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28 August 2013
Executive Indicted for Embezzling More Than Half A Million Dollars from Westin HotelRead the Press Release
San Diego, CA - United States Attorney Laura E. Duffy announced that Kevin Kelso, a former Director of Finance at the Westin San Diego, was arraigned yesterday in Los Angeles on charges involving his embezzlement of more than $500,000 from the Westin San Diego.
According to the indictment, Kelso served as the Director of Finance at the Westin San Diego between approximately December 2010 and September 2012. During that time, he embezzled funds using several different methods, including: (1) taking advantage of the hotel’s change order process – by which they converted larger denomination currency into smaller bills in order to make change for customers; (2) using an unauthorized corporate American Express card to pay personal expenses; (3) submitting duplicate expense reports to obtain undeserved reimbursement; (4) reversing charges at the Westin San Diego for his friends and acquaintances; and (5) writing Westin checks to improperly pay himself and third parties.
The defendant was arrested by U.S. Secret Service agents on August 27, 2013, at another hotel, his current place of employment. He was arraigned in the Central District of California before Magistrate Judge Ralph Zarefsky and pled not guilty. Magistrate Judge Zarefsky set bail at $100,000 and ordered the defendant to appear in the Southern District of California in the courtroom of Magistrate William V. Gallo on September 4, 2012 at 2 p.m.
The public is reminded that an indictment is not evidence that the defendant committed the crime charged. The defendant is presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
DEFENDANT Criminal Case No. 13CR3017-DMS Kevin Kelso SUMMARY OF CHARGESCounts 1-6: Title 18, United States Code, Section 1343 – Wire Fraud
Forfeiture: Title 18, United States Code, Sections 981(a)(1)(C) and Title 28, United States Code, Section 246
INVESTIGATING AGENCYUnited States Secret Service
Euclid Man Charged with Child Pornography CrimesRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced today that Joseph D. Weiss, 44, of Euclid, Ohio, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.
The indictment charges that from on or about March 4, 2013, through on or about March 15, 2013, Weiss knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. On March 22, 2013, images of child pornography were also found on his external hard drive.
If convicted, the sentence in this case will be determined by the Court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Ohio Internet Crimes Against Children Task Force and the Euclid Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Emory University to Pay $1.5 Million to Settle False Claims Act InvestigationRead the Press Release
University Overbilled Medicare and Medicaid for Patients Enrolled in Clinical Trial Research at Emory’s Winship Cancer Institute
ATLANTA - The United States Attorney’s Office for the Northern District of Georgia and Attorney General Sam Olens announced today they have reached a settlement with Emory University, which agreed to pay $1.5 million to settle claims that it violated the False Claims Act by billing Medicare and Medicaid for clinical trial services that were not permitted by the Medicare and Medicaid rules.
Providers generally are not permitted to bill Medicare for medical care and services for which the clinical trial sponsor has agreed to pay. Here, the United States and the State of Georgia alleged that Emory University billed Medicare and Medicaid for services the clinical trial sponsor agreed to pay (and, in some cases, actually did pay, thereby resulting in Emory’s being paid twice for the same service).
“This settlement demonstrates our office’s continued commitment to protect crucial Medicare and Medicaid dollars,” said United States Attorney Sally Quillian Yates. “Treatment of cancer is expensive, and Medicare and Medicaid dollars should be reserved for patients who need services that properly may be billed to these programs.”
“Our investigation of Emory University revealed the institution’s clinical trial false billing and led to today’s settlement,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General for the Atlanta region. “Protecting Medicare -- and taxpayer dollars -- remains a top priority.”
Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office, stated: “Federal funds, to include those of Medicare and Medicaid, are limited and are to be used as intended. The FBI will continue to play a role in enforcing federal law that governs the use of these much needed funds.”
Attorney General Sam Olens stated, “Cancer research is paramount to saving and extending lives. However, strict rules govern the use of Georgia Medicaid dollars. My office takes seriously its obligation to ensure that these resources are used properly.”
This civil settlement resolves a lawsuit filed by Elizabeth Elliot under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery obtained. The case, pending in the Northern District of Georgia, is filed under United States of America and State of Georgia ex rel. Elizabeth Elliott v. Emory University, et al., Civ. No. 1:09-cv-3569-AT (N.D. Ga. Dec. 18, 2009). Ms. Elliot will receive a share of the settlement payment that resolves the qui tam suit that she filed. The claims settled in the civil settlement are allegations only, and there has been no determination of liability.
This case was investigated by the United States Attorney’s Office for the Northern District of Georgia; the U.S. Department of Health & Human Services, Office of Inspector General; the Federal Bureau of Investigation; and the Georgia Medicaid Fraud Control Unit.
The civil settlement was reached by Assistant United States Attorney Darcy F. Coty.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.Emory Settlement Agreement
Eldora Man Charged with Federal Child Sexual Exploitation OffensesRead the Press Release
Kevin Trittien, age 35, of Eldora, Iowa, has been indicted on federal child sexual exploitation charges. The charges are contained in an Indictment unsealed August 23, 2013, in United States District Court in Cedar Rapids.
The Indictment alleges that, in 2012, Trittien used the Internet to attempt to persuade a person defendant believed to be under sixteen to engage in sexual activity. The Indictment also alleges that, between 2009 and 2012, Trittien distributed, received, and possessed child pornography.
If convicted on all charges, Trittien faces a mandatory minimum sentence of ten years’ imprisonment and a possible maximum sentence of life imprisonment, a $1,000,000 fine, a $400 special assessment, and at least five years and up to life on supervised release following any imprisonment.
Trittien appeared for a detention hearing today in federal court in Cedar Rapids and was held without bond. Trittien’s next appearance for trial is set for October 28, 2013.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Garner Police Department, the Iowa Division of Criminal Investigation, the Hancock County Sheriff’s Office, and the Grundy County Sheriff’s Office.
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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-67.
Delano Man Pleads Guilty to Robbing Buffalo McDonald’sRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a 34-year-old Delano man pleaded guilty to committing the April 24, 2013, robbery of a McDonald’s in Buffalo. On August 27, 2013, Matthew Dillon Sisneros pleaded guilty to one count of interference with commerce by robbery, pursuant to the Hobbs Act, and one count of possession of a firearm in furtherance of a crime of violence. Sisneros, who was indicted on June 3, 2013, entered his plea before United States District Judge Ann D. Montgomery.
In his plea agreement, Sisneros admitted that on April 24, 2013, he took $3,266 from the restaurant and, with a firearm, threatened violence against the employees. Upon entering the restaurant, Sisneros admittedly pointed a sawed-off 12-gauge shotgun at employees and demanded money. After receiving the money, he ran to a waiting vehicle and left the area.
The Hobbs Act, passed by Congress in 1946, allows federal prosecutors to prosecute individuals who commit armed robberies of businesses engaged in interstate commerce.
For his crimes, Sisneros faces a potential maximum penalty of 20 years in prison for robbery and a mandatory minimum penalty of ten years for possession of a firearm in furtherance of a crime of violence. Judge Montgomery will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Buffalo Police Department, the Wright County Sheriff’s Office, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, with cooperation from the Minnesota Bureau of Criminal Apprehension. It is being prosecuted by Assistant U.S. Attorneys Julie E. Allyn and Laura M. Provinzino.Dayton Man Pleads Guilty to Being an Armed Career CriminalRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON, OHIO – Mickey Allen Fugate, Jr, 40, of Dayton, Ohio pleaded guilty in U.S. District Court to one count of interference with commerce by threats or violence (Hobbs Act) and one count of possession of a firearm following three or more violent felony convictions, (Armed Career Criminal Act). If the court accepts the terms of the plea agreement, Fugate will serve at least 20 and up to 30 years in prison.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, and Dayton Police Chief Richard Biehl announced the pleas entered today before U.S. District Judge Walter H. Rice.
According to court documents, Fugate robbed at gunpoint the Kwik-n-Kold convenience store on Wyoming Street in Dayton on November 14, 2009. During the robbery, Fugate shot and wounded one of the employees and fled with less than $500 in cash.
Officers with the FBI Dayton Safe Streets Task Force recovered a 9mm firearm loaded with nine rounds of ammunition, the store’s cash register tray, a tip jar and approximately $168 from a residence to which Fugate fled following the robbery. Fugate was arrested and has been in custody since his arrest.
Fugate’s criminal record includes prior federal convictions for bank robbery, use of firearms in a crime of violence and attempted escape, and two burglary convictions in state court. Under federal law, this qualifies Fugate as an armed career criminal.
The court will conduct a pre-sentence investigation and determine whether or not to accept the terms of the plea agreement.
U.S. Attorney Stewart commended the cooperative investigation by special agents of the FBI and Dayton Police, as well as Assistant U.S. Attorneys Vipal Patel and Mary Beth Young, who are prosecuting the case.
Cleveland Man Charged with Robbing Shaker Heights BanksRead the Press Release
A Cleveland man was indicted on charges related to the robbery of a Shaker Heights bank, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Charles D. Moore, 28, was indicted on one count of armed bank bobbery. This charge arises from the July 9, 2013, bank robbery of the PNC Bank at 20711 Chagrin Boulevard. in Shaker Heights, Ohio, when Moore held the bank manager at gunpoint and stole approximately $46,000 from the bank's tellers, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant's prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant United States Attorneys Margaret A. Sweeney following an investigation by the Cleveland and Pittsburgh Field Offices of the Federal Bureau of Investigation and the Shaker Heights Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cleveland Man Charged with Child Pornography CrimesRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced today that Steven L. Lantz, 30, of Cleveland, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.
The indictment charges that from on or about June 30, 2012, through on or about October 15, 2012, Lantz knowingly received and distributed, by computer, numerous computer files, which contained visual depictions of real minors engaged in sexually explicit conduct. On October 31, 2012, images of child pornography were also found on his Toshiba laptop computer.
If convicted, the sentence in this case will be determined by the Court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Carol M. Skutnik. The case was investigated by the Department of Homeland Security, Immigration and Customs Enforcement.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Christopher Cleveland Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on August 28, 2013, before Senior U.S. District Judge Jack D. Shanstrom, CHRISTOPHER CLEVELAND, a 34-year-old resident of Billings, appeared for sentencing. CLEVELAND was sentenced to a term of:
Prison: 72 months
Special Assessment: $100
Supervised Release: 5 years
CLEVELAND was sentenced in connection with his guilty plea to conspiracy to possess with intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Marcia K. Hurd, the government stated it would have proved at trial the following:
CLEVELAND came to the attention of law enforcement officers as part of the large drug case. CLEVELAND was identified as a person who purchased large amounts of methamphetamine from Las Vegas on behalf of supplier Howard Bonifant in Billings to distribute to his distributor network here. Other witnesses identified CLEVELAND as a distribution source from Bonifant. At first, CLEVELAND received the methamphetamine from Sheila Coffman, who received it directly from the Vegas source beginning in January 2010. Later in 2010 Coffman got out of the ring and introduced CLEVELAND to the Vegas sources and he then began getting it directly from Johnathan Balbin, Antonio Taylor, and Justin Fultz. CLEVELAND received significantly more than several pounds from each of the suppliers during the time he was involved. His involvement ended in November of 2010 when Taylor was arrested in Billings.
When questioned, CLEVELAND admitted his role within the conspiracy but noted that he had discontinued his involvement and had been clean for the last several years.
Bonifant, Coffman, Balbin, Taylor and Fultz pled guilty to federal charges and have been sentenced.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that CLEVELAND will likely serve all of the time imposed by the court. In the federal system, CLEVELAND does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Billings Big Sky Safe Streets Task Force, the Billings Police Department, and the Federal Bureau of Investigation.
Brothers Charged with Setting Fires on the Bayou Sauvage National Wildlife RefugeRead the Press Release
RYAN BURLETT, age 34, and DAMIEN BURLETT, age 39, both residents of Orleans Parish, were charged today in a one-count Bill of Information for setting fires on the Bayou Sauvage National Wildlife Refuge in violation of Title 16, United States Code, Section 688 dd(c), (f)(1), announced United States Attorney Dana Boente.
According to the Bill of Information, on February 9, 2012, a pilot with the Louisiana Department of Agriculture, while on aerial patrol in a Cessna over Slidell, Louisiana, spotted a column of smoke emanating from the Bayou Sauvage National Wildlife Refuge in New Orleans East. After seeing the smoke column, the pilot flew to the refuge and observed a fire burning on a marsh patch. The pilot also observed two men in a small boat leaving the area of the fire at a high rate of speed. Suspecting that they might have started the fire, the pilot began to follow the boat in an effort to identify them and photograph their activity. As he followed their boat, the pilot witnessed the men start two more fires on marsh patches located within the Refuge. After setting those fires, the men drove their boat to a dock located behind a residence in the Venetian Isles subdivision. The pilot then turned over the photographs of the two men, their boat, and the Venetian Isles residence to agents with the U.S. Fish and Wildlife Services for further investigation. Through their investigation, the agents were able to identify RYAN and DAMIEN BURLETT as the two men that set the fires in the Refuge. After confirming their identities, the agents interviewed the BURLETT brothers at New Orleans Fire Department Station 31, where they both worked as firemen. During the interview, they admitted that they were the two individuals in the photographs that the pilot took the day of the incident.
If convicted, each face a maximum term of imprisonment of one year, a fine of $100,000.00, a maximum supervised release term of one year following any term of imprisonment, and a $25 special assessment fee.
U.S. Attorney Dana Boente reiterated that the bill of information is merely a charge, and that the guilt of the defendants must be proven beyond a reasonable doubt.
The case was investigated by the U.S. Fish and Wildlife Service. The case is being prosecuted by Assistant U. S. Attorney Spiro G. Latsis.
(Download Bill of Information )
Birmingham Woman Sentenced for Multi-State Identity Theft ConspiracyRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Birmingham woman to more than six years in prison for her role in a multi-state identity-theft and counterfeit-check scheme that included recruiting homeless people to cash the fraudulent checks, announced U.S. Attorney Joyce White Vance, U.S. Postal Inspector in Charge Keith Morris, FBI Special Agent in Charge Richard D. Schwein Jr., and U.S. Secret Service Acting Special Agent in Charge Jeff Anderson.
DAPHNE COLLETTE TATE, 42, pleaded guilty in April to conspiring with five other people to defraud more than two dozen banks in Alabama, Georgia and Florida. She also pleaded guilty to aggravated identity theft, possessing a business check stolen from the U.S. mail, and possessing a counterfeit check. U.S. District Judge L. Scott Coogler sentenced her to six years and two months in prison for those crimes.
The five other defendants charged along with Tate in the multi-state identity-theft conspiracy are Tate's cousin, KEITH LAMAR REESE, 46, also of Birmingham, and four Atlanta-area residents, COLUNDRIA SEATS, 37, DEMARIO S. MORMON, 27, CLIFFTON A. MORMON, 30, and BRETT E. FALCONER, 27.
Reese and Falconer have pled guilty to conspiracy to commit bank fraud and aggravated identity theft. DeMario Mormon remains a fugitive. Seats was arrested in June; Cliffton Mormon was arrested in July, and their cases are proceeding toward trial.
According to Tate's indictment and other court records, Tate and other conspirators conducted their scheme in Alabama, Georgia and Florida between September 2011 and February 2013 as follows:
They obtained account and routing information for various businesses’ legitimate checking accounts in at least 25 banks through various means, including stealing checks from the mail and engaging people who had access to account information. Falconer was employed by Regions Bank and accessed the bank’s records for the conspiracy during her employment. Falconer provided co-conspirators with information from Regions’ accounts and from checks presented at Regions Bank. Other conspirators, including Demario and Cliffton Mormon, used that genuine account and routing information to manufacture counterfeit business checks.
Tate, Seats and Reese would locate people, often the homeless, who had government-issued identification cards and would join the conspiracy as check-cashers. Tate, Seats, Reese and other co-conspirators would transport the check-cashers to locations where they would cash or attempt to cash the counterfeit checks. Members of the conspiracy would divide the proceeds of the successfully cashed checks among themselves.
This case was investigated by the U.S. Postal Inspection Service, the FBI, the U.S. Secret Service, and the Pelham, Trussville and Vestavia Hills police departments, with assistance from Regions Bank corporate investigators. Assistant U.S. Attorney Melissa K. Atwood is prosecuting the case.Attorney General Eric Holder Announces $2.5 Million <br /> to Connecticut Law Enforcement for Costs Related to <br /> Sandy Hook School ShootingsRead the Press Release
Attorney General Eric Holder announced today that the Justice Department’s Bureau of Justice Assistance (BJA) will provide $2.5 million in funding to the Connecticut State Police, the Newtown, Conn., Police Department and their partner agencies that provided assistance in response to the shootings at Sandy Hook Elementary School last year. The funding compensates the agencies and jurisdictions for costs related to overtime, forensics and security during and in the aftermath of the crime.
“Providing support to the law enforcement agencies that responded to the horrific scene that awaited them at Sandy Hook Elementary School is one small action we can take to bring healing to a community that’s been devastated,” said Attorney General Holder. “Just over eight months after this senseless tragedy, those who lost their lives, and those who continue to grieve, remain in our thoughts and prayers.”
The funding is made available through BJA’s FY 2013 Edward Byrne Justice Assistance Grant Program and is scheduled for distribution as follows:
Connecticut State Police $663,444
Town of Newtown $602,293
Town of Monroe $882,812
Partner Agencies* $296,836* Connecticut jurisdictions of Avon, Bethel, Bloomfield, Bridgeport, Brookfield, Clinton, Coventry, Danbury, Darien, Easton, Fairfield, Glastonbury, Groton, Meriden, Middletown, New Britain, Newington, New Canaan, New Milford, Norwalk, Orange, Plainville, Redding, Ridgefield, Seymour, Shelton, Southington, Stratford, Trumball, Waterbury, Watertown, Wilton, Weston and Wolcott.
“This critical funding will compensate the Connecticut State Police and Newtown Police Department for their tireless work investigating this crime, as well as more than two dozen police departments from across the state whose officers responded to Newtown within minutes of this horrific act and, for months, helped to provide security and comfort to a courageous community,” said Acting U.S. Attorney for the District of Connecticut Deirdre M. Daly.
The Bureau of Justice Assistance is one of six components of the Office of Justice Programs (OJP) which is headed by Assistant Attorney General Karol V. Mason. OJP provides federal leadership in developing the nation's capacity to prevent and control crime, administer justice and assist victims. OJP’s six components include: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking.
For more information about OJP, please visit: www.ojp.gov.
Albuquerque, New Mexico, Resident Sentenced to 60 Months for Possession of Marijuana with Intent to DistributeRead the Press Release
COUNCIL BLUFFS, IA- On August 27, 2013, Oscar Salinas-Olivas, a 34 year old resident of Albuquerque, New Mexico, was sentenced by United States District Court Judge John A. Jarvey to sixty months in prison for possession with intent to distribute marijuana, and twelve concurrent months for violation of his federal supervised release from New Mexico, announced United States Attorney Nicholas A. Klinefeldt. Judge Jarvey also ordered Salinas-Olivas to serve six years of supervised release following the term of imprisonment, when he will also be subject to deportation.
On May 8, 2013, the defendant pled guilty to being in possession with intent to distribute marijuana and admitted the violation of the terms of his supervised release. The charge was the result of a traffic stop by Iowa State Patrol on January 16, 2013. Salinas-Olivas was driving the vehicle when he was stopped for speeding. A subsequent search found approximately 320 pounds of marijuana. Salinas-Olivas was on supervised release from New Mexico for a 2010 conviction of being an illegal alien in possession of a firearm.
The investigation was conducted by the Iowa State Patrol, Immigration and Customs Enforcement, and the Iowa Department of Narcotics Enforcement, and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Alamance County Residents Sentenced for Health Care FraudRead the Press Release
Ordered to serve prison time and pay restitutionGREENSBORO, N.C. – United States Attorney Ripley Rand of the Middle District of North Carolina announced today that two Alamance County residents have been sentenced to prison for defrauding the Medicaid program.
EVELYN FULLER, 61, and MICHAEL McLEAN, 57, were sentenced by United States District Judge Catherine Eagles in federal court in Greensboro, North Carolina, on Tuesday, August 27, 2013. FULLER was sentenced to 26 months imprisonment. Her co-defendant, McLEAN, was sentenced to 36 months imprisonment. FULLER and McLEAN were also ordered to pay restitution to the Medicaid program in the amount of $399,811.44. Both FULLER and McLEAN will serve three years of supervised release after serving their prison sentences.
FULLER and McLEAN plead guilty on February 27, 2013, to health care fraud charges in connection with a scheme to defraud the North Carolina State Medicaid program in connection with community support services. Both worked for a company called Harvest House Community Development Corporation, through which they submitted false claims to the Medicaid program for community support services which were not actually rendered. Community support services are rehabilitative services for eligible children and adults in which the clinical and diagnostic needs of the clients are arranged, coordinated, and monitored.
The case was prosecuted by Assistant United States Attorney Robert M. Hamilton and Special Assistant United States Attorney and Assistant Attorney General Jacqueline Perez of the Medicaid Investigations Division of the North Carolina Attorney General’s Office. The case was investigated by the North Carolina Medicaid Investigations Division and the Office of the Inspector General of the United States Department of Health and Human Services.
Additional Charges, $1.3 Million Judgment against Springfield, Kirbyville Men Indicted for K2 ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that additional charges have been brought against a Springfield, Mo., man and two Kirbyville, Mo., men for their roles in a conspiracy to distribute synthetic marijuana, commonly referred to as K2, including a money judgment of more than $1.3 million.
Travis E. Butchee, also known as “Donkey,” 37, of Springfield, and Michael J. Saguto, 42, and Christian L. Turner, 45, both of Kirbyville, were charged in a 16-count superseding indictment returned by a federal grand jury in Springfield on Tuesday, Aug. 27, 2013. The superseding indictment replaces an indictment that was returned on June 12, 2013 and contains 10 additional counts of distributing a controlled substance and money laundering, as well as additional forfeiture allegations.
Butchee opened The Man Cave, a retail business at 1927 S.Glenstone in Springfield, in February 2013. Butchee and Saguto are the owners of Southern Spice, LLC and Saguto is the owner of Blues Away, a head shop and novelty store in Memphis, Tenn. Turner was employed by Saguto at Blues Away.
The superseding indictment maintains the allegation that Butchee, Saguto and Turner participated in a mail fraud conspiracy from March 1, 2011 to May 16, 2013. They allegedly devised a scheme to defraud the Food and Drug Administration and to defraud the public in order to profit from false claims that synthetic marijuana products (such as Blazed, Red Eyed, Donkey Punch, Jolly Grape Giant, South of the Tracks, Baby Face, Scarface, Hillbilly Hay and others) – which were mailed or delivered by commercial carriers – were “incense” or “potpourri” and “not for human consumption.” In reality, the indictment says, these substances were synthetic cannabinoids that contained controlled substances and were intended for human consumption as a drug.
The indictment also maintains the allegation that Butchee, Saguto and Turner participated in a conspiracy to distribute a controlled substance. They allegedly manufactured and distributed synthetic cannabinoids using ingredients obtained through the mail from China and Thailand.
In addition to the conspiracy, the superseding indictment now charges Butchee, Saguto and Turner in six counts of distributing a controlled substance.
The superseding indictment also charges Butchee and Saguto with participating in a money-laundering conspiracy from March 1, 2011, to May 16, 2013. Butchee and Saguto allegedly conducted financial transactions that involved the proceeds of the unlawful mail fraud conspiracy and the unlawful drug-trafficking conspiracy. They allegedly conspired to wire funds to the People’s Republic of China in order to carry on those conspiracies.
In addition to the conspiracy, Butchee and Saguto are charged in three counts of money laundering related to specific financial transactions in February 2013.
As in the original indictment, Butchee and Saguto are charged with three counts of maintaining a place for the purpose of unlawfully storing and distributing a controlled substance. They allegedly used residences in Kirbyville, Merriam Woods, Mo., and Springfield to store and distribute synthetic marijuana. Turner is also charged with being a felon in possession of firearms. Turner, having been convicted of a felony, allegedly possessed a Ruger .22-caliber rifle, a Marlin 30-30 caliber rifle, a Rossi .243-caliber rifle with an interchangeable 20-gauge barrel, a Remington 12-gauge shotgun and a Remington .270-caliber rifle.
The indictment also contains a forfeiture allegation, which would require Butchee, Saguto and Turner to forfeit to the government any property obtained from the proceeds of the alleged offenses. In the superseding indictment, that now includes a money judgment of $1,354,034, representing the total amount of money involved in the conspiracy. The forfeiture also includes $31,580 that was seized by law enforcement officers, four rifles and a shotgun.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the U.S. Postal Inspection Service, IRS-Criminal Investigation, the Missouri State Highway Patrol, COMET (Combined Ozarks Multi-jurisdictional Enforcement Team) and the Springfield, Mo., Police Department.126 Individuals Indicted for Drug Trafficking in the Municipality of CaguasRead the Press Release
Defendants face a forfeiture allegation of 76 million dollars
SAN JUAN, Puerto Rico – U.S. Attorney for the District of Puerto Rico Rosa Emilia Rodríguez-Vélez announced the indictment and arrest of 126 defendants charged with conspiracy to possess with intent to distribute, and distribution of controlled substances. Today, FBI agents and officers of the Puerto Rico Police Department (PRPD), the agencies in charge of the investigation, executed the arrest warrants with assistance from the U.S. Drug Enforcement Administration, U.S. Immigration and Customs Enforcement – Homeland Security Investigations, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the U.S. Marshals Service.
The indictment, handed down Aug. 15, 2013 by a federal grand jury and unsealed in federal court today, charges 126 individuals with conspiracy to knowingly and intentionally possess with intent to distribute cocaine base (crack), heroin, cocaine, marihuana, Oxycodone (commonly known as Percocet) and Alprazolam (commonly known as Xanax), all within 1,000 feet of the real property comprising a public or private school and/or playground at the Morales Ward (Barriada Morales) in the Municipality of Caguas, Puerto Rico.
The indictment alleges that beginning in 2005, the organization operated six different drug points located within Barriada Morales. These drug points would have fixed prices for each type of drug, in order to maintain the parity of the sales among the drug points.The 126 co-conspirators had many roles in order to further the goals of the conspiracy. The following are the roles as alleged in the indictment: 18 leaders or drug point owners; 26 enforcers; three drug processors; 23 runners/suppliers; 40 sellers; and 16 facilitators. All defendants are facing a forfeiture allegation of seventy-six million dollars.
Some of the defendants and their co-conspirators would be paid $500 a week in exchange for their job as enforcers. During the holiday season, the sellers would often receive a cash award or a “Christmas bonus” in addition to their regular pay.
The indictment further alleges that the co-conspirators would have access to different vehicles, usually parked in strategic locations, inside and outside Barriada Morales, in order to transport money, narcotics and firearms. These vehicles would often be used by some of the defendants and their co-conspirators to conduct drive-by shootings and to go out and “hunt” rival gang members.
Fifty-two of the co-conspirators are charged with using and carrying firearms during and in relation to a drug trafficking crime. Some of the defendants and their co-conspirators would often act as look-outs and armed surveillance at five strategically located observation points, used to alert other co-conspirators of the presence of law enforcement agents and/or rival drug traffickers.
During daylight hours the armed surveillance would be conducted with pistols and revolvers. At night, the co-conspirators in charge of the armed surveillance would conduct the same by possessing, carrying and brandishing high power rifles, often altered to function as fully automatic.
The members of the conspiracy used force, violence and intimidation in order to scare rival drug traffickers and members of their own organization. Sometimes, the leaders would discipline the members of their own organization by breaking their legs and arms using an axe handle.
“Violent drug trafficking gangs should take note, and know that we are determined to break their grip on communities, and that they will face severe penalties for their crimes,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “Federal and local law enforcement agencies remain committed to using every tool available to attack these criminal organizations, and to reduce gang violence and bring narcotics and firearms violators to justice.”
“The FBI's message is clear and unequivocal. We will work together with our federal, state and local law enforcement partners to assign all necessary resources to identify, locate, and arrest violent crimes offenders. They will face our justice system. They will be prosecuted to the fullest extent of the law,” said Carlos Cases, Special Agent in Charge of the FBI in Puerto Rico.
Assistant U.S. Attorneys Alberto López-Rocafort and Teresa Zapata and Special Assistant U.S. Attorney Victor O. Acevedo-Hernàndez are in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
The defendants were the targets of a long-term Organized Crime Drug Enforcement Task Force (OCDEFT) investigation, responsible for drug trafficking in Puerto Rico. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
27 August 2013
Woman Faces Five Years in Federal Prison for Filing False Claims in Tax CaseRead the Press Release
DALLAS — Mary Ngacha appeared this morning before U.S. Magistrate Judge David L. Horan and pleaded guilty to one count of filing false claims against an agency of the United States. She faces a maximum statutory penalty of five years in federal prison, a $250,000 fine and restitution. Ngacha will remain on bond, pending sentencing, which is scheduled for December 4, 2013, before U.S. District Judge Ed Kinkeade. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Ngacha’s co-defendant in the case, Harriet Mathita, pleaded guilty in November 2012 to a related tax offense and is currently serving a 30-month federal prison sentence. She was also ordered to pay $45,906 in restitution.
According to the factual resume filed in her case, Mathita admitted that from December 2009 through June 2010, an individual in Dallas, later identified as Ngacha, mailed multiple federal tax returns to the IRS that used stolen identification information and made false and fictitious claims for payment of tax refunds. Each return contained a false Form W-2 that reported significant, although fictitious, wages and withholding so as to result in a claim for a large tax refund. The returns directed the IRS to pay the refund either into a bank account or a physical address controlled by a conspirator.
The factual resume further stated that three of these fraudulent tax returns directed the refund check to be delivered to the Mathita’s address in Plano, Texas. In May 2010, a U.S. Treasury check in the amount of $45,206 was, in fact, delivered to her Plano address. Only one of the three fraudulent returns actually resulted in a refund check being mailed; the other refunds were not released by the IRS.
Ngacha, according to the order setting the conditions of her release, is a Dallas resident.
According to the stipulated facts outlined in her factual resume, from at least November 2009 through April 2010, Ngacha willfully assisted in the preparation of, and then filed, 10 federal income tax returns that contained false information. These returns had been mailed to Ngacha from an accomplice located outside the United States. After receiving them, Ngacha printed them, signed the purported taxpayer’s name and then mailed them to the IRS for processing. These returns used the last names and social security numbers of taxpayers without their knowledge or authorization and each return included a false form W-2 with fictitious wages and withholding amounts. A form schedule C was also attached showing a substantial business loss from a sole proprietorship.
Specifically, on November 2, 2009, according to the factual resume, Ngacha signed and then mailed to the IRS a tax return in the name of “Motachwa Poliquin” that used the social security number belonging to an individual that had been used without that individual’s knowledge or consent. The return also included a fictitious form W-2 that falsely reported “Motachwa Poliquin” had earned $495,855 from Fann Contracting for 2008 and that $152,054 had been withheld by the IRS. The return claimed a $147,464 refund and directed the IRS to electronically deposit that refund into an account at JPMorgan Chase Bank that Ngacha had opened. On November 27, 2011, the IRS electronically deposited the “Poliquin” refund of $148,264 into that account, and on the same day, Ngacha transferred the entire amount from that account to her personal bank account at JPMorgan Chase. Ngacha then wired $100,000 of that amount to a bank in Nairobi, Kenya, and spent the rest of the refund for her own personal use and benefit.
The investigation was conducted by IRS-CI. Assistant U.S. Attorney Christopher Stokes is in charge of the prosecution.
Wilma Jamie Rae Hoyt Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on August 27, 2013, before Chief U.S. District Judge Dana L. Christensen, WILMA JAMIE RAE HOYT, a 29-year-old resident of Browning, was sentenced to a term of:
Prison: 60 months
Special Assessment: $100
Supervised Release: 4 years
HOYT was sentenced in connection with her guilty plea to conspiracy to possess with the intent to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Ryan G. Weldon, the government stated it would have proved at trial the following:
On February 23, 2012, "X.X." and HOYT were arrested in Browning. X.X. was arrested because he had a state warrant out for his arrest. HOYT was arrested for a federal warrant because she violated conditions of her supervised release. At the time of the arrest, law enforcement collected $600 in U.S. currency from X.X. The money was claimed to be from X.X.'s "tax return."
When interviewed, HOYT stated that she first became romantically involved with X.X. in approximately 2009 or 2010. Both X.X. and HOYT were initially "clean," but X.X. lost his job, and they were in need of money to maintain their household and take care of their children. HOYT admitted that is when they began selling methamphetamine for income.
In approximately February or March of 2011, HOYT admitted that individuals approached her and X.X., requesting that they sell methamphetamine. X.X. and HOYT complied with such a request, and this relationship lasted until January of 2012. X.X. and HOYT would receive three grams of methamphetamine at a time. HOYT estimated that she received methamphetamine, to sell, every week, and the longest without receiving drugs was three weeks.
HOYT explained that, after selling for awhile, she met another methamphetamine dealer, who provided her and X.X. with a higher-quality methamphetamine. This new dealer initially provided them with a "weighed out gram" of methamphetamine, which they would break down and sell. However, as the relationship grew, so did the amounts that the new distributor provided. For example, the new distributor eventually provided HOYT and X.X. with a "weighed out eight ball." In total, HOYT stated that the new distributor provided them a "weighed out gram" on six occasions and a "weighed out eight ball" on three occasions.
Law enforcement interviewed X.X. the day after interviewing HOYT. X.X. also admitted that he began selling methamphetamine, and stated that such sales began from late December 2010, until approximately June 2011. X.X. provided specifics as to amounts sold and prices paid to the distributors.
The FBI interviewed various "customers" of HOYT and X.X.. These individuals confirmed that HOYT and X.X. sold methamphetamine, and the amounts of the conspiracy involved more than 50 grams of a substance containing a detectable amount of methamphetamine.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that HOYT will likely serve all of the time imposed by the court. In the federal system, HOYT does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Volunteer Firefighter Sentenced to Three-Year Prison TermRead the Press Release
For Armed Robbery of Ex-Girlfriend
-Defendant and Four Others Used Two Shotguns and Masks During the Robbery-WASHINGTON – Jayson Lassiter, 23, a volunteer firefighter from Clinton, Md., has been sentenced to a three-year prison term for an armed robbery he committed earlier this year in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced today.
Lassiter pled guilty in June 2013 in the Superior Court for the District of Columbia to armed robbery. He was sentenced on Aug. 26, 2013, by the Honorable Michael Ryan. Upon completion of his prison term, Lassiter will be placed on five years of supervised release.
According to the government’s factual proffer at the plea hearing, during the afternoon of March 26, 2013, Lassiter drove three other volunteer firefighters, all from the Prince George’s County Fire Department, to the 1300 block of Michigan Avenue NE, where his ex-girlfriend was staying. They went there to retrieve a cellular phone Lassiter had given his ex-girlfriend for Christmas. After a brief verbal altercation, they left the area without obtaining the cellular phone. The group then returned to Prince George’s County to assist fighting a fire.
Afterwards, Lassiter and two of the three volunteer firefighters he was with that afternoon decided to return to the 1300 block of Michigan Avenue NE to retrieve the cellular phone. Lassiter picked up two additional accomplices - family members of one of the volunteer firefighters. Then, under cover of night, they returned armed with two shotguns and masks.
As they approached the home where Lassiter’s ex-girlfriend was staying, Lassiter let the four accomplices out in an alley and proceeded to the home alone to draw the ex-girlfriend and others outside. As soon as the victims came out of the house, Lassiter’s masked and armed accomplices began assaulting them. One of Lassiter’s accomplices, Kevin Smith, 19, of Suitland, Md., pointed a shotgun at Lassiter’s ex-girlfriend and another male and ordered them into the home. Once inside the home, Smith stole their cellular phones and hit the male in the face with the butt of the shotgun, breaking his nose.
Lassiter and the four accomplices fled the scene in Lassiter’s car. Three of the suspects were immediately identified by the victims. A fourth was later identified through additional investigation. To date, all four identified suspects have pled guilty to charges arising from this incident. Lassiter was the first to be sentenced.
In announcing the sentence, U.S. Attorney Machen commended the work performed by those who investigated the case from the Metropolitan Police Department. He also praised those who handled the case for the U.S. Attorney’s Office, including Victim/Witness Advocate Maria Shumar and Paralegal Specialist Jason Manuel. Finally, he commended the efforts of Assistant U.S. Attorney Jeff T. Cook, who investigated and prosecuted the matter.
13-293Van Zandt County Man Sentenced for Firearms ViolationRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas - A 37-year-old Wills Point, Texas man has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Michael Jack Callaway pleaded guilty on Nov. 20, 2012, to possession of an unregistered firearm and was sentenced to 120 months in federal prison today by U.S. District Judge Leonard Davis. Callaway was also ordered to forfeit the shotgun and seven additional firearms to the government.
According to information presented in court, on Aug. 22, 2012, law enforcement officers found a short barrel shotgun among several rifles, pistols, and shotguns, as well as several hundreds of rounds of ammunition, when they ran a search warrant at Callaway’s residence on County Road 2144 in Wills Point, Texas.
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Van Zandt County Drug Task Force and prosecuted by Assistant U.S. Attorney Jim Noble.Van Zandt County Man Guilty of Dealing Methamphetamine in East TexasRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 51-year-old Fruitvale, Texas man has pleaded guilty to drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Billie Earl Johnson pleaded guilty to conspiracy to possess with intent to distribute and distribution of methamphetamine today before U.S. Magistrate Judge K. Nicole Mitchell.
According to information presented in court, up until December 2010, Johnson conspired with others to acquire and distribute methamphetamine in the Eastern District of Texas and elsewhere. Johnson admitted to being responsible for assisting in the distribution of more than 50 grams of methamphetamine. He also admitted to possessing a firearm during his drug trafficking activities. A federal grand jury returned an indictment on Nov. 7, 2012, charging Johnson and two others with drug trafficking violations.
Johnson faces a minimum of 10 years in federal prison at sentencing. A sentencing date has not been set.
This case was investigated by the Drug Enforcement Administration and the Mineola Police Department and prosecuted by Assistant U.S. Attorney Bill Baldwin.Valley Man Sentenced to 87 Months for Receiving Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Tanner D. Jurgens, 34, of Valley was sentenced in the United States District Court in Omaha for receiving and distributing child pornography. The Honorable John M. Gerrard sentenced Jurgens to 87 months of imprisonment. There is no parole in the federal system. After his release from prison Jurgens will begin a ten year term of supervised release and will be required to register as a sex offender.
On February 15, 2013, investigators with the FBI Cyber Crimes Task Force served a search warrant seeking evidence of child pornography at Jurgen’s home in Valley, Nebraska. Forty (40) videos and 800 images of child pornography were located on computers in the residence. The videos included a substantial number of prepubescent children engaged in sexual acts.
Jurgens admitted to downloading and deleting child pornography over a twenty (20) year period. A review of the search terms used by Jurgens to locate child pornography included terms seeking images of 3, 6, 7 and 10 year old children.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Union County, N.J., Woman Convicted of Fraud Leading to Theft of $7 Million in Charity HIV and Cancer MedicationRead the Press Release
Medicines had been donated to be used for indigent patients
TRENTON, N.J. – A Union County, N.J., woman was convicted today for her role in defrauding a charity program out of more than $7 million in donated HIV and cancer medication by using her access to a company hired to administer the program, U.S. Attorney Paul J. Fishman announced.
Lateefah McKenzie Body, 35, of Linden, N.J., was convicted of one count of conspiracy to commit mail fraud and nine counts of mail fraud following a two-week trial before U.S. District Judge Mary L. Cooper in Trenton federal court. The jury deliberated for one day before finding McKenzie Body guilty on all counts.
On Nov. 13, 2012, Keisha Jackson, 47, of Perth Amboy, N.J., and Jameshia Bryant, 27, of South River, N.J., pleaded guilty to related charges and admitted their involvement in the fraud conspiracy. They are awaiting sentencing.
According to documents filed in this case and the evidence at trial:
A pharmaceutical company donated millions of dollars’ worth of FDA-approved prescription medicines – including for the treatment of HIV and cancer – at no cost to qualified patients experiencing financial difficulties. Jackson, Bryant, and McKenzie Body were all, at various times, employed as customer service representatives at a corporation hired to provide administrative support in operating the donated medicines program. They were responsible for receiving applications for the program, entering the applications into the computer system, and using the computer system to cause the donated medicines to be delivered to the physicians of patients who met certain eligibility criteria, including financial status.
As part of the scheme, McKenzie Body entered approximately 600 fraudulent orders into the company’s system, causing medicines to be delivered to Jackson’s home and other addresses controlled by those involved in the scheme. After McKenzie Body was terminated from the company for unrelated reasons, McKenzie Body enlisted Bryant to take over entering fraudulent orders. Bryant agreed, and entered approximately 950 fraudulent orders, again causing medicines, which could then be resold at a profit, to be delivered to Jackson’s home and other addresses controlled by those involved in the scheme.
Each of the 10 counts is punishable by a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. Sentencing for McKenzie Body is scheduled for Dec. 12, 2013.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to today’s guilty verdict.
The government is represented by Assistant U.S. Attorneys Andrew Leven of the Healthcare and Government Fraud Unit and Danielle Corcione of the General Crimes Unit in Newark.13-348
Defense Counsel: James Patton Esq., Livingston, N.J.U.S. Attorney’s Office Co-hosts Officer Safety and Survival TrainingOver 400 Massachusetts Law Enforcement Received Training This YearRead the Press Release
BOSTON – The United States Attorney’s Office in partnership with the Holden Police Department, the New England State Police Information Network® (NESPIN), and Anna Maria College hosted VALOR® Officer Safety and Survival Training for over 200 local and state law enforcement officers. The training is sponsored by the Department of Justice’s Bureau of Justice Assistance (BJA) and facilitated by the Institute for Intergovernmental Research (IIR). In April, IIR provided the training to over 200 Massachusetts law enforcement officers at Hanscom Air Force Base.
The Preventing Violence Against Law Enforcement and Ensuring Officer Resilience and Survivability (VALOR®) Specialized Program is a one-day BJA grant-funded training designed for front-line law enforcement to promote officer safety and to help prevent injuries and deaths to officers in the line of duty. During the training, participants learn to identify signs of emerging threats such as detecting concealed weapons and armed gunman. Additionally, officers gain knowledge of the mental and physical skills necessary for surviving high-risk tactical situations that may involve armed shooters. And most importantly, officers receive a critical review of emergency casualty care to respond to self-injuries and those of fellow officers. Taught by experienced law enforcement professionals from around the country, the VALOR® Program combines relevant sets of best practices with real-world experience.
“Our law enforcement officers face tremendous risks each day to keep every citizen safe,” said U.S. Attorney Carmen M. Ortiz. “It is their job to respond to unpredictable situations that may require them to put their safety in jeopardy. So it is incumbent upon us to reduce preventable injuries and deaths by emphasizing officer safety and appropriate training. The VALOR® Program aims to do just that by training officers in the most up-to-date techniques and procedures.”
Holden Police Chief George R. Sherrill said, “It is a pleasure to host this valuable training to the central Massachusetts law enforcement community. Officer safety training is so valuable and necessary as we respond each and every day in our communities. Special thanks to Anna Maria College President Jack Calareso for offering Anna Maria College as a host site."“NESPIN and the RISS Program are proud to be a long time partner with the VALOR Program which brings vital officer safety training to our law enforcement officers, not only here in New England, but for officers throughout the United States,” said Donald Kennedy, Executive Director of NESPIN.
This training would not have been possible without the Holden Police Department, Anna Maria College, NESPIN and the staff at IIR.Two Sioux City Men Plead Guilty to Methamphetamine ConspiracyRead the Press Release
Two men who conspired to distribute methamphetamine pled guilty July 23, 2013, and August 26, 2013, in federal court in Sioux City.
Robert Skarin, and William Meisner, both 53 and from Sioux City, Iowa, were convicted of conspiracy to distribute methamphetamine.
At the plea hearings, each admitted that from the beginning of 2013 through April 2013 they distributed more than 50 grams of actual (pure) methamphetamine in the Sioux City, Iowa area. Each further admitted that on at least two occasions they traveled together to Omaha, Nebraska, to obtain methamphetamine for later distribution in Sioux City. On April 3, 2013, law enforcement conducted a traffic stop of a vehicle driven by Skarin with Meisner as passenger. A search yielded a brown paper bag rolled up and hidden inside Skarin’s right sock. The bag contained over 80 grams of actual (pure) methamphetamine. Skarin and Meisner intended to distribute some or all of this methamphetamine.
Sentencing before United States District Court Judge Mark W. Bennett will be set after presentence reports are prepared. Each were taken into custody by the United States Marshal after the guilty pleas and will remain in custody pending sentencing. Skarin and Meisner each face a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, a special assessment of $100, and five years up to life of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, which consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and the Woodbury County Attorney’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-4035.
Two Men Federally Indicted for Armed Robbery of Milwaukee Food MarketRead the Press Release
United States Attorney James L. Santelle announced today that two Milwaukee men were indicted for the June 25, 2013 armed robbery of the Tobruk Food Market in Milwaukee. Artemus Taylor (age: 21), and Joshua Childress, (age: 20), were charged with one count of interference with commerce by robbery pursuant to the Hobbs Act and one count of brandishing a firearm in furtherance of a crime of violence.
The indictment alleges that on June 25, 2013, the defendants, armed with a firearm, robbed the Tobruk Food Market located at 4401 West Lisbon Avenue in Milwaukee, Wisconsin. If convicted, each man faces up to 20 years in prison on the armed robbery count and a minimum mandatory sentence of 7 years and up to life in prison on the charge of use of a firearm during a robbery.
The Hobbs Act, passed by Congress in 1946, provides federal jurisdiction for cases involving violent, habitual criminals who commit armed robbery of businesses involved in interstate commerce. The U.S. Attorney’s Office and the District Attorney’s Office collaborate together to ensure that violent offenders are effectively prosecuted, making our communities safer for all.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Milwaukee Police Department. It is being prosecuted by Assistant United States Attorney Margaret B. Honrath
The public is cautioned that an indictment is merely a charge and the defendant is presumed innocent until and unless proven guilty.
Trio Pleads Guilty to Filing Fraudulent Claims for Federal Income Tax RefundsRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON, OHIO – Saleen M. Nolan, 26 of Dayton, Ohio pleaded guilty to one count of conspiracy to file false claims for federal income tax refunds with the Internal Revenue Service (IRS). Nolan faces a maximum prison sentence of 10 years and a fine of up to $250,000.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Cincinnati Field Office and Gavin McClaren, Resident Agent in Charge, U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, Cleveland, Ohio announced the guilty plea entered yesterday before U.S. Magistrate Judge Sharon L. Ovington.
According to court documents, between March 2008 and March 2009 Nolan, a VA employee, participated in a conspiracy to obtain personal identifying information, including dates of birth, Social Security numbers, and addresses from individuals who lived in the Dayton, Ohio area. Nolan used this personal identification information to fraudulently prepare and submit to the IRS false income tax returns in the names of dozens of other individuals. Each of these income tax returns falsely claimed that the purported taxpayer was entitled to a substantial income tax refund from the IRS.
In filing these false claims for income tax refunds, as well as checking on the status of the income tax refunds, Nolan used a government computer that belonged to the Department of Veteran Affairs. Nolan kept a portion of the fraudulent income tax refunds and provided the remainder to the taxpayer identified on the fraudulent income tax return.
Nolan was released on bond pending sentencing. A date for sentencing has not yet been set.
On August 15, 2013 Ebony F. Taste, 27, of Trotwood, Ohio pleaded guilty to one count of one count of conspiracy to file false claims for federal income tax refunds with the IRS. Between March 2008 and March 2009 Taste participated in a conspiracy to obtain personal identifying information, including dates of birth, Social Security numbers, and addresses from individuals who lived in the Dayton, Ohio area. Taste used this personal identification information to fraudulently prepare and submit to the IRS false income tax returns in the names of dozens of other individuals. Each of these income tax returns falsely claimed that the purported taxpayer was entitled to a substantial income tax refund from the IRS. Taste kept a portion of the fraudulent income tax refund and provided the remainder to the taxpayer identified on the fraudulent income tax return.
On August 15, 2013 Jazmen Yates, 30, of Galloway, Ohio pleaded guilty to one count of filing false claims for federal income tax refunds with the IRS. In February 2009 Yates knowingly submitted a false and fraudulent claim for an income tax refund to the IRS in excess of several thousand dollars by filing a false income tax return with the IRS in her name that she knew contained falsely inflated income and taxes she allegedly paid to the IRS during the 2008 income tax year.
Taste and Yates pleaded guilty before U.S. District Court Judge Timothy S. Black and they both remain on bond pending sentencing which has been scheduled for December 5, 2013.
Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office stated, “The object of this refund fraud scheme was to swindle the government and the taxpaying public. In this case IRS Criminal Investigation and our partners at the U.S. Attorney’s Office and the U.S. Department of Veterans Affairs identified, investigated and vigorously prosecuted those who were involved in filing false claims for refunds.”
These cases are being prosecuted by Assistant United States Attorney Brent Tabacchi and investigated by special agents of IRS-Criminal Investigation and the U.S. Department of Veterans Affairs, Office of Inspector General.
Three Missourians Sentenced for Defrauding Consumers Seeking Immigration ServicesRead the Press Release
Three defendants who previously pleaded guilty in connection with an immigration services fraud scheme were sentenced in federal court, the Justice Department announced today. The three defendants formerly worked at Immigration Forms and Publications (IFP), a Sedalia, Mo., company that falsely represented to consumers that IFP was affiliated with the federal government and sales representatives were immigration agents, fees paid to IFP covered government filing fees for immigration documents and that IFP could speed up application processing. All three defendants pleaded guilty to mail and wire fraud charges in August 2012.
U. S. District Judge Brian C. Wimes of the Western District of Missouri sentenced Thomas Laurence, 31, to 130 months in prison; Thomas Strawbridge, 50, to 82 months in prison and Elizabeth Meredith, 25, to a year and a day in prison. In sentencing the defendants, the court found that they caused customers to lose a total of more than $400,000. In addition to prison time, the court ordered the three defendants to pay a total of $613,969 in restitution to victims.
“Immigrants who come to this country and try to play by the rules deserve fair treatment under the law – not to be bilked out of their hard-earned savings by those looking for a quick buck,” said Stuart F. Delery, Assistant Attorney General of the Justice Department’s Civil Division. “We are pleased to have worked with our law enforcement partners to bring to justice the leaders of this fraudulent operation.”
"This company exploited more than a thousand law-abiding immigrants by selling them government forms that anyone can obtain for free," said U.S. Attorney for the Western District of Missouri Tammy Dickinson. "They preyed on legal immigrants who were doing their best to follow the law, and they are being held accountable for their fraud and deceit."
According to court documents, Strawbridge founded and owned IFP, which operated in 2009 and 2010. The IFP representatives falsely represented to consumers that IFP handled excess call volume for U.S. Citizenship and Immigration Services (USCIS). The company also sold immigration forms, which are generally available at no charge from the government, to immigrants using fraudulent means. The representatives falsely told consumers that the company employed paralegals who would help customers correctly fill out the immigration forms, and that forms purchased through IFP would be processed more quickly than if consumers dealt directly with USCIS.
The IFP representatives also falsely told consumers that fees paid to IFP included government processing fees. However, the IFP employees concealed the fact that the government routinely charged processing fees that IFP customers would be required to pay in addition to IFP charges. They also concealed that a high percentage of IFP customers had complained to the company and requested refunds when they discovered that payments to IFP did not include government processing fees and that IFP sales representatives had no particular expertise in immigration matters.
The case was prosecuted by Trial Attorneys Alan Phelps and Adrienne Fowler of the Justice Department’s Consumer Protection Branch, Civil Division and Tony Gonzalez, Assistant U.S. Attorney for the Western District of Missouri. It was investigated by the FBI, the U.S. Postal Inspection Service, the Missouri Secretary of State’s Corporate Division and Securities Division and the Missouri Attorney General’s Office. The Federal Trade Commission also provided important assistance.
For information on avoiding immigration services fraud, go to the U.S. Citizenship and Immigration Services website: www.uscis.gov/avoidscams.
Three Drug Trafficking Conspirators Each Sentenced to over 10 Years in PrisonRead the Press Release
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced three conspirators from Maryland today, who were convicted by a federal jury following a four week trial, for their participation in a conspiracy to traffic cocaine and heroin in Montgomery County, Maryland and several states.
Judge Titus sentenced Omar Steele, age 43, of Upper Marlboro, Maryland, to 16 years in prison, followed by five years of supervised release, for conspiring to distribute more than a kilogram of heroin and five kilograms of cocaine; managing a place used to distribute and store drugs; interstate travel for narcotics activity; possession with intent to distribute heroin; and three counts of using a telephone to further a drug trafficking offense.
Judge Titus sentenced Noe Farid Medrano, age 42, of Adamstown, Maryland, to 10 years in prison, followed by five years of supervised release, for conspiring to distribute more than five kilograms of cocaine; possession with intent to distribute cocaine; possession with intent to distribute marijuana; and three counts of using a telephone to further a drug trafficking offense.
Judge Titus sentenced Francisco Barahona, age 35, of Gaithersburg, Maryland, to 11 years in prison, followed by five years of supervised release, for conspiring to distribute more than a kilogram of heroin and five kilograms of cocaine; managing a place used to distribute and store drugs; interstate travel for narcotics activity; possession with intent to distribute heroin; using a telephone to further of a drug trafficking offense; and possession with intent to distribute cocaine and a kilogram or more of heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Chief J. Thomas Manger of the Montgomery County Police Department; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to trial evidence, Steele obtained multiple kilograms of cocaine and heroin from his source of supply; received or brokered the distribution of 10 to 15 kilograms of heroin, and 40 to 50 kilograms of cocaine; and provided a place to use to distribute and cut the drugs.
From 2010 until his arrest on January 25, 2012, Medrano distributed approximately 3.5 kilograms of cocaine. Witnesses testified to delivering cocaine to Medrano in increments ranging from a half ounce to 18 ounces. Early on in the conspiracy, Medrano made trips to pick up the cocaine and bring it to Montgomery County, Maryland.
Starting in approximately 2010, Barahona helped transport kilograms of cocaine to Connecticut and Pennsylvania, and transported cocaine from Houston and Atlanta back to Maryland.
Barahona’s house was used by members of the conspiracy to cut and repackage kilograms of cocaine and heroin.Some of the kilograms of drugs that arrived in Montgomery County were cut, and all of the drugs were repackaged and sold in the Washington, D.C. metropolitan area, Pennsylvania, Connecticut, Virginia and New York. The investigation ended on January 25, 2012 when agents learned that co-conspirators had traveled to Atlanta to pick up a drug. When the conspirators arrived back in Maryland at Barahona’s residence, two co-conspirators unloaded some of the kilograms into Barahona’s home. Agents executed search and arrest warrants and seized four kilograms of cocaine and two kilograms of heroin from the basement. A fifth kilogram of cocaine and a handgun were recovered from a hidden compartment in a truck used to transport the drugs from Atlanta to Maryland.
United States Attorney Rod J. Rosenstein commended the DEA, Montgomery County Police Department and IRS - Criminal Investigation for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Deborah A. Johnston and Mara Z. Greenberg, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Three Defendants Sentenced for Roles in Large Scale Drug Conspiracy That Operated in the Wichita Falls AreaRead the Press Release
One Defendant Sentenced to 480 Months in Federal Prison
WICHITA FALLS, Texas —Three Wichita Falls, Texas area residents, who pleaded guilty earlier this year to their roles in a large scale methamphetamine distribution conspiracy, were sentenced yesterday morning in federal court in Wichita Falls, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Anthony Rueben Johnston, 28, was sentenced by U.S. District Judge Reed C. O’Connor to 480 months (40 years) in federal prison. Judge O’Connor sentenced Rachel Dawn Billen, 20, and Christina Gail Thompson, 32, to 36 months and 42 months, respectively. Each of the defendants pleaded guilty earlier this year to one count of conspiracy to possess with intent to distribute methamphetamine. All are in custody.
Four other defendants charged in the case, Louis Griego, Jr., Janis Hernandez, James Allan Holley and Darren Scott Murphy, Jr., also pleaded guilty; their sentencing dates are scheduled during the next few months.
According to documents filed in the case, between October 25, 2012, and February 21, 2013, Johnston possessed and distributed methamphetamine that he received from his supplier, co-defendant Murphy. On October 25, 2012, officers with the Wichita Falls Police Department executed a state search warrant at Johnston’s residence. On February 15, 2013, investigators with the Wichita County District Attorney’s Office executed a second state search warrant at Johnston’s home. During those searches notes identifying customers and amounts owed, small plastic bags, a digital scale, firearms and methamphetamine were located. Johnston also admitted that during conversations he had with co-defendant Griego on February 18, 19 and 20, 2013, he told Griego that law enforcement had not found methamphetamine that was hidden inside a wall heater in his residence. He instructed Griego to get the methamphetamine and sell it. Law enforcement, however, seized the methamphetamine before Griego was able to distribute it.
Billen, who lived with Johnston, admitted that co-defendant Johnston supplied the methamphetamine she distributed. She also admitted that when customers wanted to obtain methamphetamine from Johnston, they contacted her and she, in turn, contacted Johnston. Billen also admitted that she told law enforcement officers that the firearm they seized from Johnston’s residence on October 25, 2012 was hers, when, in fact, it was not and told law enforcement it was to assist Johnston in avoiding prosecution for possessing it.
Thompson, who lived with co-defendant Holley, admitted that on multiple occasions between September 2012 and November 20, 2012, she sold methamphetamine that was supplied to her by co-defendant Murphy, to customers in the Electra, Texas and Wichita Falls areas. Thompson also admitted that on November 16, 2012, she and Holly obtained three ounces of methamphetamine from Murphy at co-defendant Hernandez’s residence in Burkburnett, Texas. Later that day, however, a Wichita Falls County Sheriff’s deputy executed a traffic stop on a vehicle that Holley was driving and in which Thompson was riding. After the vehicle stopped, a deputy observed Thompson exit the vehicle, walk away and drop something, which was later determined to be a small plastic bag containing smaller bags of methamphetamine. On November 20, 2012, law enforcement executed a state search warrant at the residence that Thompson and Holley shared in Electra and among other things, recovered notes identifying several methamphetamine customers and money owed to Thompson and Holley.
The Texas Department of Public Safety, the Wichita Falls Police Department, the Wichita County District Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Assistant U.S. Attorney Mary F. Walters is in charge of the prosecution.
Stanberry Man Sentenced to 70 Years for Producing Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Stanberry, Mo., man who produced child pornography and possessed more than a thousand images of child pornography was sentenced in federal court today.
Jeffrey Dale Wiederholt, 35, of Stanberry, was sentenced by U.S. District Judge Gary A. Fenner to 70 years in federal prison without parole.
On Oct. 16, 2012, Wiederholt pleaded guilty to one count of attempting to produce child pornography, one count of transporting child pornography and one count of receiving child pornography.
According to court documents, Wiederholt sexually abused a child under the age of 12 on numerous occasions over the course of approximately seven months while he was producing child pornography. Wiederholt’s exploitation was characterized in court documents as unusually vicious. His forcible abuse of the child victim included his use of duct tape (to cover her mouth during these assaults) and coercion involving threats of murder. He then bragged of his sexual abuse to those individuals with whom he actively traded child pornography.
In August 2010, federal agents learned that Wiederholt was actively trading child pornography with a number of individuals. Wiederholt was caught trading child pornography with another person who was the target of an investigation conducted by the Air Force Office of Special Investigation.
Upon a review of Wiederholt’s email account and personal cell phone, as well as his postings on an image-hosting Web site that caters to traders of child pornography, it was apparent that he had produced images of child pornography. Multiple emails, message board postings, and Wiederholt’s own confession confirmed that Wiederholt used a minor to produce child pornography on Dec. 29, 2010. Wiederholt saved an image of the child victim on his personal cell phone. Wiederholt communicated to multiple individuals, as well as in his confession, that he was sexually abusing this minor. Wiederholt subsequently distributed this image and others via email and on an image-hosting service.
A forensic examination of Wiederholt’s laptop computer demonstrated that he was in possession of at least 1,238 images and 33 video files of child pornography. Wiederholt’s email account demonstrated that he had distributed and received dozens of emails containing numerous images and videos of child pornography. Some of these images depicted acts of a sadistic and masochistic nature.
Court documents cite Wiederholt’s extensive criminal history, including a history of sex-related offenses and inappropriate contact with minor females. Wiederholt has multiple convictions for repeated contact with a then-15-year-old minor. Even after being confronted by law enforcement, court documents state, Wiederholt continued to contact this 15-year-old minor and express his “love” for her.
This case was prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Department of Justice – Child Exploitation and Obscenity Section.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Seventeen Arrested in Long-Term Methamphetamine InvestigationRead the Press Release
The United States Attorney, Deborah R. Gilg, announces the arrests of the following in Ogallala, Nebraska, Brule, Nebraska and surrounding cities in western Nebraska and eastern Colorado:
Luis Enrique Miramontes-Arteaga
Andres Barruza
J. Merced Rodriguez Barajas
Ruben Avila Barraza
Jesus German-Diaz
Johnny Martinez
Anisha Martinez
Anthony Weinrich
Mark Piper
Jacklynn Walker
Darren Relerford
Chris Hackbart
Bobby Griffin
Kirsten Griffin
Sharon Kay Tyler
Minnie Beth Donner
Linda Breese
All are charged with Conspiracy to distribute, and possess with the intent to distribute, methamphetamine. This investigation is the result of a long-term investigation by the FBI, Nebraska State Patrol, Ogallala Police Department, North Platte Police Department, CODE Task Force, WING Task Force, Keith County Sheriff’s Office, Keith County Attorney’s Office, Cheyenne County Attorney’s Office, Homeland Security Investigations, Deuel County Sheriff’s Office, Phillips County Colorado Sheriff’s Office, Holyoke Colorado Police Department, Eastern Colorado Plains Drug Task Force and the United States Attorney’s Office. Law enforcement seized over three pounds of methamphetamine and $8,000 in U.S. Currency in connection with this investigation.Seven Indicted for Fraudulent BP Oil Spill ClaimsRead the Press Release
PENSACOLA, FLORIDA – Pamela C. Marsh, United States Attorney for the Northern District of Florida, announced today that Charles C. Martin, 40, and Joseph B. Doyon, 43, of Pace, Florida, and Marquis R. Seals, 34, and Bernard Cook, 39, of Pensacola, Florida, have appeared in federal court on an indictment for mail fraud and false claims related to the BP oil spill.
Martin, Doyon, Seals, Cook, and Johnny R. Smith, 29, of Pensacola, were indicted by the federal grand jury sitting in Pensacola and charged with mail fraud for submitting fraudulent claims to the Gulf Coast Claims Facility (“GCCF”) for lost income due to the 2010 BP oil spill. According to the indictment, all five falsely inflated their reported income as employees of Hooters of Pensacola Beach in their GCCF claims, submitting fraudulent documentation authored and provided by either Martin or Seals. Additionally, the indictment charges Martin and Tremayne C. Jamison, 42, of Atlanta, Georgia, with filing a false claim with the National Pollution Funds Center of the United States Coast Guard alleging that Jamison lost money when a contract between his company and Hooters of Pensacola Beach was cancelled due to the oil spill, when actually no such contract existed. Trial is set for October 7, 2013, before Senior U.S. District Court Judge Lacey Collier.
U.S. Attorney Marsh also announced that Sean D. Croft, 31, of Pensacola, appeared in federal court yesterday on a separate indictment charging him with mail fraud for submitting a false claim to GCCF. According to that indictment, Croft falsely alleged he was let go from his job at Hooters of Pensacola Beach due to the oil spill because he actually worked at the Hooters restaurant located at Bayou Boulevard and Ninth Avenue in Pensacola, not the restaurant located on the beach, and did not lose his job because of the oil spill. Croft’s trial is set for October 21, 2013, before Senior U.S. District Court Judge Roger Vinson.
These charges result from an investigation by the United States Secret Service. The cases are being prosecuted by Assistant U.S. Attorney Alicia Kim.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial in a court of law.
Rochester Man Pleads Guilty to TheftRead the Press Release
ROCHESTER, N.Y. – U.S. Attorney William J. Hochul, Jr. announced that Jeremy Lieberman, 34, of Rochester, N.Y., pleaded guilty before U.S. District Court Judge Charles J. Siragusa to theft while working as a Postal Employee. The charge carries a maximum penalty of 10 years in prison, a $250,000 fine, or both.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Lieberman stole diamonds and other valuables while he was employed by the United States Postal Service as a mail handler at the Rochester Logistics and Distribution Center. Between January 2013 and May 2013, the defendant Lieberman abused his position to steal approximately $128,000 worth of diamonds, coins, gold, jewelry and other items.
The plea is the culmination of an investigation on the part of Special Agents of the United States Postal Service, Office of Inspector General, under the direction of Special Agent in Charge Robert Lapina.
Sentencing is scheduled for December 4, 2013 at 3:30 p.m. before Judge Siragusa.Pennsylvania Man Pleads Guilty in Massachusetts to Hacking into Multiple Computer NetworksRead the Press Release
A Pennsylvania man pleaded guilty today to charges stemming from his participation in a scheme to hack into computer networks and sell access to those networks.
The guilty plea was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Carmen M. Ortiz of the District of Massachusetts.
Andrew James Miller, 23, of Devon, Penn., pleaded guilty before U.S. District Judge Mark Wolf in the District of Massachusetts to one count of conspiracy and two counts of computer intrusion.
According to court documents, from 2008 to 2011, Miller remotely hacked into a variety of computers located in Massachusetts and elsewhere, and, in some instances, surreptitiously installed “backdoors” into those computers. These “backdoors” were designed to provide future administrator-level, or “root,” access to the compromised computers. According to court documents, Miller obtained log-in credentials to the compromised computers. He and his co-conspirators then sold access to these backdoors, as well as other log-in credentials. The access sold by Miller and his co-conspirators allowed unauthorized people to access various commercial, education and government computer networks.
Judge Wolf scheduled sentencing for Nov. 19, 2013. The maximum penalty for the conspiracy count is five years in prison. One of the computer intrusion counts carries a maximum penalty of five years in prison and the other, involving intentional damage to a protected computer, carries a maximum penalty of 10 years in prison.
The case was investigated by the FBI. It is being prosecuted by Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Adam Bookbinder of the U.S. Attorney’s Office for the District of Massachusetts.
Pennsylvania Man Pleads Guilty to Hacking into Multiple Computer NetworksRead the Press Release
BOSTON – A Pennsylvania man pleaded guilty today to charges stemming from his participation in a scheme to hack into computer networks and sell access to those networks.
Andrew James Miller, 23, of Devon, Penn., pleaded guilty before U.S. District Judge Mark Wolf to one count of conspiracy and two counts of computer intrusion.
From 2008 to 2011, Miller remotely hacked into a variety of computers located in Massachusetts and elsewhere, and, in some instances, surreptitiously installed “backdoors” into those computers. These “backdoors” were designed to provide future administrator-level, or “root,” access to the compromised computers. Miller obtained log-in credentials to the compromised computers. He and his co-conspirators then sold access to these backdoors, as well as other log-in credentials. The access sold by Miller and his co-conspirators allowed unauthorized people to access various commercial, education and government computer networks.
Sentencing is scheduled for November 19 at 3 p.m. The maximum penalty for conspiracy is five years in prison. One of the computer intrusion counts carries a maximum penalty of five years in prison and the other, involving intentional damage to a private computer, carries a maximum penalty of 10 years in prison.
United States Attorney Carmen M. Ortiz, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Division, made the announcement today.
The case is being prosecuted by Assistant U.S. Attorney Adam Bookbinder of Ortiz’s Cybercrimes Unit and Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section.
Owners of Chinese Restaurants in Rio Rancho and Santa Fe Charged with Harboring Illegal AliensRead the Press Release
ALBUQUERQUE – Wen Ping Chen, 28, and his brother Wen Qiu Chen, 30, made their initial appearances in federal court this morning on criminal complaints charging them with conspiracy and harboring illegal aliens. Ping Chen and Qiu Chen, both naturalized U.S. Citizens born in China, remain in custody pending detention hearings which are scheduled for tomorrow.
The brothers were arrested yesterday afternoon by Homeland Security Investigations (HSI) agents following an investigation into allegations that they were harboring illegal aliens who worked at their restaurants, the Double Dragon Restaurant in Rio Rancho, N.M., which is owned and operated by Ping Chen, and the Double Dragon II, in Santa Fe, N.M., which is owned and operated by Qiu Chen.
According to court filings, in Oct. 2012, HSI agents executed search warrants at the Double Dragon and a Rio Rancho residence owned by Ping Chen and Qiu Chen. The agents allegedly found three illegal aliens at the Double Dragon and another illegal alien in the residence, which served as the residence for all four aliens. All four illegal aliens allegedly worked for Ping Chen at the Double Dragon without authorization.
In May 2013, HSI agents executed search warrants at the Double Dragon II and a Santa Fe residence owned by Qiu Chen, and allegedly found five illegal aliens at the Double Dragon II. The agents allegedly learned that all of the Double Dragon II employees resided in the Santa Fe residence owned by Qiu Chen. The five illegal aliens allegedly worked for Qiu Chen at the Double Dragon II without authorization.
If convicted on the conspiracy charge, Ping Chen and Qiu Chen each face a maximum penalty of five years in prison. If convicted on the harboring charge, each man faces a maximum of ten years in prison. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt in a court of law.
These cases were investigated by the Albuquerque office of HSI and are being prosecuted by Assistant U.S. Attorney Norman Cairns.Operator of Venetian Resort in Las Vegas Agrees to Return over $47 Million After Receiving Money Under Suspicious CircumstancesRead the Press Release
Las Vegas Sands Corp. to Avoid Criminal Prosecution after Cooperating and Agreeing to Continue to Strengthen Internal Compliance Programs
LOS ANGELES – The Las Vegas Sands Corp., which operates the Venetian-Palazzo hotel complex in Las Vegas, has agreed to return $47,400,300 to conclude an investigation into the casino’s failure to alert authorities that a high-stakes gambler, who was later linked to international drug trafficking, made numerous large and suspicious deposits with the casino.
Pursuant to an agreement signed by officials with Las Vegas Sands last night, the company will return the money to the United States within 10 days. In exchange, federal prosecutors have agreed not to prosecute the casino for failing to file Suspicious Activity Reports for casinos (SARCs), which are required when a customer is involved in a transaction the casino knows, suspects, or has reason to suspect “had no business or apparent lawful purpose or was not the sort in which the particular customer would normally be expected to engage, and the casino knew of no reasonable explanation for the transaction after examining the available facts.” The Bank Secrecy Act requires casinos with annual revenue of at least $1 million to file SARCs, which are then analyzed by appropriate government agencies to investigate possible violations of the law.
The United States Attorney’s Office agreed to conclude a criminal investigation and not seek an indictment after Las Vegas Sands agreed to return the money and after prosecutors determined that the casino completely cooperated with the investigation – which included making full disclosures related to its conduct and failure to comply with federal law, as well as conducting a thorough internal investigation – and that the casino has made extensive efforts to enhance its internal compliance program.
“What happens in Vegas no longer stays in Vegas,” said United States Attorney André Birotte Jr. “For the first time, a casino has faced the very real possibility of a federal criminal case for failing to properly report suspicious funds received from a gambler. This is also the first time a casino has agreed to return those funds to the government. All companies, especially casinos, are now on notice that America’s anti-money laundering laws apply to all people and every corporation, even if that company risks losing its most profitable customer.”
The money being paid the United States represents money sent to the Venetian casino by or on behalf of Zhenli Ye Gon, who at the end of 2006 or early 2007 was “the largest all-cash, up-front gambler the Venetian-Palazzo had ever had to that point,” according to the non-prosecution agreement. In March 2007, Ye Gon’s residence in Mexico City was searched by law enforcement authorities, who seized approximately $207 million in United States currency from the residence in what remains the largest-ever seizure of currency by law enforcement.
Ye Gon was indicted by federal officials in the District of Columbia on narcotics charges, but that case was dismissed in 2009. Ye Gon is currently pending extradition to Mexico, which has charged him with drug trafficking offenses.
According to the agreement, prosecutors believe that in October 2006, prior to Ye Gon being publicly linked to drug trafficking as a result of the search of his residence, officials at the Venetian-Palazzo, should have identified as “suspicious” Ye Gon’s financial transactions, which included the wire transfer of approximately $45 million and depositing of approximately $13 million in cashier’s checks between February 2005 and continuing through March 2007. Casino officials should have filed one or more SARCs against Ye Gon in addition to a SARC it filed in April 2007, prosecutors contend.
For its part, the Las Vegas Sands, while unaware of Ye Gon’s alleged criminal activities prior to March 2007, acknowledges that “in hindsight...the Venetian-Palazzo failed to fully appreciate the suspicious nature of the information or lack thereof pertaining to Ye Gon in the context of the Venetian’s evaluation of whether to file additional SARCs against him earlier and in retrospect should have filed SARCs earlier, and should have filed a more complete SARC when it did file one.”
During his patronage at the Venetian, Ye Gon wire transferred money to the Las Vegas Sands Corp. and subsidiary companies from two different banks and seven different Mexican money exchange houses known as casas de cambios. The wire transfer originators included several companies and individuals the Las Vegas Sands Corp. could not link to Ye Gon. Ye Gon also transferred some funds from Mexican casas de cambios to a Las Vegas Sands Corp. subsidiary in Hong Kong for transfer to Las Vegas. In many instances, Ye Gon’s wire transfers lacked sufficient information to identify him as the beneficiary. The Las Vegas Sands also allowed Ye Gon to transfer funds several times to an account that did not identify its association with the Venetian, specifically an aviation account used to pay pilots operating the company’s aircraft. During its investigation, the government developed evidence that “when casino personnel asked Ye Gon to wire the money in larger lump sums, as opposed to breaking it up incrementally, and use consistent listed beneficiaries, Ye Gon stated that he preferred to wire the money incrementally because he did not want the government to know about these transfers.”
Anthony Williams, the Special Agent in Charge of the Drug Enforcement Administration in Los Angeles, stated: “Millions of dollars earned from illegal drug trafficking were transferred through casino accounts in a complex scheme designed to thwart law enforcement detection. The DEA will continue to work with our partners to pursue all means to deny criminals the profits they work so hard to conceal.”
Federal prosecutors also believe that compliance personnel at the Venetian-Palazzo: failed to adequately investigate Ye Gon, his respective companies, or his source of funds;
failed to conduct an appropriate deposit-pattern analysis of incoming front money deposits and marker payments by Ye Gon;
failed to understand and appreciate the layered manner in which Ye Gon wire transferred his funds;
failed to be appropriately suspicious of Ye Gon’s use of multiple third-party fund sources and multiple casas de cambios;
failed to be appropriately suspicious of the Venetian’s inability to link Ye Gon to nearly all of the companies he professed to own and/or control which originated wire transfers to the Venetian;
failed to be appropriately suspicious of Ye Gon making multiple wire transfers on the same day or consecutive days;
failed to be appropriately suspicious of Ye Gon originating payments in Mexico and routing them through the Venetian’s Hong Kong subsidiaries for final credit at the Venetian casino in Las Vegas; and
failed to conduct appropriate diligence into the reason for requests to use a non-casino-name account.
Release No. 13-110
Omaha Man Sentenced for Bank RobberyRead the Press Release
United States Attorney Deborah R. Gilg announced that Jesus Acosta Robles, 49, of Omaha, Nebraska, was sentenced in federal court in Omaha for Bank Robbery. The Honorable Joseph F. Bataillon sentenced Robles to 63 months in prison. There is no parole in the federal system. After his release from prison, Robles will begin a three year term of supervised release.
On August 13, 2012, Robles robbed the Wells Fargo Bank, located at 4650 South 24th Street, Omaha, Nebraska. During the robbery, Robles took from Wells Fargo Bank an amount totaling approximately $297.00. Omaha Police responded to the robbery, at which time responding officers located Robles hiding in bushes approximately 1-2 blocks from the Wells Fargo Bank.
This case was investigated by the Omaha Police Department.
Oklahoma Man Pleads Guilty to Firearm OffenseRead the Press Release
On August 26, 2013, Jervares D. Davis, a 24-year old Norman, Oklahoma, man pled guilty in federal district court, in East St. Louis, to unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Davis is scheduled for sentencing on December 4, 2013, at which time he faces a maximum potential sentence of 10 years in prison and a fine of up to $250,000, not more than 3 years of supervised release after his prison term, and a mandatory special assessment of $100. Davis also agreed to forfeit the firearm.
Court proceedings revealed that on or about May 10, 2013, a law enforcement officer in Collinsville, Illinois, pulled over a vehicle, in which Davis was a passenger, for a traffic violation. During the stop, the officer noticed an unusually large amount of air fresheners in the vehicle. He observed that Davis and the driver of the vehicle were acting particularly nervous while being questioned, and both gave conflicting stories about their destination. Shortly thereafter, a Metro East Drug Task Force officer, traveling with a drug dog, stopped on the scene after passing by and seeing the flashing lights. Due to the number of air fresheners, overly nervous behavior and inconsistent stories of the individuals inside the car, the officers decided to let the dog do a sniff. The dog alerted the officers to the presence of narcotics in the car. The officers searched the vehicle and recovered cannabis, loose ammunition and a handgun hidden underneath the hood of the car. Davis admitted to purchasing the firearm in Oklahoma. A check of the firearm revealed that it was reported stolen out of Norman, Oklahoma. Davis has a previous felony conviction in Oklahoma.
This case was investigated by the Metro East Task Force and the Collinsville Police Department, and assigned to Special Assistant United States Attorney Neal C. Hong for prosecution.
Norristown Man Sentenced to 22 Years for Robbing Tavern and Its EmployeeRead the Press Release
PHILADELPHIA - Marc Viney, 35, of Norristown, was sentenced today to 264 months in prison for robbing an employee of the Roo House Tavern in Norristown and then robbing the tavern. Viney was convicted on January 31, 2013, following a four day trial, of robbery, criminal conspiracy to commit robbery, and possession of a firearm in furtherance of a violent crime.
On July 10, 2011, Viney followed home an employee of the Roo House Tavern, after the employee closed the bar for the night. At the victim's apartment, Viney confronted the victim, bound, gagged, blindfolded, and assaulted him, while holding him at gunpoint. Viney then stole money and a laptop from the victim’s home. Viney then forced the victim to go back to Roo House Tavern, where Viney stole several thousand dollars in proceeds from the Tavern.
In addition to the prison term, seven years of which is mandatory, U.S. District Court Judge Mary McLaughlin ordered restitution to the victims in the amount of $3,537 and five years of supervised release.
The case was investigated by the FBI, the Montgomery County Detective Bureau and members of the Norristown Police Department. It was prosecuted by Special Assistant United States Attorney Rebecca W. Strubel.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Norfolk Man Sentenced to 188 Months in Prison on Cocaine ChargeRead the Press Release
NORFOLK, Va. – Keith Jermaine Everett, 34, of Norfolk, Virginia, was sentenced today to 188 months in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia and Royce E. Curtin, Special Agent in Charge, Federal Bureau of Investigation Norfolk Office, made the announcement after sentencing by United States District Judge Mark S. Davis.
Everett waived indictment and pleaded guilty to a criminal informationon May 29, 2013. The criminal information charged him with conspiracy to distribute and possess with intent to distribute 500 grams or more cocaine. According to court documents, Everett distributed cocaine and marijuana on a regular basis in Norfolk and surrounding cities. On December 18, 2012, a controlled purchase of cocaine was conducted by law enforcement from Everett at a location on North Military Highway in Norfolk.
This case was investigated by the Norfolk Field office of the Federal Bureau of Investigation and the Norfolk Police Department. Assistant United States Attorney Sherrie S. Capotosto prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Nigerian Court Orders Alleged AQAP Operative Extradited to the Us W/I 15 Days to Face Indictment Charging Terrorism OffensesRead the Press Release
Nigerian Court Orders Alleged AQAP Operative Extradited To The Us W/I 15 Days To Face Indictment Charging Terrorism Offenses
Niagara Falls Man Sentenced on Gun and Witness Tampering ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Rodriguez Brown, 37, of Niagara Falls, N.Y., who was convicted of being a felon in possession of a firearm and witness tampering while on court supervision, was sentenced to 33 months in prison by U.S. District Chief Judge William M. Skretny.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that between 2009 and 2010, Brown sold crack cocaine in the City of Niagara Falls. In May 2010, Niagara Falls Police officers executed a search at the defendant’s residence on
The sentencing is the culmination of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Frank Christiano, the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto, and the Buffalo Police Department, under the direction of Commissioner Daniel Derneda.
77th Street and recovered a loaded shotgun and ammunition. Brown was indicted on charges of being a felon in possession of a firearm and related drug offenses in August of 2010. In April 2012, with federal charges pending, Brown attempted to bribe a witness in the case and was charged additionally with witness tampering.Newark Man Charged with Producing Child Pornography for Recording His Sexual Abuse of GirlRead the Press Release
NEWARK, N.J. – A Newark man is expected to make his initial court appearance today on charges of sexual exploitation of a prepubescent girl after allegedly abusing her repeatedly and filming the abuse, U.S. Attorney Paul J. Fishman announced.
Pedro Rios, 57, is charged by complaint with two counts of sexual exploitation of a child. He is currently in state custody on related charges and is scheduled to appear in Newark federal court today before U.S. Magistrate Judge Steven C. Mannion.
According to the complaint:
Law enforcement officers executed a search warrant at Rios’s home in Newark on Feb. 5, 2013. A forensic review of the computer equipment seized revealed several video files of child pornography which appear to be self-produced and allegedly depict Rios on camera engaging in sexually explicit conduct with a prepubescent female in the rear of a cab of a tractor trailer truck.
Law enforcement officers identified and interviewed a female, who allegedly said Rios would periodically drive her to his tractor trailer truck in Union County, N.J., where he would undress her and have sexual contact and sexual relations with her and record the encounters. Rios allegedly threatened to hurt the victim’s family if she told anyone.
Each charge of sexual exploitation of a child carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI Newark Division’s Child Exploitation Task Force, under the direction of Special Agent in Charge Aaron T. Ford in Newark, the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray, and the N.J. Regional Computer Forensics Laboratory with the investigation leading to these charges.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
13-346
Defense counsel: Brian J. Neary Esq., Hackensack, N.J.
Rios Complaint
Mobile Doctors’ Chicago CEO and Doctor Arrested on Federal Health Care Fraud Charges; Offices Searched in Three CitiesRead the Press Release
CHICAGO — The chief executive officer of Chicago-based Mobile Doctors, which manages physicians who make house calls in six states, and one of its physicians in Chicago were arrested today on federal health care fraud charges. At the same time, federal agents executed search warrants at Mobile Doctors’ offices in Chicago, Detroit, and Indianapolis, as well as warrants to seize up to $2.568 million in alleged fraud proceeds from various bank accounts. The charges allege a scheme to fraudulently increase (also known as “upcoding”) Medicare bills for in-home patient visits that Mobile Doctors falsely claimed were more complicated and longer than they actually were. The charges also allege that Mobile Doctors’ physicians falsely certified that patients were confined to their homes, enabling home health care agencies to claim fees for additional services for patients who were not actually qualified to receive them.
Agents from the FBI, the U.S. Department of Health and Human Services Office of Inspector General, and other law enforcement agencies executed the arrest, search, and seizure warrants in connection with the charges and also a broader ongoing investigation that includes allegedly illegal billing practices for medically unnecessary tests and services not performed by a physician.
Arrested were DIKE AJIRI, 42, of Wilmette, CEO of Mobile Doctors, which he has effectively owned since 1996, and BANIO KOROMA, 63, of Tinley Park, a physician who has worked for Mobile Doctors since approximately 2007. Mobile Doctors, located at 3319 N. Elston Ave., in Chicago, arranges patient home visits and contracts with doctors who perform the visits. The physicians assign their rights to bill and collect payment to Mobile Doctors, in return for being paid directly by the company. Mobile Doctors’ website claims that its associated physicians have made more than 500,000 house calls since its inception. In addition to Chicago, the company has branches in Detroit and Flint, Mich., San Antonio and Austin, Tex., Indianapolis, Kansas City, Phoenix, and St. Louis.
Ajiri was charged with health care fraud and Koroma was charged with making false statements relating to health care benefits in a criminal complaint that was filed yesterday and unsealed today after the arrests. Both were scheduled to appear at 3 p.m. today before U.S. Magistrate Judge Mary Rowland in U.S. District Court.
The arrests and charges were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois; Robert J. Shields, Jr., Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Lamont Pugh III, Special Agent-in- Charge of the Chicago Regional Office of the HHS-OIG. The Railroad Retirement Board Office of Inspector General is also participating in the investigation.
According to a 75-page affidavit in support of the arrest, search and seizure warrants, agents have interviewed several current and more than 25 former employees of Mobile Doctors, including some who reported allegedly fraudulent billing practices to Medicare before they were contacted by agents. Investigators have also reviewed emails and documents, claims data, patient files, and have conducted interviews with patients of Mobile Doctors and their primarycare physicians, whose statements contradict Mobile Doctors’ billing and patient records.
Mobile Doctors physicians do not perform tests such as echocardiograms, but do order such tests, which are done on Mobile Doctors’ patients by employees of In Home Diagnostics, doing business as Ultrasound2You. According to Medicare records, Ajiri is a minority partner in In Home Diagnostics, which is located in the same building as Mobile Doctors, and Mobile Doctors bills the echocardiograms so that they appear to have been done by Mobile Doctors’ physicians.
The complaint affidavit states that Ajiri signed a personal financial statement on Dec. 31, 2012, stating that he received $1.5 million in annual partnership income from a corporate entity, Mobile Doctors LLC, which has a complex ownership structure involving Ajiri and over time, one or both of his parents. Between 2008 and January 2013, bank records show that approximately $4.365 million was transferred from Mobile Doctors to an account in the name of Ajiri and his wife.
Upcoding patient visits
According to interviews with former and current Mobile Doctors physicians, branch managers, clinical coordinators, employees and patients, a typical visit that a Mobile Doctors physician has with an established patient lasts 10 to 30 minutes and is routine in nature. In contrast to those interviews, claims data shows that from 2006 through February 2013, approximately 99 percent of all established-patient visits by Mobile Doctors physicians were billed to Medicare using either of the two highest codes indicating the visits involved medical decision-making of moderate to high complexity, detailed or comprehensive interval histories or medical examinations, and/or visits that typically last at least 40 minutes.
In 2009 in Chicago, the local Medicare fee for a visit using the second-highest home visit code was approximately $122.82, while the fee for the highest code was approximately $171.25. According to a review of claims data for Railroad Retirement Board patients, every single established-patient visit Mobile Doctors billed to Medicare between January 2007 and June 2008 used the highest fee code. Between January 2007 and November 2012, approximately 93 percent of such visits were billed using the highest fee code.
The former manager of Mobile Doctors’ Chicago branch until she was terminated in 2008 told agents that Ajiri told her that the second-highest fee code was the default code for a patient visit so that it would be worth the gas and time spent. The manager said Ajiri told physicians, “I don’t pay for ones or twos,” referring to the two lower of the four applicable fee codes. At the end of one day, she said she saw Ajiri in his office “automatically” altering the billing codes and marking visits at the highest fee level on patient records submitted by physicians and assistants who accompanied them on home visits. A physician told agents that in late 2007, Ajiri did not respond to his concerns about Mobile Doctors’ billing practices and instead told the doctor that he could earn more money if he would order more tests such as electrocardiograms, according to the affidavit.
The complaint alleges that the vast majority of payments made on established-patient visit claims using the highest fee code were the result of fraudulent upcoding. From 2006 through 2012, Mobile Doctors received approximately $21.4 million in payments on claims using the second-highest code, and approximately $12.6 million in Medicare payments on claims using the highest fee code.
Falsely certifying patients as confined to their homes
The charges further allege that Mobile Doctors physicians, including Koroma, falsely certified patients as confined to their homes and requiring home health services when they were not home-bound and did not require such care. By referring patients to home health agencies that did not warrant Medicare payments, Mobile Doctors received more referrals from those agencies for services provided by its physicians. According to Medicare data, from August 2010 through July 2013, more than 200 home health agencies submitted Medicare claims for services allegedly rendered to patients for whom Koroma was identified as the referring physician. These home health agencies have been paid more than $10 million for services listing Koroma as the referring physician.
Between January 2006 and March 2013, Mobile Doctors physicians have certified or recertified for 60-day periods approximately 15,598 patients as confined to their homes and requiring home health services a total of approximately 83,133 times, many of which were allegedly false. Approximately 6,057 of these certifications were attributed since August 2007 to Koroma, with Mobile Doctors billing Medicare for approximately 17,439 patient visits he made during that time, more than any other Mobile Doctors physician.
The health care fraud count against Ajiri carries a maximum penalty of 10 years in prison and a $250,000 fine and restitution is mandatory. The false statements count against Koroma carries a maximum of five years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorney Stephen C. Lee and Catherine Dick, assistant chief in the Fraud Section of the Justice Department’s Criminal Division. The U.S. Attorney’s Offices in Detroit, Indianapolis, and Phoenix also have assisted in the investigation.
The public is reminded that a complaint is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The Medicare Fraud Strike Force began operating in Chicago in February 2011, and consists of agents from the FBI and HHS-OIG, working together with prosecutors from the U.S. Attorney’s Office and the Justice Department’s Fraud Section. The strike force is are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Scores of defendants have been charged locally in health care fraud cases since the strike force began operating in Chicago.
To report health care fraud to learn more about the Health Care Fraud Prevention & Enforcement Action Team (HEAT), go to: StopMedicareFraud.gov.
Complaint
Mexican National Convicted of Illegal Re-entry Despite Fraudulently Obtaining Texas Birth CertificateRead the Press Release
McALLEN, Texas - A federal jury in McAllen has convicted Mexican National Felipe Oviedo-Cerda, aka Felipe Telles-Sanchez or Mario Trevino-Leal, 55, on one count of illegally re-entering the country, United States Attorney Kenneth Magidson announced today. The verdict was returned following a two-day trial and approximately two hours of deliberations.
During trial, the government presented documentary evidence and witness testimony illustrating Oviedo-Cerda’s unlawful entry despite being an aggravated felon. Since his first deportation in 1984, the evidence showed he had relied upon numerous aliases and other false information to avoid detection by law enforcement and immigration authorities.
In 2002 and while in federal custody pending a similar indictment, Oviedo-Cerda fraudulently obtained a delayed birth certificate from the State of Texas reflecting that he was born in Rio Grande City in 1958. The Department of Vital Statistics later flagged this document only to re-issue the birth certificate in 2008 to him after had been released from federal prison, deported and provided additional false documentation. The evidence at trial indicated Oviedo-Cerda had resided in the United States since 2008 by relying upon this birth certificate and other false documents.
At trial, the government also relied upon expert fingerprint testimony to connect Oviedo-Cerda to his long history of aliases and false identities. Other witnesses with personal knowledge of the defendant testified that despite his birth in Zacatecas, Mexico, Oviedo-Cerda used forged, altered and fraudulent documents to obtain the delayed birth certificate under the name Felipe Telles. Based upon this evidence, the Texas Department of Vital Statistics has again flagged this birth certificate.
The defense attempted to convince the jury that the Texas delayed birth certificate proved he was born in Rio Grande City and/or proved the valid birth certificate at least gave him status to be in the country when apprehended. The jury disagreed and found him guilty as charged.
Chief U.S. District Judge Ricardo H. Hinojosa, who presided over the trial, has set sentencing for Nov. 25, 2013, at which time he faces up to 20 years imprisonment. Oviedo-Cerda has been in custody since his arrest Sept. 23, 2011, where he will remain pending sentencing.
This case was investigated by Border Patrol and is being prosecuted by Assistant United States Attorney Grady J. Leupold.
Member of Al-Qaeda in the Arabian Peninsula, Al-Qaeda’s Yemeni Affiliate, Indicted in Brooklyn Federal CourtRead the Press Release
An indictment was unsealed today in federal court in Brooklyn, New York, charging a Nigerian citizen with providing material support to a designated foreign terrorist organization, al-Qaeda in the Arabian Peninsula (“AQAP”), and using high-powered firearms in furtherance of that crime. The United States is currently seeking the extradition of the defendant, Lawal Olaniyi Babafemi, also known as “Abdullah” and “Ayatollah Mustapha,” from Nigeria.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; John Carlin, Acting Assistant Attorney General, National Security Division; and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office. United States Attorney Lynch acknowledged the continued cooperation and assistance of the government of Nigeria in terrorism matters affecting both nations.
According to court documents, between approximately January 2010 and August 2011, the defendant traveled twice from Nigeria to Yemen to meet and train with leaders of AQAP, the Yemen-based branch of al-Qaeda. Babafemi assisted in AQAP’s English-language media operations, which include the publication of the magazine “Inspire.” At the direction of the now-deceased senior AQAP commander Anwar al-Aulaqi, Babafemi was provided by AQAP leadership with the equivalent of almost $9,000 in cash to recruit other English-speakers from Nigeria to join that group. While in Yemen, Babafemi also received weapons training from AQAP.
On February 21, 2013, a grand jury in the Eastern District of New York returned a sealed indictment charging the defendant with one count of conspiracy to provide material support to AQAP, in violation of Title 18, United States Code, Section 2339B; one count of providing and attempting to provide material support to AQAP, in violation of Title 18, United States Code, Section 2339B; one count of unlawful use of machineguns, in violation of Title 18, United States Code, Section 924(c); and one count of conspiracy to unlawfully use machineguns, in violation of Title 18, United States Code, Section 924(o). At the request of the United States, the Nigerian government thereafter commenced extradition proceedings against the defendant in July 2013.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty. The case is assigned to the United States District Judge John Gleeson in the Eastern District of New York.
The government’s case is being prosecuted by Assistant United States Attorneys Zainab Ahmad and Hilary Jager, with assistance from Trial Attorney William M. Narus of the Justice Department’s Counterterrorism Section and Trial Attorney Timothy Hammer of the Justice Department’s Office of International Affairs.
The Defendants
LAWAL OLANIYI BABAFEMI
Age: 33MRI Diagnostic Testing Company, Imagimed LLC, and Its Former Owners <br /> and Chief Radiologist to Pay $3.57 Million to Resolve False Claims Act AllegationsRead the Press Release
New York-based Imagimed LLC, the company’s former owners, William B. Wolf III and Dr. Timothy J. Greenan, and the company’s former chief radiologist, Dr. Steven Winter, will pay $3.57 million to resolve allegations that they submitted to federal healthcare programs false claims for magnetic resonance imaging (MRI) services, the Justice Department announced today. Imagimed owns and operates fifteen MRI facilities, located primarily in New York state, under the name “Open MRI.”
Allegedly, from July 1, 2001, through April 23, 2008, Imagimed, Greenan, Wolf and Winter submitted claims to Medicare, Medicaid and TRICARE for MRI scans performed with a contrast dye without the direct supervision of a qualified physician. Since a potential adverse side effect of contrast dye is anaphylactic shock, federal regulations require that a physician supervise the administration of contrast dye when it is used for an MRI. Also, allegedly, from July 1, 2005, to April 23, 2008, Imagimed, Greenan, Wolf and Winter submitted claims for services referred to Imagimed by physicians with whom Imagimed had improper financial relationships. In exchange for these referrals, Imagimed entered into sham on-call arrangements, provided pre-authorization services without charge and provided various gifts to certain referring physicians, in violation of the Stark Law and the Anti-Kickback Statute.
“The Department of Justice is committed to guarding against abuse of federal healthcare programs,” said Stuart F. Delery, Assistant Attorney General for the Civil Division. “We will help protect patients’ health by ensuring doctors who submit claims to federal healthcare programs follow proper safety precautions at all times.”
U.S. Attorney for the Northern District of New York, Richard S. Hartunian said: “This case is an example of our commitment to using all of the remedies available, including civil actions under the False Claims Act, to ensure patient safety and combat health care fraud. Stripping away the profit motive for circumventing physician supervision requirements has both a remedial and a deterrent effect. The settlement announced today advances our critical interest in both the integrity of our health care system and the safe delivery of medical services.”
The allegations resolved by the settlement were brought in a lawsuit filed under the False Claims Act’s whistleblower provisions, which permit private parties to sue for false claims on behalf of the government and to share in any recovery. The whistleblower in this case, Dr. Patrick Lynch, was a local radiologist and will receive $565,500.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $14.8 billion through False Claims Act cases, with more than $10.8 billion of that amount recovered in cases involving fraud against federal health care programs.
The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York; the Justice Department’s Civil Division, Commercial Litigation Branch and the Department of Health and Human Services’ Office of Inspector General.
The case is United States of America ex rel. Lynch v. Imagimed LLC, et al. (N.D. N.Y.). The claims released by the settlement are allegations only, and there has been no determination of liability.
Local Man Pleads Guilty to Faking Military Service and Conducting Phony Raffle to Aid VeteransRead the Press Release
St. Louis, MO – MATTHEW BUCKINGHAM posted an advertisement on Craigslist, in January 2013, indicating he was involved with a veterans charity identified as "Veterans Aid From All Foreign Wars." The advertisement indicated the charity was designed to "help wounded warriors" and "sell raffle tickets [to aid] war veterans." Through the advertisement, Buckingham solicited individuals to help him promote his charitable events and he provided a contact number.
According to court documents, in his advertisement he stated that he planned to hold a raffle on July 4, 2013. Tickets would cost $5 each and he identified raffle awards of "First Prize: $3,000; Second Prize: $2,000; and Third Prize: $1,000" Through the advertisement, Buckingham solicited individuals to help him promote his charitable events and he provided a contact number. Subsequently, a number of female individuals in the St. Louis area inquired and responded.
Buckingham arranged to meet the individuals who responded at various restaurants and bars in the St. Louis area and introduced himself as "Tyler Matthews." He had individuals complete employment applications or other documents indicating their desire to aid and assist him in his charitable activities. Matthews/Buckingham showed applicants a binder with various documents that purportedly indicated he was affiliated with the military and other documents that appeared to legitimize his charitable activities. Commonly, during conversations with prospective applicants, he claimed to be employed by various agencies or Departments of the United States, including that he served in the military in Afghanistan and Iraq; he was a Marine and had been injured during the war; he worked as a military officer and a sniper; since his return to the United States from overseas, he worked with the Department of Homeland Security and the United States Coast Guard; and, he presently worked in north St. Louis in various positions including "undercover" work infiltrating gangs and otherwise combating crime.He told them they would earn $10 per hour, or half the amount of money they collected from ticket sales. In January and February 2013, he recruited approximately five to ten associates to assist him in selling "raffle" tickets at various bar locations in the St. louis area. At the end of each evening, associates gave Matthews/Buckingham the proceeds from the sales which he used to pay various expenses such as gas for transportation to the various restaurants and bar locations; paraphernalia for the individuals; and "fees" or earnings that he paid the associates who assisted him. No money remained after covering the various costs.
Ultimately, Buckingham did not hold a raffle on July 4, 2013 and he distributed no money from the ticket sales to wounded or homeless soldiers, veterans, or other military personnel. The defendant was not, and has never been, employed by the Department of Defense or the Department of Homeland Security. Similarly, he never served in the United States military or the United States Coast Guard. He never held a position that permitted him the authority to conduct criminal investigations or arrest individuals. As such, his previously detailed representations that he was an agent or employee of a Department or Agency of the United States were false and the defendant knew they were false.
"For more than two hundred years, brave Americans have heeded the call to serve their country. We honor them for their loyal and dedicated service. It disheartens me that this individual falsely represented himself as war veteran and a current member of the Coast Guard and Department of Homeland Security in order to garner support for his raffle scheme. I applaud the efforts of the Coast Guard Investigative Service and the Department of Justice in bringing this case to fruition. I also appreciate KMOV-TV for bringing this case to our attention," said Rear Admiral Kevin Cook, Eighth Coast Guard District Commander.
Buckingham, St. Louis County, pled guilty to one felony count of impersonating a federal agent before United States District Judge Henry Autrey. Sentencing has been set for November 25, 2013.
This charge carries a maximum penalty of three years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Coast Guard Investigative Service and the Missouri Attorney General’s Office. Assistant United States Attorney Matthew Drake is handling the case for the U.S. Attorney’s Office.