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5 September 2013
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.
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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.
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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.
Jefferson County Woman Sentenced for Bank FraudRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 38-year-old Beaumont woman has been sentenced to federal prison for bank fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jeanie Marie Smith Henges pleaded guilty on Nov. 20, 2012 to seven counts of bank fraud and was sentenced to 24 months in federal prison today by U.S. District Judge Marcia Crone.
According to information presented in court, in March 2011, April 2011, April 2010, May 2010, March 2010, February 2010, and November 2008, Henges devised a scheme to fraudulently obtained funds from the following federally insured financial institutions: Anahuac National Bank, Eastex Federal Credit Union (FCU), Community Bank, MidSouth Bank, Education First FCU, Mobile Oil FCU and Wachovia Bank. Henges executed the scheme by presenting one or more fraudulent checks for deposit. According to the seven-count Information, the intended losses amount to approximately $72,419, and the actual losses amount to approximately $32,445.
Henges was also fined $4,000. A hearing has been set for Sep. 21, 2013 to determine restitution.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Randall L. Fluke.
Husband and Wife, Two Others Convicted at Trial for $3 Million South Jersey Time Share Mortgage Fraud SchemeRead the Press Release
CAMDEN, N.J. – A federal jury convicted a husband and wife and two others today for conspiring in a $3 million conspiracy to scam customers by offering phony consulting services to owners of timeshares through the New Jersey-based Vacation Ownership Group LLC, U.S. Attorney Paul J. Fishman announced.
The jury returned the verdict after two days of deliberation following a seven-week trial before U.S. District Judge Noel L. Hillman in Camden federal court.
Four defendants – Adam Lacerda, 28, and Ashley Lacerda, 32, both of Egg Harbor Township, N.J.; Ian Resnick, 37, of Abescon, N.J.; and Genevieve Manzoni, 46, of Lake Worth, Fla. – were convicted of one count of conspiracy to commit mail and wire fraud. Adam Lacerda was also convicted of nine counts of mail fraud and three counts of wire fraud. Ashley Lacerda was convicted of one count of mail fraud and four counts of wire fraud. Resnick was convicted of three counts of mail fraud and three counts of wire fraud. Manzoni was also convicted of one count of mail fraud.
A fifth defendant, Joseph Diventi, 32, of Somers Point, N.J., was acquitted of the two counts with which he was charged.
According to documents filed in this case and the evidence presented at trial:The defendants schemed to defraud hundreds of timeshare owners by offering fraudulent consulting services through their company, the Vacation Ownership Group (now VO Financial). Adam Lacerda, the company founder, president and chief executive officer, devised the company’s fraudulent sales pitches. He directed his sales force to tell numerous lies to VO customers, including that VO worked with the banks holding the customers’ loans, would use money sent by customers to pay off the customers’ loans on their timeshares, and could cancel customers’ timeshares with money back. His wife Ashley Lacerda, the company vice president and chief operating officer, sent fraudulent contracts to customers and managed the office.
Resnick, a convicted bank robber, started as a salesman giving the fraudulent sales pitch but became Adam Lacerda’s enforcer, with the title “director of compliance.”
Genevieve Manzoni was a top VO sales representative who falsely told one victim she worked with a bank, another victim that she worked with a timeshare developer.
The 14 victims who testified at trial – including business executives, veterans, senior citizens, a lawyer and a professor – were defrauded out of a total of tens of thousands of dollars by the defendants’ sophisticated scheme.
Each count of which the defendants were convicted carries a maximum potential penalty of 20 years in prison $250,000 fine, or twice the gain or loss caused by the offense. Sentencing before Judge Hillman is scheduled for Dec. 12, 2013 for Resnick and Manzoni and Dec. 13, 2013, for the Lacerdas.
To date, 13 other members of the VO Group have pleaded guilty to conspiring to commit mail fraud and wire fraud in connection with the scheme.
U.S. Attorney Fishman credited special agents of FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and special agents from the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Assistant Special Agent in Charge Michael Mikulka, Newark Field Office, New York Region, for the investigation. He also thanked the N.J. Department of Labor and Workforce Development for its assistance.
The government is represented by Assistant U.S. Attorneys Alyson M. Oswald and R. David Walk Jr. of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel:
Adam Lacerda: Mark E. Cedrone Esq., Philadelphia
Ashley Lacerda: Charles Nugent Esq., Marlton, N.J.
Ian Resnick: Michael E. Reilly Esq., Philadelphia
Genevieve Manzoni: Ralph A. Jacobs Esq., Philadelphia
Joseph Diventi: Brian Stephen O'Malley, Haddon Heights, N.J.South Jersey Mortgage Fraud Fact Sheet Final
Houma Man, Arlen B. Cenac, Jr., Sentenced for Making False Statements to the Federal Elections CommissionRead the Press Release
ARLEN B. CENAC, JR., age 57, a resident of Houma, LA, was sentenced today in federal court before U.S. District Court Judge Carl J. Barbier to one year probation, a $5,000 fine and a $100 special assessment for Making False Statements to the Federal Elections Commission, announced U.S. Attorney Dana Boente and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division. CENAC had previously pleaded guilty to a one-count Bill of Information.
According to court documents, between February 16, 2008 and May 24, 2008, CENAC, who is the president and owner of Cenac Towing, submitted cashier’s checks that he purchased in the names of individuals other than himself to the campaigns of two United States Senate candidates. The money CENAC used to purchase these cashier’s checks came from personal and corporate accounts. In submitting these contributions to the campaigns CENAC, neither obtained nor sought the knowledge, permission or authority of the individuals he listed as remitters on the cashier’s checks. CENAC’s provision of the cashier’s checks caused a knowing and willful “submission of a materially false, fictitious, and fraudulent statement and representation, that is the submission by unwitting authorized campaign committees of candidates for the United States Senate to the Federal Election Commission of a report that was materially false in reporting the source and amount of contributions to the campaigns.”
The case was investigated by the Federal Bureau of Investigation, the Criminal Division’s Public Integrity Section, and the United States Attorney’s Office.
The case was prosecuted by Department of Justice Trial Attorney Tracee Plowell and Assistant U. S. Attorney Dan Friel.
Hogsett Announces Federal Indictment of Methamphetamine Scheme Involving “smurfing”Read the Press Release
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today that Dawn Davis, age 44, of Mount Vernon, has been charged by federal indictment with multiple counts related to an alleged methamphetamine conspiracy across the tristate area. Hogsett said these charges come as the U.S. Attorney’s Office continues efforts to combat the manufacture and sale of methamphetamine in southwestern Indiana.
“Methamphetamine is a dangerous drug that destroys lives and has torn apart too many families across our state,” Hogsett said. “By targeting this deadly trade in all of its forms, from one pot labs to large-scale cartel activities, federal law enforcement is committed to ending this cycle of tragedy and violence.”
According to the indictment, Davis acted as an organizer and leader of a multi-state methamphetamine manufacturing and distribution conspiracy that operated in Indiana, Kentucky and Illinois. Davis allegedly enlisted individuals to obtain cold medication for her, a scheme referred to as “smurfing.” She would then allegedly use these materials to produce quantities of methamphetamine. The indictment charges that Davis would direct and assist these individuals in their “smurfing,” trading cash and/or manufactured methamphetamine for their cooperation.
The indictment describes the process by which the methamphetamine was produced, which involves pseudoephedrine, lithium extracted from batteries, ammonia, camping fuel, and drain cleaner. These highly volatile chemicals were then combined within a plastic soda bottle in what is often referred to as a “one pot” methamphetamine lab. This is an extremely dangerous production technique, creating substantial risks to the health and safety of people and property.
Court documents indicate that a search of the defendant’s residence allegedly revealed a number of items associated with the production of methamphetamine, along with two handguns, three shotguns, and various firearms ammunition.
According to Assistant U.S. Attorney Matthew P. Brookman, who is prosecuting the case for the government, Davis was charged with one count of conspiring to produce and distribute methamphetamine, one count of distributing methamphetamine, and one count of maintaining what prosecutors describe as a “drug involved premises” at a residence on Graddy Road in Mount Vernon. If convicted, she faces up to life in federal prison.
This investigation was the result of a collaborative investigation involving the
Information, indictments, and criminal complaints are only a charge and are 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.
Harrisburg Man Convicted for the Illegal Possession of A FirearmRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that following a two-day trial before Senior U.S. District Court Judge William W. Caldwell in Harrisburg, Jerome Mario Britton, age 34, was convicted late Wednesday on one-count of possession of a firearm by a convicted felon.
According to United States Attorney Peter J. Smith, Britton was serving a parole term on state charges when state Parole agents did a parole check/search after Britton’s brother, Dion Britton, was murdered on December 15, 2012. Parole agents entered Britton’s home on December 17, 2012. The initial search revealed contraband, including ammunition, drugs and drug paraphernalia. Parole agents contacted the Harrisburg Police Department and a search warrant for the residence was obtained. As a result of the executed search warrant, two firearms were recovered.
Britton was indicted in January 2013 on two counts of possessing a firearm as a convicted felon, one count of possession a stolen firearm and one count of possession with the intent to distribute a controlled substance, crack cocaine. After deliberating two hours, the jury convicted Britton of one count of possession of a firearm by a convicted felon and found him not guilty of the remaining charges.
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrisburg Police Bureau. This case was prosecuted by Assistant United States Attorney Meredith A. Taylor.
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.
Britton faces a mandatory minimum of 15 years’ imprisonment and a statutory maximum of life imprisonment for the firearms offense. A sentencing date has not been scheduled.
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.
Gretna Man, Keith Joseph Mcgee, Charged with the Sexual Exploitation of ChildrenRead the Press Release
KEITH JOSEPH MCGEE, age 29, of Gretna, Louisiana, was charged today in a three-count Indictment by a federal grand jury for crimes involving the sexual exploitation of children, announced United States Attorney Dana J. Boente. MCGEE was charged with one count of attempting to coerce a minor to produce images of sexually explicit conduct, one count of receiving sexually explicit images of a 14-year-old boy, and one count of receiving sexually explicit images from a 15-year old boy.
MCGEE faces a mandatory minimum term of imprisonment of 15 years and a maximum penalty of 70 years, followed by up to a life term of supervised release, and a $250,000 fine. He can also be required to register as a sex offender.
United States Attorney Boente reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
This case is being investigated by agents from the Federal Bureau of Investigation. The prosecution of this case is being handled by Assistant United States Attorneys Jordan Ginsberg.
(Download Indictment )
Greater Harrison Drug Task Force Investigations Lead to Federal IndictmentsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
CLARKSBURG, WEST VIRGINIA — United States Attorney William J. Ihlenfeld, II, announced that investigations by the Greater Harrison Drug & Violent Crime Task Force have led to federal indictments being returned this week in Clarksburg.
LEROY ROUSSEAU a/k/a “BLACK,” of Clarksburg and formerly of Washington, D.C. was charged with four counts of “Distribution of Crack Cocaine within 1,000 Feet of the Clarksburg City Park Playground,” one count of “Distribution of Crack Cocaine within 1,000
Feet of Pierpont Community and Technical College,” one count of “Possession with Intent to Distribute Heroin within 1,000 Feet of the Clarksburg City Park Playground,” one count of “Employment and Use of a Person Under 18 Years of Age in Drug Operations,” one count of “Possession with Intent to Distribute Crack Cocaine,” and, one count of “Felon in Possession of a Firearm.”The U.S. Attorney’s Office is seeking to forfeit a Haskell .45 caliber pistol as property used or intended to be used to commit the charged offenses.
ROUSSEAU faces up to forty years in prison on the sales and possession with intent to distribute charges that occurred near a protected location; twenty years imprisonment on the possession with intent to distribute charge; and, 10 years imprisonment on the felon in possession charge.
In a separate case, JUSTIN ZACHARY ROSA a/k/a “PEE WEE,” age 19 and NICHOLE NIKKI PIERCE, age 21, of Clarksburg were named in a nine-count Indictment charging them with“Conspiracy to Possess with Intent to Distribute and to Distribute Heroin.”
ROSA faces a total of nine counts and PIERCE faces a total of four counts.
In addition to the conspiracy charge, other charges include “Distribution and Possession with Intent to Distribute Heroin”, “Distribution and Possession with Intent to Distribute Heroin within 1,000 Feet of Nutter Fort Elementary School,” “Possession of a Firearm in Furtherance of Drug Trafficking Offenses,” “Felon in Possession of a Firearm;” and “Uttering Counterfeit Obligations.”
The U.S. Attorney’s Office is seeking to forfeit $4,822.46 in United States currency which constitutes proceeds obtained from the illegal activity as well as a cellular phone and a Smith and Wesson revolver.
ROSA and PIERCE each face up to twenty years on the conspiracy, distribution and possession with intent to distribute charges; up to forty years in prison on the sales and possession that occurred near a protected location; five years to life on the possession of a firearm to further the drug activity; and, ten years on the felon in possession charge.
The ROUSSEAU, ROSA, and PIERCE cases were investigated by the Greater Harrison County Drug and Violent Crime Task Force consists of officers from the Bridgeport Police Department; Clarksburg Police Department; Drug Enforcement Administration; West Virginia State Police-Bureau of Criminal Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Postal Inspection Service; and, the United States Marshals Service. The cases will be prosecuted by Criminal Chief Shawn A. Morgan, and the United States Secret Service also assisted with the ROSA and PIERCE investigations.
A California man was also indicted by the grand jury this week. CHARLES EVERETTE LEVINE, age 36, of Oakland, California, was named in a three-count Indictment charging him with two counts of “Bank Fraud” and one count of “Access Device Fraud.” The U.S. Attorney’s Office is seeking to forfeit a $25,000 money judgment which constitutes proceeds obtained from the illegal activity.
LEVINE faces up to thirty years on the bank fraud charges and up to ten years on the access device fraud charge. The case will be prosecuted by Assistant United States Attorney Andrew R. Cogar and was investigated by the United States Secret Service.
The charges contained in the indictments are merely accusations and not evidence of guilt, and each defendant is presumed innocent until and unless proven guilty.
Fourth Georgia Corections Officer Pleads Guilty in Inmate Beating CaseRead the Press Release
Today, the Civil Rights Division of the Justice Department and the U.S. Attorney for the Middle District of Georgia announced that Kadarius Thomas, a former member of the Correctional Emergency Response Team (CERT) and a former supervisor at Macon State Prison (MSP), in Oglethorpe, Ga., pleaded guilty to obstruction of justice. Thomas is the fourth former MSP officer to enter a guilty plea in connection with an ongoing federal investigation into staff assaults of inmates at the prison.
In connection with his plea, Thomas admitted that he and other CERT members escorted an inmate to the gym, where CERT members hit the handcuffed inmate in retaliation for his prior assault on an MSP supervisor. Thomas saw that the inmate had been injured by the unjustified use of force by CERT members. Thomas knew from past experience that the CERT members would not report the force used on the inmate. In keeping with directions from a supervisor, Thomas knowingly omitted from his report any reference to the unjustified force used on, or injuries inflicted upon, the inmate. Thomas submitted his false MSP witness statement even though he understood it was inaccurate, incomplete, and untruthful.
Thomas, 26, from Americus, Ga., faces a maximum penalty of 20 years in prison.“Mr. Thomas, by his statements, attempted to conceal the CERT team’s practice of using force to punish an inmate they swore an oath to protect,” said Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels. “Such actions have no place in our corrections system and the Department of Justice will continue to vigorously prosecute those who try to cover up such crimes.”
Michael J. Moore, the U.S. Attorney for the Middle District of Georgia, stated: “Today’s guilty plea is another example of the zero tolerance the Department of Justice has for correctional officers who use their position to try to cover up official misconduct.”
This case is being investigated by the FBI and is being prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Tona Boyd of the Civil Rights Division of the Department of Justice, with the assistance of the U.S. Attorney’s Office for the Middle District of Georgia and the support of the Georgia Bureau of Investigation.
Fourteen Area People Charged with First-Degree Felony Fraud for Stealing Unemployment BenefitsDefendants Submitted Claims Even Though They Were WorkingRead the Press Release
WASHINGTON – Fourteen people from the Washington, D.C. metropolitan area have been charged separately with fraudulently obtaining thousands of dollars each in unemployment benefits from the District of Columbia Department of Employment Services. All told, the defendants are alleged to have generated more than $250,000 in fraudulent benefits.
The charges were announced today by U.S. Attorney Ronald C. Machen Jr., Bill Jones, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Washington Regional Office of Labor Racketeering and Fraud Investigations, and Charles J. Willoughby, Inspector General for the District of Columbia.
The defendants, who were arrested today, are charged in the Superior Court of the District of Columbia with first-degree felony fraud. The charge carries a statutory maximum of 10 years in prison and financial penalties.
Each defendant is accused of submitting fraudulent claims for unemployment compensation to the D.C. Department of Employment Services. In fact, according to the charging documents, they were not entitled to the benefits because they were employed. The amounts they received ranged from $13,343 to $23,220, the charging documents stated.
“Unemployment benefits provide basic assistance to people who have fallen on hard times while they search for new work,” said U.S. Attorney Machen. “Cheaters who lie to obtain those benefits undermine our ability to help those who are truly in need. The arrests and charges announced today demonstrate our resolve to protect the taxpayer from abuse of critical public programs.”
“Today’s numerous arrests highlight the Office of Inspector General's commitment to safeguarding the Department of Labor's Unemployment Insurance Programs. We will continue to work with our law enforcement partners to investigate these types of alleged schemes,” said Special Agent in Charge Jones.
“I am proud of the role that the District of Columbia Office of the Inspector General has played and continues to play in conjunction with its law enforcement partners in the protection of the District’s fisc as well as in the maintenance of the integrity of District operations,” stated Inspector General Willoughby.
Those charged include: Charlene Adams, 48, of Stafford, Va.; Jeffrey Barton, 46, of Washington, D.C.; Joyce Garnes, 63, of Hyattsville, Md.; Crystal Hamlin, 41, of Washington, D.C.; Alhagi Jabbie, 36, of Silver Spring, Md.; Shaunte Kent, 31, of Middle River, Md.; Laurence Liggins, 46, of Washington, D.C.; Karentina McCoy, 39, of Suitland, Md.; Sean Pettus, 44, of Washington, D.C. ; Donna Queen, 35, of Washington, D.C.; Joseph Sackie, 53, of Silver Spring, Md.; Cherylene Smith, 54, of Suitland, Md.; Erica Smith, 44, of Silver Spring, Md., and Anthony White, 48, of Washington, D.C.
The fraudulent claims covered various time periods, depending on the defendant. Overall, the time-frame includes benefits sought from 2007 through 2012. The amount of fraudulent unemployment benefits alleged in the charging documents varied among defendants:
Adams: $17,214
Barton: $18,000
Garnes: $19,147
Hamlin: $15,825
Jabbie: $17,760
Kent: $19,752
Liggins: $13,343
McCoy: $23,220
Pettus: $20,861
Queen: $18,203
Sackie: $16,259
Cherylene Smith: $17,664
Erica Smith: $18,052
White: $17,899The filing of a criminal charge is merely an allegation that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
The arrests followed an investigation by the U.S. Department of Labor’s Office of Inspector General and the District of Columbia Office of the Inspector General. This case is being prosecuted by Assistant U.S. Attorney Stephanie G. Miller of the U.S. Attorney’s Office for the District of Columbia.
13-305Fourteen Area People Charged with First-Degree Felony Fraud for Stealing Unemployment BenefitsDefendants Submitted Claims Even Though They Were WorkingRead the Press Release
WASHINGTON – Fourteen people from the Washington, D.C. metropolitan area have been charged separately with fraudulently obtaining thousands of dollars each in unemployment benefits from the District of Columbia Department of Employment Services. All told, the defendants are alleged to have generated more than $250,000 in fraudulent benefits.
The charges were announced today by U.S. Attorney Ronald C. Machen Jr., Bill Jones, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Washington Regional Office of Labor Racketeering and Fraud Investigations, and Charles J. Willoughby, Inspector General for the District of Columbia.
The defendants, who were arrested today, are charged in the Superior Court of the District of Columbia with first-degree felony fraud. The charge carries a statutory maximum of 10 years in prison and financial penalties.
Each defendant is accused of submitting fraudulent claims for unemployment compensation to the D.C. Department of Employment Services. In fact, according to the charging documents, they were not entitled to the benefits because they were employed. The amounts they received ranged from $13,343 to $23,220, the charging documents stated.
“Unemployment benefits provide basic assistance to people who have fallen on hard times while they search for new work,” said U.S. Attorney Machen. “Cheaters who lie to obtain those benefits undermine our ability to help those who are truly in need. The arrests and charges announced today demonstrate our resolve to protect the taxpayer from abuse of critical public programs.”
“Today’s numerous arrests highlight the Office of Inspector General's commitment to safeguarding the Department of Labor's Unemployment Insurance Programs. We will continue to work with our law enforcement partners to investigate these types of alleged schemes,” said Special Agent in Charge Jones.
“I am proud of the role that the District of Columbia Office of the Inspector General has played and continues to play in conjunction with its law enforcement partners in the protection of the District’s fisc as well as in the maintenance of the integrity of District operations,” stated Inspector General Willoughby.
Those charged include: Charlene Adams, 48, of Stafford, Va.; Jeffrey Barton, 46, of Washington, D.C.; Joyce Garnes, 63, of Hyattsville, Md.; Crystal Hamlin, 41, of Washington, D.C.; Alhagi Jabbie, 36, of Silver Spring, Md.; Shaunte Kent, 31, of Middle River, Md.; Laurence Liggins, 46, of Washington, D.C.; Karentina McCoy, 39, of Suitland, Md.; Sean Pettus, 44, of Washington, D.C. ; Donna Queen, 35, of Washington, D.C.; Joseph Sackie, 53, of Silver Spring, Md.; Cherylene Smith, 54, of Suitland, Md.; Erica Smith, 44, of Silver Spring, Md., and Anthony White, 48, of Washington, D.C.
The fraudulent claims covered various time periods, depending on the defendant. Overall, the time-frame includes benefits sought from 2007 through 2012. The amount of fraudulent unemployment benefits alleged in the charging documents varied among defendants:
Adams: $17,214
Barton: $18,000
Garnes: $19,147
Hamlin: $15,825
Jabbie: $17,760
Kent: $19,752
Liggins: $13,343
McCoy: $23,220
Pettus: $20,861
Queen: $18,203
Sackie: $16,259
Cherylene Smith: $17,664
Erica Smith: $18,052
White: $17,899The filing of a criminal charge is merely an allegation that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
The arrests followed an investigation by the U.S. Department of Labor’s Office of Inspector General and the District of Columbia Office of the Inspector General. This case is being prosecuted by Assistant U.S. Attorney Stephanie G. Miller of the U.S. Attorney’s Office for the District of Columbia.
13-305Four Individuals Sentenced for Their Roles in Large, Multi-state Identity Theft RingRead the Press Release
MINNEAPOLIS—Yesterday in federal court in St. Paul, four individuals were sentenced for their roles in a large, multi-state, identity theft ring. United States District Judge Paul A. Magnuson sentenced Jerome Davis, Jr., Jemall Ronta Williams, Tierra Samantha Catrina House, and Shanell Collette Brewer each on one count of conspiracy to commit bank fraud and one count of aggravated identity theft.
Davis, age 44, no known address, was sentenced to 50 months of imprisonment, Williams, age 38, no known address, was sentenced to 36 months of imprisonment, House, age 23, of St. Paul, was sentenced to 32 months of imprisonment, and Brewer, age 34, of Minneapolis, was sentenced to 27 months of imprisonment.
These individuals, along with more than 100 others, were involved in a conspiracy, from 2006 through December of 2011, to defraud banks, bank customers, and businesses. The co-conspirators used victim information to create counterfeit checks and false identification documents to conduct fraudulent transactions at retail establishments, where expensive merchandise was purchased and returned for cash. At banks, the conspirators posed as customers and withdrew money from victims’ bank accounts. The members of the conspiracy conducted these fraudulent transactions in Minnesota and at least 13 other states. Victim information was obtained by members of the conspiracy through multiple sources, including from individuals who stole information from their places of employment, from people employed at area banks, from those who stole information from mail, during vehicle break-ins, and through business burglaries, among other sources.
In his plea agreement, Davis admitted that from 2010 through 2011, he, too, was part of the conspiracy. For his part, Davis recruited individuals to conduct fraudulent transactions at financial institutions and retail establishments. He provided those individuals with false identification documents and counterfeit checks that he had received from other members of the conspiracy. Davis also drove individuals to retail stores, where the co-conspirators conducted fraudulent transactions in excess of $140,000.
In his plea agreement, Williams admitted that he joined the conspiracy in 2009, and from that time forward, he obtained victim information from a co-conspirator who worked at Wells Fargo. Williams also admitted providing that information to others, who then used it to create false and fictitious identification documents and counterfeit checks. In addition, Williams admitted recruiting individuals to pass those counterfeit checks at banks and retail establishments. Williams was responsible for approximately $40,000 in fraudulent transactions.
In her plea agreement, House admitted that between July and November 2008, while employed as a bank teller at the St. Paul Postal Employees Credit Union (“PCU”), she provided co-conspirators with customer information, including names, dates of birth, Social Security numbers, account numbers, and account information. The co-conspirators used that information to create false identification documents, which were then used by other co-conspirators to conduct fraudulent transactions using counterfeit checks. House admitted responsibility for approximately $22,000 in fraudulent transactions involving money stolen from the accounts of others.
In her plea agreement, Brewer admitted that in 2009, while employed at Sonus, a Plymouth-based business, she provided co-conspirators with customer information, including names, addresses, and bank account numbers. The co-conspirators used that information to create counterfeit checks and false identification documents, which were then used by other co-conspirators to conduct fraudulent transactions at various businesses. Brewer admitted responsibility for at least $18,000 in attempted fraudulent transactions and purchases through the use of counterfeit checks.
To date, 28 other members of the conspiracy have been sentenced. The remaining co-conspirator, Gordon Lamarr Moore, awaits sentencing, which has not yet been scheduled. Moore was convicted in April 2013, following a jury trial. During the trial, Moore fled from the jurisdiction. On July 8, 2013, he was arrested in at a hotel in Milwaukee, Wisconsin. Moore then attempted to flee again but was apprehended without incident.
These prosecutions resulted from an investigation conducted by the Minnesota Financial Crimes Task Force, the U.S. Postal Inspection Service, and the IRS-Criminal Investigations. The defendants were prosecuted by Assistant U.S. Attorney Karen B. Schommer and Assistant U.S. Attorney Michelle E. Jones.
The Financial Crimes Task Force was established pursuant to state law and is comprised of local, state, and federal law enforcement investigators dedicated to combating the growing problem of cross-jurisdictional financial crimes. The task force, overseen by an advisory board also created under state law, serves the entire District of Minnesota, presenting its cases to county or federal prosecutors, as appropriate.
The task force and the Minnesota U.S. Attorney’s Office want to remind people to protect themselves from identity theft. For more information, visit http://www.stopfraud.gov/protect-identity.html.
For more information on how to avoid becoming a victim of identity theft, visit https://postalinspectors.uspis.gov/investigations/MailFraud/fraudschemes/mailtheft/IdentityTheft.aspx . The IRS-Criminal Investigations also urges citizens to review the Taxpayer Guide to Identity Theft, which can be found at http://www.irs.gov.
For tips on how to prevent mail theft, visit https://postalinspectors.uspis.gov/investigations/MailFraud/fraudschemes/mailtheft/MailTheft.aspx.Former Wellington Resident Charged in Investment Fraud SchemeRead 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, Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Drew J. Breakspear, Commissioner, Florida’s Office of Financial Regulation, announced the return of a 27-count indictment charging Joseph Paul Zada, 55, of Grosse Pointe Shores, Michigan, with mail fraud, wire fraud, interstate transportation of stolen property, and money laundering in connection with an investment fraud scheme.
According to the indictment, in order to attract investors to his fraudulent scheme, Zada projected an image of great wealth, portraying himself as a successful businessman and investor with connections to Saudi Arabian oil ventures. In this regard, Zada hosted extravagant parties, drove expensive luxury vehicles, and maintained expensive homes in Wellington, Florida and Grosse Pointe, Michigan. The indictment alleges that Zada told investors that he would invest their monies in oil related ventures. Instead of being used to invest in oil ventures, the investor monies were used to support Zada’s lavish lifestyle and to make purported returns on investments to prior investors. According to the indictment, Zada caused over twenty investors to invest over $20 million in his fraudulent scheme.
If convicted, Zada faces a statutory maximum penalty of 20 years in prison for each count of mail fraud and wire fraud, and a statutory maximum of 10 years in prison for each count of interstate transportation of stolen property and money laundering.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI and the Florida Office of Financial Regulation. The case is being prosecuted by Assistant U.S. Attorney Rolando Garcia.
An indictment is only an accusation, and the 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.
Former Virginia Beach Probation Officer and Husband Plead Guilty to Conspiracy to Distribute MethamphetamineRead the Press Release
NORFOLK, Va. – Charles M. Kephart, 43, of Norfolk, Va., pleaded guilty today to conspiracy to distribute and possess with intent to distribute five grams or more of methamphetamine, commonly known as “ice.”
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, made the announcement after the plea was accepted by Senior United States District Judge Henry Coke Morgan, Jr.
Charles Kephart was indicted by a federal grand jury in Norfolk on May 23, 2013. His wife, Katherine M. Kepart, a former Virginia Beach state probation officer, waived indictment and pled guilty to the conspiracy on August 13, 2013. Both are facing a maximum penalty of forty years in prison. Katherine Kephart is scheduled to be sentenced on December 13, 2013. Charles Kephart is scheduled to be sentenced on December 12, 2013.
According to court documents, the Kepharts regularly used methamphetamine and associated with known methamphetamine traffickers. In November 2012, law enforcement authorities received information that Kephart and his wife were obtaining quantities of methamphetamine from sources in the Asheville, North Carolina area and trafficking in the Eastern District of Virginia. On February 28, 2013, Charles Kephart was arrested during a controlled sale with an undercover police officer. FBI Norfolk then executed a federal search warrant on the Kepharts’ residence in Norfolk. The search yielded drug paraphernalia. Katherine, who at the time was employed by the Virginia Beach probation office, utilized the facilities of her office by “running” names and license plates of prospective conspirators to determine whether they might be under court supervision, or whether they were working for law enforcement.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Darryl J. Mitchell is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former San Bernardino County Police Officer Arrested on Federal Civil Rights Charges Stemming from Alleged Sexual AssaultsRead the Press Release
RIVERSIDE, California – A former officer with the San Bernardino Police Department was arrested today after being indicted yesterday on federal civil rights charges for allegedly forcing two prostitutes to perform sex acts while he was in uniform and/or carrying a gun.
Jose Jesus Perez, 46, of Menifee, was arrested without incident today in Denton, Texas, by officers with the Denton Police Department at the request of the Federal Bureau of Investigation. Perez is expected to make his initial court appearance tomorrow in United States District Court in Sherman, Texas.
“The charges in this case describe disgraceful abuses of police authority that simply cannot be tolerated in our society,” said United States Attorney André Birotte Jr. “The San Bernardino Police Department understands that this type of conduct deserves sure and swift action, and I thank them for promptly referring the matter to us and working with us to obtain this indictment. We are committed to ensuring that the public is lawfully served by its peace officers.”
A federal grand jury in Riverside yesterday returned under seal a four-count indictment that named Perez. The indictment, which was unsealed following Perez’s arrest, alleges that he forcibly had sex with two women who told investigators that they engaged in the sex acts demanded by Perez only because they feared for their well-being because he was a police officer.
“Mr. Perez allegedly violated the civil rights of victims he vowed to protect, instead of gaining their trust and providing them with the basic respect all members of a community deserve,” said Bill L. Lewis, Assistant Director in Charge of the FBI’s Los Angeles Field Office. “By his alleged actions, Mr. Perez also violated the trust of his fellow officers and the community he swore to serve as a police officer in the city of San Bernardino. The FBI values its relationship with partnering local police and appreciates the support provided by the San Bernardino Police Department in this case.”
The indictment alleges that on April 25, 2011, Perez groped a woman and caused her to perform oral sex by using force against her. According to the indictment, the attack resulted in bodily injury to the victim, constituted aggravated sexual abuse, involved the use of a dangerous weapon (Perez’s service weapon), and resulted in the kidnapping of the victim.
The remaining three counts in the indictment charge Perez with unlawfully having sexual intercourse with a woman on three occasions in August and September 2011. According to a criminal complaint filed last month and also unsealed today, this victim “feared that if she refused Perez’s sexual advances he could and would make her life difficult.” She told investigators that she believed she would experience “problems” if she did not cooperate with Perez’s requests, according to the complaint.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
Each of the four counts in the indictment carry a statutory maximum penalty of life in federal prison.
Perez became a police officer in 1997, when he was hired by the Los Angeles Police Department. Perez worked for the LAPD until 2008, when he went to work for the San Bernardino Police Department. Perez was released from employment by SBPD in December.
The investigation into Perez was conducted by the San Bernardino Police Department and the FBI.
Release No. 13-111
Former Massachusetts Man Pleads Guilty in Robbery and Shooting Death of Woonsocket, R.I., Gas Station Manager; Faces up to Life in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Jose A. Santiago, 36, formerly of Springfield, Mass., pleaded guilty in federal court in Providence today to conspiracy to commit Hobbs Act robbery; Hobbs Act robbery; and carrying, using, and discharging a firearm during and in relation to a federal crime of violence, death resulting, for his participation in a conspiracy that resulted in the armed robbery and murder of David D. Main of Woonsocket on September 20, 2010. Mr. Main was chased, shot to death at close range and robbed as he approached the doorstep of a Woonsocket, R.I., bank where he was preparing to deposit receipts belonging to a gas station he managed.
Santiago, who has been identified in court records as the getaway driver following the robbery and murder of Mr. Main, was scheduled to go on trial on Monday, September 9, 2013. Santiago’s guilty plea was entered prior to the beginning of the second day of jury empanelment. At sentencing on November 22, 2013, pursuant to federal sentencing guidelines, Santiago faces between 30 years to life in federal prison. No plea agreement was filed in this matter.
Santiago’s guilty plea before U.S. District Court Judge William E. Smith was announced by United States Attorney Peter F. Neronha; Rhode Island Attorney General Peter F. Kilmartin; Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police; Woonsocket Police Chief Thomas S. Carey; and Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI.
Jason Wayne Pleau, 35, pleaded guilty on July 31, 2013, to conspiracy to commit Hobbs Act robbery; Hobbs Act robbery; and carrying, using, and discharging a firearm during and in relation to a federal crime of violence, death resulting. At the time of his guilty plea, Pleau admitted to the court that he robbed and murdered David Main as Mr. Main approached the bank. Pleau admitted to the court that he fled from the area in a vehicle which was parked on a nearby side street near the bank and was being driven by Jose Santiago.
Pleau faces up to life in federal prison when he is sentenced by U.S. District Court Judge William E. Smith on October 25, 2013.
Kelly Marie Lajoie, 35, pleaded guilty on December 9, 2011, to Hobbs Act conspiracy; aiding and abetting a Hobbs Act robbery; and use of a firearm during a federal crime of violence. She is detained while awaiting sentencing. A sentencing hearing has not yet been scheduled.
The defendants are being prosecuted by Assistant U.S. Attorneys Adi Goldstein and William J. Ferland.
The matter was investigated by the FBI, Woonsocket Police and Rhode Island State Police, with the assistance of the U.S. Marshals Service and the Rhode Island National Guard.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Former Kinston City Council Member Sentenced for Child Pornography ChargeRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court today, WILLIAM WALTER BARKER 44, of Kinston, North Carolina was sentenced by Senior United States District Judge James C. Fox to 78 months imprisonment, followed by a lifetime of supervised release and a $10,000.00 fine on the charge of one count of Receipt of Child Pornography, in violation of Title 18, United States Code, Section 2252 (a)(2).
Investigation of this case was conducted by the North Carolina State Bureau of Investigation and the Freemont Police Department. Assistant United States Attorney Ethan A. Ontjes prosecuted the case.
According to the investigation, the Freemont Police Chief received a USB thumbdrive found in the Freemont Town Hall Board of Alderman meeting room near where BARKER was sitting during a meeting he attended. BARKER was employed by a CPA firm in Kinston and attended the meeting to present and discuss the town audit. The thumbdrive contained images of child pornography along with other documents belonging to BARKER. Subsequently, a search warrant of BARKER’S residence in Kinston was executed on November 29, 2012. BARKER was home at the time and admitted to possessing a thumb dive that matched the description of the thumb drive found in Freemont’s Town Hall. A laptop computer recovered during the search of BARKER’S home contained 11,025 images and 1,022 videos of child pornography.
This case is part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national initiative, go to www.projectsafechildhood.gov.Former Joplin Man Pleads Guilty to Fraud Related to Tornado BenefitsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Joplin, Mo., man pleaded guilty in federal court today to his role in a wire fraud scheme following the May 22, 2011 tornado.
Christopher L. Smith, 36, of Memphis, Tenn., formerly of Joplin, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a June 11, 2013, federal indictment.
Smith admitted that he assisted another person to defraud the Economic Security Corporation of Southwest Area in Joplin. The not-for-profit corporation administered a rental assistance program, the Missouri Housing Trust Fund (MHTF) Disaster Relief Program. This program disbursed funds to landlords who rented to clients who had been displaced by natural disasters, including the May 22, 2011 tornado that struck Joplin.
Smith assisted in the wire fraud scheme in two fraudulent transactions. In June or July 2012, Smith signed two MHTF program applications as landlord/property manager/mortgagee, which was false and fraudulent in that Smith then knew he was not a landlord, property manager, or mortgagee entitled to receive MHTF program funds. Based on the false application, the Economic Security Corporation issued a $1,850 check to Smith on June 21, 2012, and a $2,085 check to Smith on July 26, 2012. The financial loss resulting from Smith’s conduct and for which Smith must pay restitution totals $3,935.
On Aug. 21, 2013, co-defendant John L. Williams, 31, of Memphis, Tenn., formerly of Joplin, pleaded guilty to his role in the scheme. Williams, who was not a landlord or property manager of Economic Security Corporation clients, conspired with others to submit fraudulent applications for rental assistance. Williams assisted in the scheme by serving as a purported landlord on two fraudulent applications for rental assistance, and also by accompanying other check recipients to the bank to cash their checks, in order to collect the proceeds of the fraud.
The Economic Security Corporation issued two rental assistance checks to Williams totaling $3,050. The total financial loss from the wire fraud conspiracy totaled $8,565.
Under federal statutes, Smith and Williams are each subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the Missouri State Highway Patrol.
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.
Former Bend Area Mortgage Broker and Others Sentenced for $7 Million Mortgage Fraud SchemeRead the Press Release
EUGENE, Ore. – This week U.S. District Court Judge Ann Aiken sentenced Peter Wilkinson and six others for their roles in a $7 million mortgage fraud scheme. Wilkinson, 43, of Eugene, Oregon, received the largest sentence: 57 months in prison and five years of supervised release. The court has not yet ruled on restitution.
According to court records, Wilkinson was a former state-licensed mortgage broker and owned and operated Deschutes Mortgage Group in Bend, Oregon, during the housing boom. As part of his scheme, Wilkinson knowingly submitted almost 60 bad loans for more than 30 properties, causing lenders to lose between $2.5 million and $7 million. Wilkinson pocketed more than $500,000 from these loans. He also involved six of his client-borrowers in his scheme: Cary Martinez, Barry Seaton, Kurtis Israel, Sean Bart, Jason Hoby, David McNulty, and Amy Ridley.
To convince lenders to approve the loans, Wilkinson and his client-borrowers falsely inflated their monthly incomes on home loan applications, omitted their liabilities from home loan applications, falsely claimed on home loan applications that the financing was for a primary residence rather than an investment property, or used straw borrowers to obtain financing for real estate. Additionally, Wilkinson and his client-borrowers deposited large amounts of money, often $100,000 or more, into their checking accounts to falsely prove cash reserves needed for the loan approval process.
U. S. Attorney Amanda Marshall noted, “The defendants fraud was extensive, involving at least eight individuals, more than 30 properties, more than 50 loans, money laundering, numerous victims, countless financial transactions, straw borrowers, millions of dollars in losses, and potentially millions of dollars in restitution. These defendants, members of the finance and real estate industries, and home buyers need to understand that fraud will not be tolerated. Such selfish choices affect more than a few individuals. They affect entire industries and communities. The defendants’ conduct, when taken with similar fraudsters, contributed to the housing bubble that left our great state and nation reeling when it burst.”
Cary Martinez, 41, of Boulder, Colorado, was sentenced to 36 months of prison, 200 hours of community service, and three years of supervised release; Barry Seaton, 50, of Long Beach, California, was sentenced to 24 months in prison, and three years of supervised release. Aside from their role in Wilkinson’s scheme, they were also sentenced for laundering drug proceeds through real estate and financial transactions. Kurtis Israel, 40, of Portland, Oregon, Sean Bart, 43, of Bend, Oregon, Jason Hoby, 40, of Albany, Oregon, and David McNulty, 40, of Bend, Oregon, were each sentenced to five years of probation and 500 hours of community service.
Kenneth Hines, Special Agent in Charge of IRS-Criminal Investigation in the Pacific Northwest, stated, “Mortgage fraud continues to be a burden on our economy and affect our daily lives. When so-called professionals lie and cheat to pay for an elaborate lifestyle that includes expensive cars and tickets on the 50-yard line, it may bring an illusion of success. However, the ultimate outcome may be serving time in jail.”
“The main defendant put hundreds of thousands of dollars into his own pockets while defrauding more than 20 banks and businesses out of millions of dollars,” said Greg Fowler, Special Agent in Charge of the FBI in Oregon. “This case represents a systematic and deliberate attempt to undermine the ground on which the housing market in the Bend region is built. The fraud has a direct impact on the health of our economy and, therefore, on the financial well-being of all people in Central Oregon."
The last charged defendant in these cases, Amy Ridley, 54, of Kentucky, pled guilty on Wednesday, September 04, 2013, for her role in the scheme and is scheduled to be sentenced on January 22, 2014, at 9 a.m. before U.S. District Chief Judge Ann Aiken. The maximum penalty for conspiracy to commit wire fraud is 20 years in prison and a $250,000 fine.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Scott E. Bradford.