other young children, including a toddler. While addressing the Court, Clark admitted that he betrayed the trust of the child who looked up to him, and his best friend, the mother’s fiancé.
In addition, Clark cooperated with the government which resulted in the conviction of Anthony Hanifan, in Florida State Court on numerous charges including sexual battery of a two-year old girl. Hanafan faces a mandatory minimum sentence of life in prison in Florida.
“This case shows how the sexual abuse of children is often driven by the desire to feed the market for online child pornography,” said United States Attorney Carmen M. Ortiz. “People who produce, solicit, trade, and collect child pornography can cause a lifetime of pain for children and those closest to the young victims.”U.S. Attorney Ortiz; Mark G. Mastroianni, Hampden County District Attorney; and Colonel Timothy B. Alben, Superintendent of the Massachusetts State Police made the announcement today. The case was prosecuted by Assistant United States Attorney Alex J. Grant of Ortiz’s Springfield Branch Unit.
Leader of ‘Ghost Riders’ Motorcycle Gang Pleads Guilty to Illegal Weapons Possession ChargesRead the Press Release
A leader of the Ghost Riders motorcycle gang in Pierce County pleaded guilty today in U.S. District Court in Tacoma to possession of an unregistered short-barreled shotgun and being a felon in possession of explosives, announced U.S. Attorney Jenny A. Durkan. KARL TWILLEAGER, a/k/a “King Karl”, 66, of Spanaway, Washington, has been in custody since his property was searched on June 13, 2013. When sentenced by U.S. District Judge Ronald B. Leighton on December 6, 2013, prosecutors and the defense will jointly recommend a five year prison term. However, Judge Leighton may impose any sentence up to the ten year maximum allowed by law.
According to the plea agreement signed today, on June 11, 2013, ATF agents searched a Spanaway storage locker belonging to TWILLEAGER and found more than two sticks of Emulsion explosives and four blasting caps. They also recovered six firearms, including three rifles, two shotguns, and a handgun, as well as additional ammunition and empty ammunition magazines. Two days later they searched TWILLEAGER’s home and a shed on the property that was used as the Ghost Rider’s clubhouse. They seized multiple rounds of different calibers of ammunition, and six more firearms, including four handguns, a rifle, and a J.C. Higgins model 20 12-gauge short-barreled shotgun, with a barrel length of approximately 15.5 inches with no serial number. TWILLEAGER was convicted of second degree murder in Grant County, Washington in 1994 and is therefore prohibited from possessing firearms and explosives.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), with assistance from the Pierce County Sheriff’s Office Bomb Squad, the Washington State Patrol SWAT Team, and the South Sound Gang Task Force, and was prosecuted by Assistant United States Attorney Gregory A. Gruber.
Kirtland, N.M., Man Sentenced to Ten Years in Federal Prison for Discharging a Firearm During a Crime of Violence Defendant Prosecuted as Part of Federal Initiative to Address the Epidemic Incidence of Violence Against Native WomenRead the Press Release
ALBUQUERQUE – Harold Pete, 29, an enrolled member of the Navajo Nation who resides in Kirtland, N.M., was sentenced this afternoon to ten years in federal prison followed by three years of supervised release for discharging a firearm during a crime of violence. The sentence was announced by Acting U.S. Attorney Steven C. Yarbrough, Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI, and John Billison, Director of the Navajo Nation Division of Public Safety.
Pete was arrested on Jan. 1, 2013, and was charged in a criminal complaint with assault with a dangerous weapon, use of a firearm during and in relation to a crime of violence, and aggravated burglary. He has been in federal custody since his arrest.
In April 2013, Pete entered a guilty plea to a criminal information charging him with the use and discharge of a firearm during and in relation to an assault with a dangerous weapon. In his plea agreement, Pete admitted discharging a firearm during an assault on Dec. 30, 2012. Pete admitted firing a shotgun at the door of his estranged wife’s residence in Ojo Amarillo, N.M., which is in the Navajo Indian Reservation, and discharging the shotgun again after he was inside the residence. At the time, two women, including his estranged wife, and four minor children were in the residence.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and was prosecuted by Special Assistant U.S. Attorney David M. Adams.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project which is sponsored by the Justice Department’s Office on Violence Against Women, and seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Keller Woman Sentenced to Probation for Aiding and Abetting the Violation of A Lawful Court OrderRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Lisa M. Gabriel, age 35, of Keller, Washington, was sentenced on Wednesday, September 4, 2013 after having previously pleaded guilty on June 5, 2013 to one count of Aiding and Abetting the Violation of a Lawful Court Order. United States District Court Judge Lonnie Suko sentenced Gabriel to a one year term of probation. Judge Suko also prohibited Gabriel from applying for jobs in law enforcement or corrections for one year.
According to information disclosed during the court proceedings, Gabriel was employed as a Corrections Officer at the Colville Tribal Corrections Center in Nespelem, Washington. On March 14, 2011, Gabriel allowed an inmate, who was charged with domestic violence, to call the victim of that domestic violence on Gabriel's cell phone, even though the Colville Tribal Court had issued a no-contact order in that case. On April 20, 2011, Gabriel, using a telephone in the Corrections Center, called the same victim and handed the phone to the inmate, again violating the no-contact order. During both telephone calls, the inmate attempted to coerce the victim into not testifying in his domestic violence cases. The April 20, 2011 telephone call was being audio and video recorded, but Gabriel turned off the audio recording device part-way into that call.
Michael C. Ormsby stated: "The justice system in this country, be it in Federal, state, or tribal court, only functions if those entrusted to enforce the law do so diligently. The United States Attorney's Office for the Eastern District of Washington will prosecute law enforcement and corrections officers that violate that trust when such violations occur within Federal jurisdiction, including the Indian reservations in the District.
This investigation was conducted by FBI and the Colville Tribal Police Department. The case was prosecuted by Rudy J. Verschoor, an Assistant United States Attorney for the Eastern District of Washington.
CR-12-00242-LRS
Jury Convicts Bryan Woman in Health Care Fraud ConspiracyRead the Press Release
HOUSTON – Yolanda Nowlin, 42, has been convicted of conspiracy to commit health care fraud, four counts of health care fraud, conspiracy to commit kickback fraud and aiding and abetting Social Security fraud, United States Attorney Kenneth Magidson announced today. The verdicts were returned late yesterday afternoon following seven days of trial and less than three hours of deliberations.
Nowlin, of Bryan, ran two durable medical equipment companies - Yellabone Medic Care Express Equipment Supply Company and Yellabone Medical Equipment Inc. Nowlin was arrested in December 2012 along with co-defendant Carla Parnell, 50, also from Bryan. Parnell pleaded guilty earlier this year to Social Security fraud and testified against Nowlin at the jury trial.
The evidence at trial showed that between July 2003 and December 2009, Nowlin engaged in a scheme to defraud Medicare and Medicaid. Nowlin submitted claims to Medicare and Medicaid for durable medical equipment (DME) and incontinence supplies that were not delivered, not wanted and not needed by Medicare or Medicaid beneficiaries and were often the result of illegal kickbacks. During the alleged conspiracy, Nowlin submitted approximately $3,391,771.90 in claims to Medicare and Medicaid and received $1,108,316.82 for those claims. Approximately $750,000 was identified as fraudulently paid.
The evidence at trial also showed that Nowlin paid kickbacks to a large number of recruiters over the course of the scheme in return for the referral of beneficiaries to Yellabone.
Nowlin was additionally convicted of aiding and abetting the theft of government money from the Social Security administration. Nowlin and Parnell concealed Parnell’s employment with Yellabone in order to continue Parnell’s receiving Social Security disability benefits to which she was not entitled.
Nowlin faces up to 10 years for aiding and abetting Social Security fraud, up to 10 years for each count of health care fraud, up to 10 years for conspiracy to commit health care fraud and a maximum of five years for conspiracy to commit kickback fraud. She could also face the possibility of up to a $250,000 fine.
Nowlin’s sentencing hearing is set for Dec. 13, 2013, while Parnell is scheduled to be sentenced Dec. 20, 2013. Both women were permitted to remain on bond pending their respective hearings.
The United States is additionally seeking forfeiture of approximately $750,000 to be paid as restitution to Medicare and Medicaid.
The case was the result of a joint investigation conducted by agents from Texas Attorney General’s Office – Medicaid Fraud Control Unit and the Department of Health and Human Services-Office of the Inspector General, Office of Investigations. Special Assistant United States Attorneys Adrienne E. Frazior and Suzanne Bradley prosecuted the case.
Joplin Man Sentenced for Disaster Fraud in Failed Attempt to Get Tornado BenefitsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man was sentenced in federal court today for disaster fraud and making false statements to FEMA in a failed attempt to get federal disaster benefits following the May 22, 2011 tornado.
Scott Bradley Olsen, 58, of Joplin, was sentenced by U.S. District Judge Dean Whipple to 18 months in federal prison without parole, followed by two years of supervised release.
Olsen was convicted of two counts of a federal indictment in a trial that concluded on April 23, 2013.
Olsen originally filed for disaster assistance on May 26, 2011, claiming a Joplin residence was his secondary residence where he stored property that was damaged in the tornado, but FEMA found him ineligible for disaster assistance. After being denied, Olsen twice submitted documents to FEMA in an attempt to prove that the property was his primary residence. Olsen was again denied assistance on July 27, 2011.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the Department of Homeland Security-Office of Inspector General, the FBI and the Joplin, Mo., Police Department.
Disaster Fraud Hotline
Anyone with information about disaster fraud related to the Joplin tornado should call the National Center for Disaster Fraud hotline at 866-720-5721, the Joplin Police Department at 417-623-3131, or the FBI’s Joplin office at 417-206-5700.
Jewelry Store Robber Sentenced to 11 Years’ ImprisonmentRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Senior United States District Court Judge James M. Munley sentenced Huby Ramkissoon, age 38, of New York, New York, to 11 years’ imprisonment for the May 14, 2008 robbery of Dunay Jewelers, Wilkes-Barre, Pennsylvania.
According to United States Attorney Peter J. Smith, the sentence imposed by Judge Munley is the result of an investigation into a 2008 scheme to rob Luzerne County jewelry stores. To date, four other individuals have been charged in connection with that scheme in either federal or state court. Devon Nash and Jerry Smith were charged and convicted in federal court in connection with the May 5, 2008 robbery of the Steve Hydock Diamonds in Kingston, Pennsylvania. Jerry Smith and Jason Soto were charged and convicted in connection with the May 14, 2008 robbery of Dunay Jewelers, a jewelry store located in Wilkes-Barre, Pennsylvania. Smith was convicted in federal court, and Soto was convicted in state court. Finally, Kirk Robinson is presently pending trial on charges of conspiracy to use firearms in connection with both robberies.
Huby Ramkissoon was originally charged by a Complaint in 2008 by the Wilkes-Barre Police for the robbery. At the time the Complaint was filed in 2008, Ramkissoon was a fugitive. On October 16, 2012, a federal grand jury in Scranton returned an Indictment against Ramkissoon charging him with the robbery scheme.
On December 18, 2012, the Federal Bureau of Investigation located and arrested Ramkissoon in New York City.
On May 30, 2013, Ramkissoon pleaded guilty to two counts associated with the Dunay Jewelers robbery; interference with commerce by robbery; and using and brandishing a firearm in furtherance of the robbery.
In addition to the 11-year term of imprisonment, Judge Munley ordered that Ramkissoon be placed on supervised release for a period of three years following the service of his prison sentence. Judge Munley also ordered that Ramkissoon pay restitution in the amount of $89,285 representing the value of money and jewelry stolen during the Dunay Jewelers robbery.
The case was investigated by the FBI, the Kingston Police Department, and the Wilkes-Barre Police Department. Prosecution was assigned to Assistant United States Attorney John C. Gurganus.