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27 August 2013
Alleged El Paso Cell Ringleader for Vicente Carrillo Fuentes Drug Trafficking Organization Detained Pending TrialRead the Press Release
In El Paso, 36-year-old Manuel Gerardo Velasquez (aka “Shorty”), an El Paso cell ringleader for the Vicente Carrillo Fuentes drug trafficking organization, will remain in federal custody pending trial for allegedly operating a Continuing Criminal Enterprise (CCE) responsible for the smuggling and distribution of more than 1,000 kilograms of marijuana and the repatriation of drug proceeds to the Republic of Mexico announced United States Attorney Robert Pitman and Drug Enforcement Administration Special Agent in Charge Joseph M. Arabit.
This morning, Velasquez waived his right to a detention hearing originally scheduled for today in United States Magistrate Court in El Paso. A 13-count federal grand jury indictment returned on August 7, 2013, charges Velasquez and others with one count of conspiracy to possess with intent to distribute marijuana. The indictment alleges that from January 1997 until the present, the defendants conspired to distribute more than 1,000 kilograms of marijuana throughout Texas, Oklahoma and into Kansas. In addition to the drug conspiracy charge, Velasquez is charged with one count of operating a continual criminal enterprise, one count of conspiracy to commit money laundering, eight counts of aiding and abetting the intentional possession of marijuana; and, two counts of maintaining a drug involved premise. The indictment also seeks the criminal forfeiture of proceeds derived from the criminal scheme including cash and eight real estate properties in El Paso; Afton, OK; and, Grove, OK. During this investigation, authorities have seized some 3,800 pounds of marijuana and approximately $10,000 in U.S. Currency.
Other defendants charged in this indictment include: 39-year-old Jose Antonio Cabral-Espinoza, a Mexican citizen residing in El Paso; 30-year-old Juan Carlos Campa-Gutierrez of Juarez, Mexico; 44-year-old Cesar Ricardo Olague-Duran, of Juarez, Mexico; 47-year-old Octavio Alonso Montenegro-Muniz of El Paso; 58-year-old Cecil Ellis Blythe of Afton, OK; 32-year-old Carlos Alberto Gijon of El Paso; 31-year-old Daniel Medina of El Paso; 44-year-old Mario Garcia-Reveles, a Mexican citizen residing in El Paso; 31-year-old Joshua Lee Harris of Wichita, KS; 61-year-old Richard Lee Harris of Wichita, KS; 31-year-old Endi Alberto Renteria Bravo of Wichita, KS; 74-year-old Gilberto Velasquez, Sr., of El Paso; 66-year-old Victoria Consuelo Velasquez of El Paso; 52-year-old Sally Barraza-Mena of El Paso; and, 40-year-old Maria Elena Avila of El Paso. Blythe, Gijon, Medina, Gilberto and Victoria Velasquez, Barraza and Avila have been released on bond pending trial. The other named defendants are in custody.
“The numerous arrests and seizures that occurred in this investigation have severely disrupted the operations of this drug trafficking organization. In El Paso and all across our region, DEA and our partners are determined to continue to identify drug traffickers, shut down their operations and bring them to justice,” stated DEA Special Agent in Charge Joseph M. Arabit, El Paso Division.
Velasquez faces between 20 years and life in federal prison upon conviction of the CCE charge. All of the defendants face between ten years and life in federal prison upon conviction of the drug trafficking conspiracy charge.
This case resulted from an investigation by the Drug Enforcement Administration together with Homeland Security Investigations, U.S. Border Patrol, U.S. Marshals Service, El Paso County District Attorney’s Office, El Paso Police Department, Anthony Police Department, El Paso County Sheriff’s Office and the Texas Office of the Attorney General.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Abilene, Texas, Dentist Pleads Guilty in Medicaid Fraud SchemeRead the Press Release
Defendant Worked as a Pediatric Dental Provider at Kool Smiles and Personally Benefitted From Scheme
ABILENE, Texas — A dentist who practiced pediatric dentistry at Kool Smiles in Abilene, Texas, has admitted that he made false and fraudulent statements and entries on patient records, which caused Medicaid to be billed for, and pay, at least $120,000 for services falsely claimed to have been performed, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Dr. Tuan Truong, aka “Terry Truong,” of Abilene, pleaded guilty this afternoon, before U.S. District Judge Jorge A. Solis, to an information charging one count of making a false statement in connection with a health care matter. Truong, who will remain on bond, faces a maximum statutory penalty of five years in federal prison, a $250,000 fine and restitution. A sentencing date was not set.
According to documents filed in the case, in summer 2008, Truong began working for Kool Smiles, which paid him a base salary and offered opportunities for bonuses based on additional procedures he performed in excess of daily targets set by Kool Smiles management. Dentists were required to use professional judgment in the treatment and management of patient care.
Beginning on June 30, 2008, and continuing to July 10, 2009, Truong made false entries on Kool Smiles patient records, purporting to have performed dental services for Medicaid beneficiaries that he well knew he had not performed. As a result of the false and fraudulent statements and entries Truong made, Kool Smiles billed Medicaid for procedures that were not performed. In fact, during this time period, Truong made false entries in the Kool Smiles electronic database that caused Kool Smiles to bill and receive payment from Medicaid (and Medicaid affiliates) of more than $120,000, but less than $200,000 for services he claimed to have performed, but did not.
In addition, according to the factual resume filed, Truong personally benefitted from this scheme by receiving bonuses of $32,749 to which he would not have been otherwise entitled.
Kool Smiles has cooperated throughout the investigation, which was conducted by the Medicaid Fraud Control Unit of the Office of the Attorney General for the State of Texas and the FBI. Assistant U.S. Attorney Amy Burch, of the U.S. Attorney’s Office in Lubbock, Texas, is in charge of the prosecution.
10 Years in Federal Prison for Bourbonnais Man for Distribution of Crack Cocaine in Kankakee CountyRead the Press Release
Urbana, Ill. – U.S. District Judge Michael P. McCuskey today sentenced Damos S. Rosenthal, 39, of Bourbonnais, Ill., to a term of 121 months in federal prison for distribution of crack cocaine.
On Apr. 8, 2013, Rosenthal pleaded guilty to distribution of 28 grams or more of crack cocaine in Kankakee on various occasions in October 2012. Rosenthal was arrested on Jan. 17, 2013, and has remained in the custody of the U.S. Marshals Service since his arrest.
A factor in Rosenthal’s sentence, who faced a mandatory minimum sentence of 10 years and up to life in prison, was two prior convictions for manufacture/delivery of cocaine: in 2002, Rosenthal was convicted in Kankakee County Circuit Court and sentenced to probation; in 2003, Rosenthal was again convicted for manufacture/delivery of cocaine, and was sentenced to serve five years in the Illinois Department of Corrections.
The case resulted from an investigation by the Kankakee Area Metropolitan Enforcement Group (KAMEG), with assistance from the Kankakee County State’s Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Ronda H. Coleman.
26 August 2013
Wichita Man Convicted on Firearms ChargeRead the Press Release
WICHITA, KAN. – A Wichita man has been found guilty on a federal firearms charge, U.S. Attorney Barry Grissom said today.
Troy A. Bong, 44, Wichita, Kan., was tried in U.S District Court in Wichita and a jury found him guilty on one count of unlawful possession of a firearm after a felony conviction. During trial, the prosecutor presented evidence that Bong was arrested Dec. 22, 2012, when Wichita police stopped the car in which he was riding after it left a known drug house. The officer, who recognized Bong from a previous arrest, told him to step out of the car. When the officer tried to pat him down for weapons, Bong resisted and a fight developed. Officers found that Bong possessed knives and a handgun. Bong was prohibited from possessing a firearm because of prior felony convictions.
Sentencing is set for Nov. 18. Bong faces a penalty of not less than 15 years under the Armed Career Criminal Act. Grissom commended the Wichita Police Department and Special Assistant U.S. Attorney Michelle Jacobs for their work on the case.
West Valley Man Sentenced for Attempted Enticement of a MinorRead the Press Release
BUFFALO N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Michael Lee Reed, Jr. 22, of West Valley, N.Y., who was convicted of attempted enticement of a minor to engage in sexual activity, was sentenced to 10 years in prison and five years of supervised release by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated that the defendant attempted to entice a minor victim to send him provocative pictures through text messages. The victim's mother contacted law enforcement after looking through her child's cellular telephone. As a result, no pictures were ever sent by the victim to the defendant.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The conviction is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Steven L. Lanser, Acting Special Agent in Charge and the Cheektowaga Police Department under the direction of Police Chief David Zack.Two Sentenced to Federal Prison for Meth ConspiracyRead the Press Release
Two people who conspired to manufacture and distribute methamphetamine were sentenced August 22, 2013, to fourteen months and eight months in federal prison, respectively.
Vicki Shannon, 50, and David Robley, 52, from Spencer and Early, Iowa, received the prison terms after May 2013, guilty pleas to conspiracy to manufacture and distribute methamphetamine.
At the guilty pleas, each admitted their involvement from about 2010 through January 2013, in a conspiracy that manufactured and distributed at least 50 grams of actual (pure) methamphetamine. According to pseudoephedrine purchase logs obtained in the investigation, starting in January 2010 through January 2013, Shannon, Robley and others obtained nearly 500 grams of pseudoephedrine, all for the use of manufacturing methamphetamine. On January 11, 2013, officers conducted a traffic stop of a vehicle Robley was driving. Based on the traffic stop, officers secured a search warrant of an outbuilding in Clay County, Iowa, which Robley had departed just prior to the traffic stop. Officers located and seized a number of items indicative of manufacturing methamphetamine, including but not limited to, tree spikes, lithium batteries, empty boxes of pseudoephedrine pills, blister packs, coffee filters, clear tubing, lye, muriatic acid and a Gatorade bottle containing what appeared to be an active “one-pot” style methamphetamine cook.
Shannon and Robley were sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Shannon was sentenced to 14 months’ imprisonment. Robley was sentenced to 8 months’ imprisonment. A special assessment of $100 was imposed for each. And each must also serve a two-year term of supervised release after the prison terms. There is no parole in the federal system. Shannon and Robley are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Iowa Division of Narcotics Enforcement and the Clay County Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-4007.
Two La Monte Men Sentenced for Drug TraffickingRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two La Monte, Mo., men were sentenced in federal court today in separate but related cases that stem from an investigation into a Mexican drug-trafficking organization.
These cases are part of a federal investigation of the Los Parientes drug-trafficking organization, composed of a group of Mexican nationals who illegally smuggled large quantities of methamphetamine into southern California, which would then be driven cross-country to Kansas City, Kan., for further distribution.
USA vs. Torres
Jose Martinez Torres, 27, of La Monte was sentenced by U.S. Chief District Judge Fernando J. Gaitan to 10 years and one month in federal prison without parole.
On Nov. 5, 2012, Torres pleaded guilty to his role in a conspiracy to distribute methamphetamine from August 2010 to Nov. 25, 2011. Torres admitted that he participated in two undercover drug buys involving an undercover law enforcement officer. Torres supplied 1 ½ ounces of methamphetamine to Justin Jeremiah Sorrell of Green Ridge, Mo., for $3,100, which Sorrell sold to the undercover officer. During the transaction, Torres explained how his cousins brought the methamphetamine from Sinaloa, Mexico, and stated that the guy they obtained the methamphetamine from in Sinaloa was number two on the FBI’s ten most wanted list. He explained how the methamphetamine was moved from Sinaloa to Tijuana, Mexico, where it was smuggled across the border. A few days later, Torres again supplied methamphetamine to Sorrell. Sorrell then sold an undercover law enforcement officer two ounces of methamphetamine for $3,400.
Torres was arrested during a traffic stop on July 8, 2011. During a search of his vehicle, a state trooper found a bag of methamphetamine and a bag of cocaine hidden inside a flashlight under the driver’s seat. After being released on bond by state authorities, he was later arrested on a federal warrant. When officers searched his car, they found two pistols and $80,000, which Torres must forfeit to the government along with $6,051 found in the pockets of his jacket.
Sorrell, who pleaded guilty in a separate case, was sentenced on April 1, 2013, to four years in federal prison without parole.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Missouri State Highway Patrol, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Drug Enforcement Administration, the Mid-Missouri Drug Task Force, the Sedalia, Mo., Police Department and the Warrensburg, Mo, Police Department.
USA vs. Arroyo
Miguel Angel Arroyo, 26, of La Monte, was sentenced by U.S. Chief District Judge Fernando J. Gaitan to 10 years in federal prison without parole.
On March 25, 2013, Arroyo pleaded guilty to distributing methamphetamine. Arroyo admitted that he sold two ounces of methamphetamine to an undercover law enforcement officer for $2,800. During the transaction, Arroyo stated that he was selling four pounds of methamphetamine each week and that he was expecting 400 pounds of marijuana “coming in next week.”
On another occasion, Arroyo sold a pound of marijuana to an undercover law enforcement officer for $650.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Missouri State Highway Patrol, U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Drug Enforcement Administration and the Sedalia, Mo., Police Department.Two Area Men Charged with MurderRead the Press Release
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana-United States Attorney David Capp announced that Oscar Cosme, 40, of East Chicago, Indiana, and Kiontay Pennington, 34, of Gary, Indiana, were charged by Complaint with allegedly committing murder resulting from the use and carrying of a firearm during a drug trafficking crime and aiding and abetting the same.
According to the Complaint, on May 16, 2003, Pennington, Cosme and others shot to death Julio Cartagena in front of an apartment complex in East Chicago in retaliation for the theft of narcotics.East Chicago police were nearby and began a chase of the vehicle fleeing from the scene that ended in a high impact crash.Pennington and Cosme were identified as two of the four occupants of the vehicle.A subsequent investigation revealed that the underlying narcotics theft involved a street gang, the “Two Six”, which was active in East Chicago at that time.
Cosme was arrested on August 23, 2013.Pennington was arrested this morning at his residence.Both had their initial appearance today before United States Magistrate Judge John Martin in Hammond and are scheduled for probable cause/detention hearings on August 29, 2013 at 9:00 and 9:30 AM.
United States Attorney Capp stated, “These arrests are part of our ongoing effort to remove violent offenders from the streets, particularly those allegedly associated with criminal street gangs.We will continue to investigate violent acts, even those, like here, that are more than ten years old.As I have stated publicly in the past, we are coming after those who are or were members of, or affiliated with, criminal organizations, regardless of when their criminal conduct may have occurred.”
These charges were filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives Merrillville Field Office, the Bureau of Alcohol Tobacco Firearms and Explosives HIDTA Taskforce, the Federal Bureau of Investigation and the East Chicago Police Department.This case has been assigned to and will be prosecuted by Assistant United States Attorney David J. Nozick.
The United States Attorney's Office emphasized that a Complaint is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
Two Anchorage Men indicted on multiple drug charges including conspiring to distribute drugs that resulted in death of a minorRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that two Anchorage residents are charged with participating in a drug trafficking conspiracy that resulted in the death of a minor, as well as distributing heroin that resulted in the same death.
Sean Michael Warner, 28, and Max Raymond Jewett, 36, were indicted by a federal grand jury in Anchorage. Both Warner and Jewett are charged with participating in a drug trafficking conspiracy that resulted in the death of a minor, as well as distributing heroin that resulted in the same death. In addition, Warner was also indicted for distributing a controlled substance to underage individuals, distributing drugs within 1000 feet of an elementary school, and maintaining drug-involved premises within 1000 feet of a school and playground.
According to the indictment presented to the court, by December 23, 2011, Warner and Jewett were conspiring together and with others to distribute controlled substances, including the controlled substance that caused serious bodily injury and death to a minor. Warner and Jewett are both alleged to have distributed the heroin that caused the death of the same minor.
In addition, the indictment alleges that in the days prior to the drug-related death of the one minor, Warner distributed heroin to a different minor. Additionally, the indictment alleges that in late 2011, Warner’s residence was a drug-involved premises located within 1000 feet of both a playground and Turnagain Elementary School. Also during that time, Warner distributed methamphetamine and heroin in close proximity to both Turnagain Elementary and a playground.
Assistant U.S Attorney Kimberly Sayers-Fay and Special Assistant U.S. Attorney Regan Williams, a state district attorney, presented the case to the grand jury. The federal indictment parallels a state manslaughter indictment of Warner returned in January 2012, and reflects a joint determination by the State of Alaska and the U.S. Attorney’s Office that federal prosecution was appropriate in this case. Sayers-Fay, a federal prosecutor, and Williams, a state prosecutor, will cooperate in the prosecution of this case in federal court.
Assistant U.S. Attorney Sayers-Fay advised that the two counts on which both Warner and Jewett were indicted carry a maximum penalty of life imprisonment, accompanied by up to a lifetime of supervised release, and a $1 million fine. The charges of drug distribution resulting in death and conspiring to distribute drugs resulting in death each carry a mandatory minimum sentence of 20 years’ imprisonment.
The charges against Warner of engaging in the alleged distribution of drugs to underage individuals, distributing drugs near a school and playground, and maintaining drug-involved premises near a school and playground, carry maximum penalties of 40 years’ in prison and lifetime supervised release, and maximum fines ranging from $1 million to $2 million.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Tuscumbia Man Sentenced for Armed Bank RobberyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Tuscumbia, Mo., man was sentenced in federal court today for the armed robbery of First State Bank in Iberia, Mo.
David Brian Krzysik, 49, of Tuscumbia, was sentenced by U.S.District Judge Brian C. Wimes to eight years and three months in federal prison without parole.
On Oct. 31, 2012, Krzysik pleaded guilty to one count of bank robbery and one count of carrying a firearm in relation to a crime of violence.
On March 15, 2012, at 11:15 a.m., Krzysik entered the First State Bank in Iberia. He was wearing a black wig, a black costume beard, sunglasses, light blue jeans, a jacket, a red baseball cap, and gloves. Krzysik approached a bank teller and placed a black revolver on the counter in front of the teller. “This is real,” Krzysik said. “I want your money. I don’t want to hurt anybody.” Krzysik placed a black duffel bag on the counter and the teller emptied the currency in her drawer into the bag. Krzysik approached another teller, who also put money into the duffel bag, then left the bank. The total amount of cash taken during the robbery was $3,651.
Krzysik also admitted that he attempted, unsuccessfully, to rob Central Bank in Tuscumbia. At approximately 11:45 a.m., Krzysik arrived at the Central Trust Bank in Tuscumbia. Krzyski attempted to enter the bank through the front door, however, bank employees saw him coming – wearing the wig, beard and sunglasses – and locked the door. Krzysik left the bank, returned to his car, placed the duffel bag in the trunk, and then left the area.
Police officers, who responded to a 911 call by bank employees, arrived and tried to stop Krzysik, who was driving in circles around the town square. Krzysik drove off the road onto a small trail that led to a wooded area, and drove down an embankment before he stopped and was arrested.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the FBI, the Miller County, Mo., Sheriff’s Department and the Missouri State Highway Patrol.
Texas Man Sentenced for Bank Robbery in New EnglandRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on Aug. 26, 2013, Johnner J. Ward Jr., 29, Abilene, Texas, was sentenced by U.S. District Judge Daniel L. Hovland on a charge of bank robbery and a charge of use and carry of a firearm during and in relation to a crime of violence.
On the charge of bank robbery, Judge Hovland sentenced Ward to four years with the Bureau of Prisons. On the charge of use and carry of a firearm during and in relation to a crime of violence, Judge Hovland sentenced Ward to seven years with the Bureau of Prisons, which will run consecutively to the bank robbery sentence, to be followed by three years of supervised release. Ward was sentenced to pay a $200 special assessment to the Crime Victim’s Fund and restitution of $4,053.35.
On Oct. 18, 2012, at approximately 8:20 a.m., two men wearing black ski masks and carrying guns entered American Bank Center in New England, N.D. After obtaining money from a bank employee, the men fled the scene.
During the investigation it was discovered that shortly before the robbery, a man who matched the physical characteristics of one of the bank robbers had stopped at a gas station in New England and had purchased gas. Law enforcement obtained the video from the gas station and distributed a picture of the suspect. A detective with the Rapid City (S.D.) Police Department recognized the man as Colt Schneider. Further investigation led to the identity of the other man – Johnner Joe Ward Jr.
The police found that Schneider and Ward worked for a construction company in Rapid City and that they had worked on a construction job in New England a few months before the robbery.
On Nov. 10, 2012, Schneider was arrested in Sarasota, Fla.
On Nov. 2, 2012, Ward was arrested in Midland, Texas. On Feb. 22, 2013, Ward pleaded guilty to charges of bank robbery and use and carry of a firearm during and in relation to a crime of violence.
The case was investigated by the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, North Dakota Bureau of Criminal Investigation, Hettinger County Sheriff’s Department, North Dakota Highway Patrol, Dickinson Police Department, Bismarck Police Department, Rapid City Police Department, Midland (Texas) Police Department, Bradenton (Florida) Police Department, and Florida Game & Fish.
Schneider was convicted by a federal jury on Aug. 22, 2013, on charges of bank robbery and use and carry of a firearm during and in relation to a crime of violence. Sentencing for Schneider has been scheduled for Nov. 15, 2013, in U.S. District Court in Bismarck, N.D., at 10:00 a.m.
Assistant U.S. Attorney David Hagler prosecuted the case.
Steven William Carpenter, Suzette Gulyas Gal, and Andras Zoltan Gal 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 26, 2013, before U.S. District Judge Sam E. Haddon, STEVEN WILLIAM CARPENTER, age 56, SUZETTE GULYAS GAL, age 55, and ANDRAS ZOLTAN GAL, age 22, residents of California, were sentenced as follows.
STEVEN WILLIAM CARPENTER was sentenced to a term of:
Prison: 188 months
Special Assessment: $300
Restitution: $675,406.62
Supervised Release: 3 years
ANDRAS ZOLTAN GAL was sentenced to a term of:
Prison: 72 months
Special Assessment: $300
Restitution: $675,406.62
Supervised Release: 2 years
SUZETTE GULYAS GAL was sentenced to a term of:
Prison: 120 months
Special Assessment: $300
Restitution: $675,406.62
Supervised Release: 3 years
STEVEN WILLIAM CARPENTER, SUZETTE GULYAS GAL, and ANDRAS ZOLTAN GAL were found guilty of the following:
Count I: Conspiracy to Commit Fraud
Count II: Investment Fraud and Wire Fraud
Count III: Investment Fraud and Wire Fraud
In addition, SUZETTE GAL was sentenced to 6 months prison, to run concurrently, after having been found guilty at a second trial of contempt of court.
At trial, the following evidence and testimony was presented to the jury.
The above-named defendants worked together to solicit funds from the elderly, the infirm, and the gullible by persuading these individuals to invest in fraudulent and fictitious oil and gas investment opportunities on the Fort Peck Indian Reservation.
While the defendants initially obtained legitimate oil and gas leases on the Fort Peck Indian Reservation, those rights were terminated on October 5, 2007, for failure to make the required lease payments. Moreover, the defendants never made any legitimate payment to establish or further an oil or gas venture on the Fort Peck Indian Reservation.
Despite all of the above, the defendants bilked investors into paying well in excess of half a million dollars in a non-existent venture. The case involved over fifty victims, most of whom struggled to make ends meet even before losing money to the fraud. All while the victims suffered, the defendants enjoyed a life of luxury, took extravagant vacations, and basked in the fruits of their fraud.
Today's sentencings of Steven Carpenter, Suzette Gal, and Andras Gal sends an important message to professional telemarketers who prey on the country's elderly, desperate, and gullible. The only way to stem the tide of these predators is to let them know that when they are caught the consequences will be significant. The United States Attorney's Office will continue every effort and enlist every resource to identify and prosecute those who enrich themselves by defrauding others. This investigation, which involved hundreds of man hours of undercover operations, surveillance, forensic document examination, and witness interviews, was a near perfect cooperative effort between the Federal Bureau of Investigation and the Department of Interior's Office of Inspector General. Rarely do we see such seamless and effective coordination of agency efforts. I want to commend the excellent work done by our trial lawyers, AUSAs Carl Rostad and Ryan Weldon who tried the case on behalf of the United States, and investigators who conducted an extraordinary investigation." U.S. Attorney Michael W. Cotter.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that they will likely serve all of the time imposed by the court. In the federal system, they do 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 a team of agents and auditors working with the U.S. Attorney's Guardians Project, including the Office of Inspector General for the Department of Interior and the Federal Bureau of Investigation.
St. Louis Man Sentenced for Drug Distribution and Firearms PossessionRead the Press Release
St. Louis, MO – STANLEY "OUTLAW" CARTER of St. Louis City was sentenced to 20 years imprisonment on one felony count of brandishing a firearm in furtherance of a drug trafficking crime and a second felony count of discharging a firearm in furtherance of a drug trafficking crime. The sentence imposed today by United States District Court Judge Henry E. Autrey must be served consecutively to the not-yet-completed sentence achieved by the St. Louis Circuit Attorney’s Office after Carter shot and wounded an individual in the spring of 2008.
Carter pleaded guilty to two separate federal crimes in April 2013. First, on March 26, 2008, Carter and his co-defendant Antonio “Lips” Shaw and another accomplice, Richard “Repeat” Bobbitt, entered a City of St. Louis residence with guns drawn. The residence was occupied at the time by a 10-year old girl, a teenage boy and the children's mother. Carter and his two accomplices stole a significant amount of marijuana that they located in the residence's lower level.
Second, on May 10, 2008, Carter utilized an AR-15 assault-style rifle to execute two individuals associated with a rival group. The two men were inside a vehicle when Carter approached and opened fire from point-blank range. The shooting occurred at the area commonly referred to as "the Circle" located near 1199 Riverview Boulevard within the City of St. Louis. The first victim, Adolph Ellison, was pronounced dead at the scene. The second victim, Donald Mack, died shortly after. Immediately following the shooting, Carter and his two accomplices, again being Shaw and Bobbitt, fled the scene and undertook efforts to conceal evidence related to the crime.
Carter's co-defendant, Antonio Shaw, was previously sentenced to over 31 years imprisonment on one felony count of conspiracy to possess with the intent to distribute marijuana and cocaine base (crack) and a second felony count of brandishing a firearm in furtherance of a drug trafficking crime on April 30, 2013. Shaw was convicted by a jury after a six-day trial.
Carter’s sentencing brings to a close the federal investigation into violent criminal activity within the City of St. Louis committed by members of a group commonly referred to as the “Dip Set.” The investigation was initiated in 2009 and conducted by the St. Louis Metropolitan Police Department, St. Louis County Police Department, United States Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Marshals Service, with the cooperation and support of the St. Louis Circuit Attorney’s Office.
St. Charles Parish Man, Chad Michael Hotard, Charged with Production and Distribution of Child PornographyRead the Press Release
CHAD MICHAEL HOTARD, age 28, a resident of Luling, Louisiana, was charged today in a Bill of Information with 2 counts of production and 1 count of distribution of child pornography, announced U. S. Attorney Dana J. Boente.
According to the Bill of Information, HOTARD knowingly employed, used, persuaded, induced, enticed and coerced a minor to engage in sexually explicit conduct in order to produce child pornography on two separate occasions, December 13, 2012 and March 12, 2013. In addition, HOTARD was charged with distributing digital images and computer images of a minor engaging in sexually explicit conduct on March 13, 2013.
If convicted of production of child pornography the mandatory minimum sentence is 15 years and a maximum sentence of 30 years as to each count. Distribution of child pornography carries a mandatory minimum sentence of 5 years and a maximum sentence of 20 years. All three charges also carry a fine of $250,000, a term of supervised release for life, and sex offender registration.
U. S. Attorney Boente reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division's Child exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to 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, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the U.S. Department of Homeland Security-Homeland Security Investigations and the St. Charles Parish Sheriff’s Office and prosecution of this case is being handled by Strike Force Chief and Project Safe Childhood Coordinator, Assistant U. S. Attorney Brian M. Klebba.
(Download Bill of Information )
Springfield, Missouri Financial Advisor Nadia Cavner Sentenced for Felony Interstate Stalking ChargeRead the Press Release
Memphis, TN – Nadia Cavner, 53, of Springfield, MO, was sentenced today to five years of
probation, including six months home confinement, as well as four hours per month of
community service over the course of the first two years of her probation. The two victims,
fourth year medical students preparing for their upcoming fellowships, expressed to the court
their desire for closure to what has been a nearly two year ordeal. U.S. District Court Judge John
T. Fowlkes, Jr., honored the victims’ request for closure in accepting the terms of the plea
agreement, also imposing the condition of home confinement. The sentencing follows Cavner’s
plea to a criminal information charging her with one felony count of violating the federal
interstate stalking statute, announced U.S. Attorney Edward L. Stanton III.
According to the information and facts revealed during her sentencing hearing, from July 9,
2011, until November 15, 2011, Cavner, and individuals employed by her, traveled from
Springfield, MO to Memphis with the intent to injure, harass, or intimidate her daughter’s former
boyfriend and his new girlfriend. These actions caused substantial emotional distress to the
individuals, their families, and close acquaintances.
As stated at her change of plea hearing, Cavner utilized multiple means to stalk and harass the
victims including making and causing others to make harassing phone calls; leaving anonymous
notes designed to harass and intimidate the victims; having the victims followed during trips;
hiring people to disrupt the victims’ relationship; and paying for an associate to temporarily
move to Memphis for the purpose of conducting surveillance upon the victims. In addition,
Cavner sought to have electronic listening devices installed in the victims’ homes.
Cavner will be required to attend counseling as part of the terms of probation. This case was
investigated by the FBI. Assistant United States Attorney Brian K. Coleman is prosecuting this
case on behalf of the government.
# # # #Sioux Falls Man Sentenced for Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, man charged with Sex Trafficking by Force, Fraud, or Coercion was sentenced on August 26, 2013, by United States District Judge Karen E. Schreier.
Tajahn Clinton, age 36, was sentenced to 402 months of imprisonment, 5 years of supervised release, restitution to the victim in the amount of $1,100, and a $100 assessment to the Federal Crime Victims Fund. Judge Schreier will recommend to the Bureau of Prisons that Clinton participate in the drug and alcohol treatment program during the time of his incarceration.
Clinton pled guilty on May 15, 2013, to Count 2 of the Fourth Superseding indictment charging Sex Trafficking by Force, Fraud, or Coercion.
United States Attorney Johnson stated that, “Today’s sentence demonstrates that sex traffickers will pay a heavy price for victimizing women in South Dakota. Federal, state and local law enforcement will continue our work to investigate and prosecute individuals such as Clinton who prey on the most vulnerable in our community.”
The investigation was conducted by the Department of Homeland Security Investigations, the Federal Bureau of Investigation, the Sioux Falls Police Department, the Minnehaha County Sheriff's Office, and the South Dakota Division of Criminal Investigation. Assistant United States Attorneys Kevin Koliner and Jeff Clapper prosecuted the case.
The defendant was remanded to the custody of the U.S. Marshal.Sioux City Couple Sentenced to Federal Prison for Crack ConspiracyRead the Press Release
A Sioux City couple who conspired to distribute crack cocaine were sentenced August 16, 2013, to federal prison.
Douglas Young, 37, and Samantha Grant, 25, each from Sioux City, Iowa, received the prison terms after May 13, 2013, guilty pleas to conspiracy to distribute crack cocaine and possession with intent to distribute crack cocaine.
At the guilty pleas, Young and Grant each admitted their involvement from about 2011 and continuing through about August 21, 2012, that distributed at least 500 grams of crack cocaine. During a traffic stop on August 21, 2012, officers conducted a search of Young and Grant and seized approximately two ounces of crack cocaine. Young and Grant intended to distribute the crack cocaine to individuals in Sioux City, Iowa. Young and Grant traveled to Omaha, Nebraska on a number of occasions, transporting between ½ ounce to 4 ½ ounce quantities of crack cocaine back to Sioux City for redistribution.
Young and Grant were sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Young was sentenced to 24 months’ imprisonment. Grant was sentenced to 39 months’ imprisonment. A special assessment of $200 was imposed for each. And each must also serve a 5-year term of supervised release after the prison terms. There is no parole in the federal system.
Young and Grant are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that 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 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 12-4107.
Seventeen Colombians Indicted in Eastern District of Texas Drug ConspiracyRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas – U.S. Attorney John M. Bales announced today that 17 alleged members of a Colombian drug trafficking organization have been indicted by a federal grand jury in the Eastern District of Texas.
The indictment, which was returned by a federal grand jury on Feb. 27, 2013, and unsealed on Aug. 5, 2013, charges the 17 defendants with drug trafficking crimes, including conspiracy to possess with intent to manufacture and distribute cocaine, conspiracy to import cocaine and to manufacture and distribute cocaine knowing it will be unlawfully imported into the United States, and conspiracy to possess with intent to distribute cocaine while on board a vessel subject to the jurisdiction of the United States. According to the indictment, the defendants are alleged to be members of a drug trafficking organization responsible for sending cocaine from Colombia and Mexico to the United States.
The Colombian National Police (CNP) began executing arrest warrants on Aug. 23, 2013 in Colombia. Of the 17 defendants, 10 are now safely in custody. If convicted, they face up to life in federal prison.
"Four years ago, we purposed to look differently at the drug prosecutions in our office and to better use our time and resources by working smarter with what we hope will result in maximum results,” said U.S. Attorney Bales. "The obvious step was to look at the root of the drug crime problem. Invariably, the leads always came back to Mexico and to Colombia. Happily, we have discovered extraordinary partnerships with the Colombian National Police who are outstanding and very brave law enforcement officers. This investigation is the second significant case where we have utilized American laws to address criminality in Colombia that is affecting the United States. Late last year, our prosecutors completed the successful prosecution of 25 Colombian nationals who had conspired to import cocaine into the United States. These cases are challenging, but essential if we are to effectively enforce the drug laws of the United States. I commend the extraordinary work of the many agents and officers, both here in Texas and in Colombia, who are working on this case and we look forward to the extradition of the arrested defendants."
“The DEA’s commitment to ensure the safety of our citizens is a global effort,” said DEA Acting Special Agent in Charge Daniel R. Salter of the Dallas Field Division. “This investigation is a perfect example of the DEA’s outstanding partnership with the Government of Colombia and the Colombia National Police. The DEA’s resolve remains steadfast and we will continue to pursue and bring to justice those that are determined to bring illicit drugs into our great nation.”
This case is the result of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation. 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.
The case is being investigated by the U.S. Drug Enforcement Administration Enforcement Group 1, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, HSI-ICE, and the Colombian National Police. This case is being prosecuted by Assistant U.S. Attorney Ernest Gonzalez. Provisional arrest warrants, the legal instruments which triggered the enforcement actions and arrests in Colombia, were prepared with the assistance of the DOJ Criminal Division's Office of International Affairs in Washington D.C.
An indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Owners/Operators of Two Shreveport Businesses Plead Guilty to Money Laundering, Wire Fraud and Tax Evasion ChargesRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that William Paul Boyter, 76; Michael Paul Boyter, 51; and Anthony Reuben Riley, 49, all of Shreveport, pleaded guilty before U.S. District Judge Elizabeth E. Foote to charges of conspiracy, money laundering, tax evasion, failure to comply with federal banking regulations, and wire fraud. Also charged as defendants in the case are two businesses operated by the three defendants: Mike’s Auto Sales Inc. and A-1 Auto Finance Company.According to evidence presented in the 19-count superceding indictment filed on September 19, 2012, the defendants engaged in a conspiracy to commit money laundering beginning in 1996 through November 2010. The defendants’ scheme revolved around the sale and financing of used and new vehicles to individuals who derived, or represented that they derived, significant income from the distribution of illegal drugs. The defendants knowingly accepted cash proceeds from drug dealers, allowed vehicle purchases in the names of nominees, and falsified records of payments received. The defendants provided false information to law enforcement agencies, including the Shreveport Police Department and the Harrison County Sheriff’s Office, to facilitate the release of vehicles seized from drug dealers.
In 2009 and 2010, the FBI conducted multiple “sting” operations directing cooperating individuals to purchase vehicles in the names of nominees and using large cash payments towards the purchase of those vehicles. These operations proved that the defendants readily accepted large amounts of money thought to be drug proceeds and skimmed cash from down payments by manipulating records to show lower sales prices and reduced amounts of down payments.
The indictment also charges several violations of The Bank Secrecy Act (BSA), which requires that businesses, including motor vehicle dealerships, take a number of precautions against financial crimes. One such precaution is filing and reporting certain data indicative of money laundering, including cash transactions over $10,000 on a Form 8300. The indictment charges five counts of failure to file a Form 8300 and three counts of filing a false Form 8300.
Additionally, the indictment charges that Michael Boyter evaded taxes for the years of 2007 through 2010 by filing false information on his tax documents. Michael Boyter intentionally understated his income on his personal tax returns, while paying for personal items and services, including an extensive house remodel, with business checks and/or cash. In his plea agreement, Michael Boyter agreed to pay $290,381 to the IRS.
“The defendants have admitted to their involvement in assisting drug traffickers in their illegal activities that took place at Mike’s Auto Sales and A-1 Auto Finance,” Finley stated. “They sold vehicles to drug dealers and used the money to enrich themselves. They further broke the law by attempting to hide the proceeds of the illegally obtained wealth by lying on tax forms and not reporting income. We thank all of the federal, state and local law enforcement agencies who participated in this investigation. My office will continue to vigorously prosecute those who do business with criminal elements in order to make quick profit.”
“This is an important victory for the American public,” stated Gabriel Grchan, Special Agent in Charge, IRS Criminal Investigation. “Michael Boyter, William Boyter and Anthony Riley have taken responsibility for their roles in these crimes with the entering of their guilty pleas. It is important to note that not only are the Boyters and Mr. Riley going to be sentenced for their crimes, but the government has seized a significant portion of the illegal proceeds through asset forfeiture. The role of IRS CI in money laundering investigations is to follow the money so we can financially disrupt and dismantle these types of criminal enterprises. IRS Criminal Investigation is proud to provide its financial expertise as we work alongside our law enforcement partners to bring criminals to justice.”
The defendants also agreed to forfeit the property of Mike’s Auto Sales and A-1 Auto Finance as well as a money judgment in the amount of $1.3 million.
William Paul Boyter faces up to 20 years in prison, a $250,000 fine, and three years of supervised release for the conspiracy to launder monetary instruments charge. Michael Paul Boyter also faces up to 20 years in prison, a $250,000 fine, and three years of supervised release for wire fraud and faces up to five years in prison, a $250,000 fine, and three years of supervised release for the evade or defeat tax charges. Riley faces up to 10 years in prison, a $250,000 fine, and three years of supervised release for the failure to file Form 8300 charges. A sentencing date of January 29, 2014 was set.
This prosecution is the culmination of an investigation dubbed Operation NOMAS and conducted by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint multi-agency group consisting of federal, state, and local law enforcement agencies with a cooperative approach to combat drug trafficking. Investigations of businesses that assist drug dealers in spending and hiding their criminal proceeds is an important part of the OCDETF mission.
Operation NOMAS was a jointly conducted investigation by the FBI’s Northwest Louisiana Violent Crimes Task Force, IRS-Criminal Investigations, DEA, U.S. Marshals Service, Immigration & Customs Enforcement, Shreveport Police Department, Caddo Parish Sheriff’s Office, Bossier City Police Department, Louisiana State Police, the Louisiana National Guard Counter-Drug Task Force, and the DeSoto Parish Sheriff’s Office. The Harrison County Sheriff’s Office in Marshall, Texas, also assisted.
Assistant U.S. Attorneys Allison D. Bushnell and Cytheria D. Jernigan are prosecuting the case.
Norfolk Man Sentenced for Carjacking Sears Delivery TruckRead the Press Release
NEWPORT NEWS, Va. – Gabriel Daniel Morrison Mitchell, 32, of Norfolk, Va. was sentenced on Friday to 260 months in prison. Mitchell was convicted by a federal jury on June 22, 2012, on charges of conspiracy to commit robbery, robbery, carjacking, and brandishing a firearm during a crime of violence.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Carl J. Vasilko, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after the sentencing by United States District Judge Mark S. Davis.
On January 10, 2012, Gabriel D. M. Mitchell and co-defendant, Antonio D. McGhee, carjacked a Sears delivery truck while it was delivering appliances in Hampton, Virginia. They were given information as to the property on the truck and the delivery schedule by an employee of a Sears sub-contractor, Travis Williams, who posed as one of the two victims. The actual victim was handcuffed, duct taped, and blind folded while Williams was barely restrained. Mitchell and McGhee used a U-Haul truck to off load the appliances. The Sears appliances were later recovered. McGhee was also convicted by a jury on June 22, 2012, and on February 4, 2013, was sentenced to 244 months in prison.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and assisted by Hampton Police Department. Assistant United States Attorney Howard J. Zlotnick and Brian J. Samuels prosecuted this 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.Navajo, N.M., Man Pleads Guilty to Federal Child Sex Abuse ChargeRead the Press Release
ALBUQUERQUE – Cornallsen Cortez, 31, an enrolled member of the Navajo Nation who resides in Navajo, N.M., pleaded guilty this morning to a felony information charging him with abusive sexual contact with a child. Under the terms of his plea agreement, Cortez will be sentenced to nine years in federal prison followed by a term of supervised release to be determined by the court. Cortez also will be required to register as a sex offender.
Cortez was arrested in March 2013, based on a criminal complaint alleging that he sexually abused a 12-year-old child in Nov. 2012, in a residence located on the Navajo Indian Reservation. During today’s proceedings, Cortez pleaded guilty to abusive sexual contact with a minor, and admitted that on Nov. 28, 2012, he sexually abused a 12-year-old child by touching the child inappropriately.
Cortez has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque and Gallup offices of the FBI and the Window Rock, Ariz., office of the Navajo Nation Division of Public Safety. It is being prosecuted by Assistant U.S. Attorney Jennifer M. Rozzoni as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Miami Resident Convicted in Identity Theft Tax Refund SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that defendant Math Benjamin, 33, of Miami, was convicted on two counts charged in the third superseding indictment.
Defendant Benjamin was found guilty on Friday, August 23, 2013 of one count of theft of government funds, in violation of Title 18, United States Code, Sections 641 and 2, and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2.
According to testimony and evidence presented at trial, Benjamin received multiple fraudulent tax refunds into his bank accounts. These fraudulent tax refunds were obtained by using the personal identification information of individuals without their permission.
Sentencing is scheduled for November 6, 2013, before U.S. District Judge Marcia Cooke. At sentencing, Benjamin faces up to 10 years in prison for the theft of government funds to be served consecutively by two years in prison for the aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to the USSS, IRS-CI, and the FBI. The case is being prosecuted by Assistant U.S. Attorneys Gera Peoples and Cristina Moreno.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican Man Sentenced for Being in the Country IllegallyRead the Press Release
BUFFALO N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Abdias Roblero-Mazariegos, 32, an alien from Mexico, who was convicted of unlawful re-entry after being convicted of an aggravated felony, was sentenced to 24 months in prison by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated that on October 28, 2012, the defendant was a passenger in a car that was stopped by the Albion Police Department.The defendant admitted during the encounter that he was a citizen of Mexico and illegally in the country. A background check revealed that the defendant had a conviction in 2002, in the state of Florida, for Assault with a Deadly Weapon without the intent to kill and was subsequently deported.
Sentencing is the culmination of an investigation on the part of Special Agents of the United States Border Patrol, under the direction of Chief Border Patrol Agent Kevin W. Oaks.Man Who Threatened Synagogue in Fargo, North Dakota, Charged with Civil Rights ViolationRead the Press Release
Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels and U.S. Attorney for the District of North Dakota Timothy Q. Purdon announced that Dominique Jason Flanigan was arraigned today on civil rights and threats charges.
Flanigan was indicted under seal by a grand jury on Dec. 12, 2012, for threatening a synagogue in Fargo, N.D. The two-count indictment charges Flanigan with issuing a threatening interstate communication and with interfering with a federally protected activity. The indictment was unsealed prior to his arraignment.
The indictment alleges that, on Jan. 4, 2011, Flanigan called Temple Beth El in Fargo, and left a voice mail message threatening the employees of the synagogue. The indictment charges that this threat intimidated and interfered with Temple Beth El employees because of their religion.
An indictment is merely an accusation and the defendant is presumed innocent unless proven guilty.
This case is being investigated by the FBI and is being prosecuted by Assistant U.S. Attorneys Lynn C. Jordheim and Megan A. Healy of the U.S. Attorney’s Office for the District of North Dakota and Trial Attorney Dana Mulhauser of the Criminal Section of the Civil Rights Division.
Man Arrested at LAX with Nearly 40,000 Bogus Erectile Dysfunction Pills Hidden in Golf Bag Sentenced to 2½ Years in Federal PrisonRead the Press Release
LOS ANGELES – A Koreatown man was sentenced this afternoon to 30 months in federal prison for smuggling nearly 40,000 counterfeit erectile dysfunction pills that were discovered in a golf bag and other luggage when he entered the United States at Los Angeles International Airport.
Kil Jun Lee, 73, who resides in the Koreatown district of Los Angeles, was sentenced by United States District Judge Dean D. Pregerson, who said the sentence, in part, was due to the threat to public health posed by the counterfeit pills.
A federal jury in May found Lee guilty of three counts of smuggling and three counts of trafficking in counterfeit goods for bringing the phony pills into the United States in February 2012. The retail value of the pills would have been well over $750,000 had they been genuine products.
The counterfeit products – purporting to be Viagra, Cialis and Levitra – were discovered by customs officials at LAX when Lee returned from a trip to China that included a stop in his native Korea. Most of the pills were hidden in a golf bag.
Analysis of the pills showed that they were inconsistent with the genuine products. While many of the pills contained the active ingredient for the brand name product, they typically contained the wrong amount (up to 150 percent of the claimed dose) or contained the active ingredient for a competitor’s product (so the purported Viagra would contain the active ingredient found in Cialis). Some of the counterfeit pills had no active ingredient at all.
When investigators searched Lee’s residence, they found a small number of counterfeit pills, as well as numerous counterfeit labels that were hidden under a rug.
“The danger of this conduct is substantial,” prosecutors wrote in a sentencing memorandum filed with the court. “Indeed, while the government is not aware of any inherently harmful chemicals contained in the pills, the prospect of a user ingesting pills that contain more active ingredient than is listed on the pill, or a different active ingredient than is supposed to be in that pill, raises serious medical concerns.”
The investigation in this case was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and U.S. Customs and Border Protection.
Release No. 13-109
Los Angeles Man Who Recruited ‘Patients’ from L.A.’s ‘Skid Row’ as Part of $10 Million Health Care Scam Sentenced to Federal PrisonRead the Press Release
LOS ANGELES – A Los Angeles man who recruited homeless people from the “Skid Row” section of Los Angeles as part of a widespread scheme to defraud Medicare and Medi-Cal by providing unnecessary health services was sentenced this morning to 18 months in federal prison.
Estill Mitts, 68, who lives near the Miracle Mile district of Los Angeles, was sentenced by United States District Judge George H. King. In addition to the prison term, Judge King ordered Mitts to pay more than $9.8 million in restitution.
In sentencing Mitts, Judge King stated that Mitts’ conduct was “fueled by greed to enrich himself,” and “breeds contempt for, leads to a lack of confidence in, and threatens the stability of” the Medicare program.
Mitts pleaded guilty in 2008 to conspiracy to commit health care fraud, money laundering and tax evasion. Mitts’ sentencing was delayed a number of times as he provided assistance to the government’s investigation that has led to 11 defendants being charged and convicted.
The Skid Row “capping” – or illegal referral – scheme was discovered in the fall of 2006 after local authorities observed some patients discharged from a local hospital being “dumped” on Skid Row. The patients subsequently reported that they had been paid to go to the hospital.
Mitts “was a ring-leader in a significant, long-term, serious crime that used the homeless as fodder for exploiting the Medicare and Medi-Cal programs,” prosecutors wrote in a sentencing memo filed with the court. Mitts admitted that he received more than $1 million in kickbacks from three hospitals that took in the illegally referred patients from Skid Row.
From 2004 until October 2007, Mitts operated the Assessment Center, a facility on East Seventh Street in downtown Los Angeles that was also known as 7th Street Christian Day Center. “Mitts employed individuals he called ‘stringers’ to recruit homeless people with promises of small payments,” according to the sentencing memorandum. “The Assessment Center was not a medical clinic, but a site that defendant used for the purpose of recruiting homeless Medicare and Medi-Cal beneficiaries for referral to three hospitals – City of Angels Hospital, Los Angeles Metropolitan Medical Center, and Tustin Hospital and Medical Center. Defendant and others working for him would recruit homeless beneficiaries for in-patient hospital admissions whether or not such hospitalizations were medically necessary.”
In relation to the tax evasion count, Mitts admits in the plea agreement that he failed to report more than $479,000 in income in 2005 and more than $620,000 in income in 2006. By failing to report this income, the Internal Revenue Service suffered losses of $349,857.
Mitts is the latest in a series of defendant to be sentenced in relation to the Skid Row investigation. For example, Robert Bourseau, one of the owners of City of Angels, was sentenced to 37 months in prison, and Dante Nicholson, the director of marketing at City of Angels, who also cooperated with the government in its investigation, was sentenced to one year in prison. Late last year, a doctor who admitted homeless patients to the Tustin Hospital and Medical Center after they had been driven from Skid Row was sentenced to one year in federal prison.
These cases are part of an investigation conducted by the U.S. Department of Health and Human Services, Office of Inspector General; the Federal Bureau of Investigation; IRS - Criminal Investigation; the California Department of Justice, Bureau of Medi-Cal Fraud and Elder Abuse; and the Health and Law Enforcement Team (HALT), a multi-agency task force which is operated by the Los Angeles County Health Department.
Anyone with information that could assist in the investigation of health care fraud schemes is encouraged to contact investigators with the Department of Health and Human Services by calling 1-800-HHS-TIPS, or emailing [email protected].
Release No. 13-107
Local Venture Capitalist Pleads Guilty to Tax ChargesRead the Press Release
St. Louis, MO – BURTON DOUGLAS MORRISS pled guilty to tax evasion charges associated with his evasion of taxes on millions of dollars of income he earned between 2006 and 2009. According to his plea agreement, the tax liability Morriss attempted to evade in 2007 was $2,888,483. The total tax due and owing by Morriss for all tax years is $5,559,386.
According to court documents, Morriss was a venture capitalist living in St. Louis County. Morriss admitted that, through his work, he was versed in tax laws. As a venture capitalist, he would discuss tax consequences of buying and selling investments to sophisticated investors. Moreover, he had been dealing with advisers and lawyers regarding his personal taxes for many years before 2006.
For the tax year 2007, which is the tax evasion count to which he pleaded guilty, Morriss earned substantial income from his venture capital activities. In order to reduce his tax liability for that year, he claimed $18,160,613 in losses associated with a number of entities, including Morriss Holdings, MIC Aircraft, Tech Aircraft and MIC Real Estate. These entities were established as single member limited liability companies for Morriss' mother. Additionally, Mrs. Morriss had already claimed these passive losses for her own benefit in previous years. In addition to these 2007 tax losses, Morriss admitted to evading millions more in taxes on income from his venture capital companies in subsequent tax years.
Morriss did not timely file tax returns for 2006, 2007, 2008 and 2009. On June 27,2011, Morriss filed the delinquent 2007 tax return that is the subject of the guilty plea, along with delinquent 2008 and 2009 tax returns.
Sybil A. Smith, the Special Agent in Charge of IRS-Criminal Investigation, stated, "To build faith in our nation's tax system, honest taxpayers need to be reassured that everyone is paying their fair share. IRS Criminal Investigation, together with the Department of Justice, will diligently investigate and prosecute those who knowingly violate our tax system for their own enrichment."
Morriss, Creve Coeur, MO, pled guilty to one felony count of tax evasion before United States District Judge Rodney Sippel. Sentencing has been set for November 22, 2013.
This charge carries a maximum penalty of five years in prison and/or fines up to $100,000. Restitution is mandatory. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
Morriss' plea comes shortly after a judgment of permanent injunction was ordered against him in the case of Securities and Exchange Commission v. Burton Douglas Morriss in the Eastern District of Missouri. On August 13, 2013, United States District Judge Carol E. Jackson ordered that Morriss, among other things, is prohibited from acting as an officer or director of certain companies issuing securities. The SEC matter was filed in 2012 in the wake of the collapse of the Acartha Group, LLC and other venture capital companies run by Morriss. The SEC complaint alleged that Morriss had fraudulently transferred millions of investor dollars to himself for personal use. In addition to the director/officer bar, the SEC will ask the Court to order disgorgement of ill-gotten gains and civil penalties at a future date.
In addition to the SEC, this case was investigated by Internal Revenue Service Criminal Investigation, the Federal Bureau of Investigation and the United States Postal Inspection Service. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Local Venture Capitalist Pleads Guilty to Tax ChargesRead the Press Release
St. Louis, MO – BURTON DOUGLAS MORRISS pled guilty to tax evasion charges associated with his evasion of taxes on millions of dollars of income he earned between 2006 and 2009. According to his plea agreement, the tax liability Morriss attempted to evade in 2007 was $2,888,483. The total tax due and owing by Morriss for all tax years is $5,559,386.
According to court documents, Morriss was a venture capitalist living in St. Louis County. Morriss admitted that, through his work, he was versed in tax laws. As a venture capitalist, he would discuss tax consequences of buying and selling investments to sophisticated investors. Moreover, he had been dealing with advisers and lawyers regarding his personal taxes for many years before 2006.
For the tax year 2007, which is the tax evasion count to which he pleaded guilty, Morriss earned substantial income from his venture capital activities. In order to reduce his tax liability for that year, he claimed $18,160,613 in losses associated with a number of entities, including Morriss Holdings, MIC Aircraft, Tech Aircraft and MIC Real Estate. These entities were established as single member limited liability companies for Morriss' mother. Additionally, Mrs. Morriss had already claimed these passive losses for her own benefit in previous years. In addition to these 2007 tax losses, Morriss admitted to evading millions more in taxes on income from his venture capital companies in subsequent tax years.
Morriss did not timely file tax returns for 2006, 2007, 2008 and 2009. On June 27,2011, Morriss filed the delinquent 2007 tax return that is the subject of the guilty plea, along with delinquent 2008 and 2009 tax returns.
Sybil A. Smith, the Special Agent in Charge of IRS-Criminal Investigation, stated, "To build faith in our nation's tax system, honest taxpayers need to be reassured that everyone is paying their fair share. IRS Criminal Investigation, together with the Department of Justice, will diligently investigate and prosecute those who knowingly violate our tax system for their own enrichment."
Morriss, Creve Coeur, MO, pled guilty to one felony count of tax evasion before United States District Judge Rodney Sippel. Sentencing has been set for November 22, 2013.
This charge carries a maximum penalty of five years in prison and/or fines up to $100,000. Restitution is mandatory. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
Morriss' plea comes shortly after a judgment of permanent injunction was ordered against him in the case of Securities and Exchange Commission v. Burton Douglas Morriss in the Eastern District of Missouri. On August 13, 2013, United States District Judge Carol E. Jackson ordered that Morriss, among other things, is prohibited from acting as an officer or director of certain companies issuing securities. The SEC matter was filed in 2012 in the wake of the collapse of the Acartha Group, LLC and other venture capital companies run by Morriss. The SEC complaint alleged that Morriss had fraudulently transferred millions of investor dollars to himself for personal use. In addition to the director/officer bar, the SEC will ask the Court to order disgorgement of ill-gotten gains and civil penalties at a future date.
In addition to the SEC, this case was investigated by Internal Revenue Service Criminal Investigation, the Federal Bureau of Investigation and the United States Postal Inspection Service. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
Kimberly Brooks Imprisoned for Embezzlement from Orleans EmployerRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Kimberley Brooks, 48, of Brownington, was sentenced today in United States District Court in Burlington to 18 months of imprisonment following her guilty plea to charges that she embezzled more than $157,000 from her employer. U.S. District Judge William K. Sessions III also ordered that Brooks serve a three-year term of supervised release after she gets out of prison, and that she pay restitution of about $163,000. The court directed Brooks to surrender to the Bureau of Prisons on October 8 to begin serving her sentence.
On October 18, 2012, a federal grand jury in Burlington returned a three-count indictment charging Brooks with wire fraud, interstate transportation of stolen money and forging checks of her former employer. According to the indictment, Brooks was employed as a bookkeeper for Desmarais Equipment, Inc., a farm equipment and recreational vehicle distributor in Orleans. The indictment alleges that, between September 2008 and March 2011, Brooks embezzled about $157,000 from the company, primarily by stealing cash from funds being deposited into the bank and altering deposit slips in an attempt to cover up the theft. It also accuses Brooks of causing several company checks to be issued to herself or others without authorization, then depositing the checks into her own personal account. According to court records, the embezzlement was detected in May 2011 and Brooks was promptly fired. Brooks pled guilty to the stolen property charge last April.This case was investigated by the Vermont State Police and the U.S. Secret Service.
Brooks is represented by David Sleigh. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Justice Department Sues South Dakota Drug Manufacturer for Improperly Producing Sterile Eye DropsRead the Press Release
The government filed suit in the U.S. District Court for South Dakota against Dakota Laboratories LLC and its owner, Charles L. Voellinger, Sr., to block them from violating the Food, Drug and Cosmetic Act (FDCA) in connection with their alleged violations of Current Good Manufacturing Practices (CGMP). The alleged violations concerned problems with the manufacture of eye drops that may have caused the products to be non-sterile. The Justice Department filed the suit on behalf of the Food and Drug Administration (FDA).
“Consumers must be able to trust that drugs presented as sterile are, in fact, sterile,” said Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division. “We cannot take the chance that a manufacturer’s failure to establish proper controls for sterile drug production could result in products becoming contaminated, placing consumers at risk of infection and potentially serious injury.”
In conjunction with the filing of the complaint, Dakota Laboratories agreed to settle the litigation and be bound by a Consent Decree of Permanent Injunction that prohibits them from committing violations of the FDCA. The consent decree also acknowledges that Dakota Laboratories is no longer in operation, and requires that if they wish to resume manufacturing drug products in the future, the FDA first must determine that Dakota Laboratories’ manufacturing practices have come into compliance with the law. The proposed consent decree, along with the complaint, has been filed with the court and is awaiting judicial approval.
The government’s action resulted from a series of inspections of Dakota Laboratories’ Mitchell, S. D., manufacturing facility, which revealed that Dakota Laboratories failed to establish and implement appropriate procedures for preventing microbiological contamination of drug products. They allegedly lacked sufficient control over the environment in their sterile processing area to prevent products from becoming contaminated and failed to establish and implement appropriate laboratory procedures for determining whether batches of eye drops conformed to their safety specifications.
Compliance with CGMP requirements ensures that drugs meet the safety requirements of the law and have the identity, strength, quality and purity that the drugs purport to possess. FDA regulations, which establish the minimum CGMP requirements applicable to human drugs, require manufacturers to control all aspects of the processes and procedures by which drugs are manufactured to prevent the production of unsafe and ineffective products.
After the inspections of Dakota Laboratories in 2010 and 2011, FDA warned them that their conduct violated the FDCA. In 2012, a third FDA inspection documented the continuing nature of Dakota Laboratories’ CGMP violations. Consequently, the government filed its complaint and settled with Dakota Laboratories.
The complaint was filed by the Department of Justice’s Consumer Protection Branch, Civil Division; the U.S. Attorney’s Office for the District of South Dakota and FDA’s Office of the General Counsel. A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
Judge Sentences Johnstown Woman for Falsifying Firearms FormsRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been sentenced in federal court to three years probation, the first eight months of which must be served by conditions of home confinement, on her conviction of making false statements to a federally licensed firearms dealer, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Kimberly G. Yarnavick, 48.
According to information presented to the court, on July 15, 2009, in conjunction with the purchase of a Hi Point pistol; on Feb. 5, 2010, in conjunction with the purchase of a Phoenix pistol; and on March 3, 2010, in conjunction with the purchase of a American Arms pistol, Yarnavick knowingly made false statements in an effort to deceive Sporting Goods Discounters, a federally licensed firearms dealer. Yarnavick represented she was the actual buyer of the firearms when, in fact, she was purchasing the firearms on behalf of another person.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Johnstown Police Department for the investigation leading to the successful prosecution of Yarnavick.
According to Mr. Hickton, Yarnavick was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Johnstown Man Distributed Panic Disorder DrugRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of distribution of a controlled substance, United States Attorney David J. Hickton announced today.
Nieves Calderon, III, 36, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on Nov. 19, 2012, Calderon distributed a quantity of alprazolam.
Judge Gibson scheduled sentencing for Jan. 9, 2014, at 11 a.m. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Calderon.
Indictment Unsealed Charging Three Midwest City Women with Conspiracy to Defraud OKC Schools Tutoring ProgramRead the Press Release
Oklahoma City, Oklahoma – A federal indictment was unsealed today charging three Midwest City women with conspiracy to defraud the U.S. Department of Education by making false claims for payment for tutoring sessions of students attending Oklahoma City Public Schools, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. The three women charged are REBECCA E. COTTON, 42, PATRICIA R. BURNS, 71, and BOBBIE J. DAILEY, 62, all from Midwest City, Oklahoma.
As part of the No Child Left Behind Act of 2001, the U.S. Department of Education provided funding for extracurricular tutoring to eligible students at eligible schools. Eligible schools were those designated by the state to be in need of improvement, and student eligibility was determined by family income. The Oklahoma City Public Schools District ("OKCPS") offered this tutoring program to eligible students at U.S. Grant High School and Roosevelt Middle School. OKCPS required tutoring providers to record student attendance at tutoring sessions on paper rosters and on a computer database which, in turn, was used to generate invoices that the tutoring providers submitted to OKCPS for payment.
It is alleged that during the 2009-2010 school year, Burns, with the assistance of her daughter, Cotton, owned and operated A Plus Academics, LLC ("A Plus"), a business providing academic tutoring to school children. It is alleged that during this same year, Cotton owned and operated Foundations Tutoring, LLC ("Foundations"), a business that also provided academic tutoring to school children. A Plus and Foundations shared office space at 608 Askew Drive, in Midwest City. For 2009-2010, both A Plus and Foundations were state-approved tutoring providers having contracts with OKCPS to provide tutoring services. A Plus primarily tutored students at U.S. Grant High School. Foundations primarily tutored students at Roosevelt Middle School. Both companies hired teachers at the respective schools as tutors. It is alleged that during the 2009-2010 school year Dailey was employed at U.S. Grant High School as a counselor and also as an A Plus tutor and "liaison" between A Plus and U.S. Grant High School.
The indictment alleges that during the 2009-2010 school year, Burns, Cotton, and Dailey instructed tutors at U.S. Grant High School to complete and sign student attendance rosters for tutoring sessions that did not, in fact, take place. It is alleged that Dailey herself completed and signed student attendance rosters for tutoring sessions that did not take place. It is alleged that Cotton and one of the employees of Foundations instructed tutors at Roosevelt Middle School to complete and sign attendance rosters for tutoring sessions that did not, in fact, take place.
It is further alleged that Cotton entered the false attendance information into the computer database used by OKCPS. Burns and Cotton allegedly used this false information to generate invoices, which were submitted to OKCPS for payment. For the 2009-2010 school year, OKCPS paid A Plus $884,548.13 and paid Foundations $351,621.00 for tutoring services.
The indictment alleges eight counts. Count 1 charges Cotton, Burns, and Dailey with conspiracy, for which each face up to five years in prison. Counts 2-4 charge Cotton, Burns, and Dailey with making false statements, for which each face up to five years in prison. Count 5 charges Cotton with making false statements, for which she faces up to five years in prison. Count 6 charges Cotton with wire fraud for which she faces up to 20 years in prison. Count 7 charges Cotton with money laundering for which she faces up to ten years in prison. Count 8 charges Cotton with aggravated identity theft for which she faces up to an additional mandatory two years in prison. All counts also include a potential fine of $250,000. The public is reminded that the indictment is merely an accusation and that the defendants are each presumed innocent unless and until proven guilty. Reference is made to the indictment for further information.
This case is the result of an investigation by the Internal Revenue Service Criminal Investigation, the U.S. Department of Education, and the Economic Crimes Task Force, and is being prosecuted by Assistant U.S. Attorneys Amanda Maxfield Green and Chris M. Stephens.
Husband and Wife Sentenced for Wire FraudRead the Press Release
Thirteen Sentenced to Date in Crestwood Homes Mortgage Fraud
BOISE – Aaron Michael Hymas and Tiffany Kim Hymas, both 38, of North Salt Lake, Utah, were sentenced in United States District Court in Boise today for wire fraud, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge sentenced Aaron Hymas to 24 months in prison followed by three years of supervised release and ordered him to pay $1,520,296.77 in restitution. Tiffany Hymas was sentenced to 60 days in prison followed by three years of supervised release, beginning with six months of home detention. She was also ordered to pay $667,505.42 in restitution. The two former Treasure Valley residents each pleaded guilty to one count of wire fraud on October 18, 2012.
According to the plea agreements, the defendants admitted that they schemed to defraud a lender by having Tiffany submit a residential loan application for $295,600, on March 28, 2007, in which she made material misrepresentations. On the application, Tiffany Hymas stated that she was employed by OPM Enterprises with 2.6 years on the job; that she had income and commissions of $72,500 per month; and that she had gross rental income of $14,600 per month from four properties in Meridian, Nampa and Boise. Based on these misrepresentations, Taylor, Bean and Whitaker Mortgage Corporation funded the loan. The defendants admitted they knew Tiffany Hymas’ statements were false and material to the loan application, and that they knew the statements were false at the time she made them.
The cases are part of a long-term investigation of mortgage fraud activity related to Crestwood Homes, which involved multiple defendants, many of them family members, who bought and sold real estate in order to “flip it,” or gain profits from the sales. The financial institutions and mortgage lenders incurred substantial losses on the loan transactions.
In addition to Aaron and Tiffany Hymas, eleven individuals have been sentenced since November 2010 on charges of wire fraud, bank fraud and making false statements, including Michael J. Hymas, Shane M. Hymas, Laurie K. Hymas, Shauntee K. Ferguson, Christopher R. Georgeson, Stanley J. Ferguson, Brent Bethers, Melody C. Redondo, Paul Redondo, Travis R. Hymas and Season Heather Hymas.
“False statements to banks and lenders in order to obtain home loans have undermined the integrity of our nation’s housing financing system,” said Olson. “These sentences send the strong message that those who fabricate financial information to deceive lenders will be investigated, prosecuted and punished.”
“Integrity and honesty in the financial world are critical to society,” said U.S. District Judge Edward J. Lodge.
The cases were investigated by the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation, with assistance provided by the Office of the United States Trustee and the Idaho Department of Insurance. The case is being prosecuted by the U.S. Attorney's Office for the District of Idaho and the State of Idaho, Office of the Attorney General.
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
High Stakes Dog Fighters and Gamblers Arrested 367 Fighting Pit Bulls SeizedRead the Press Release
Montgomery, Alabama - On Friday, August 23, 2013, the following people were arrested after being indicted for violations of the federal dog fighting statute and the federal gambling statute:
- Donnie Anderson—48 years old, of Auburn, Alabama
- Demontt Allen—37 years old, of Houston, Texas
- William Antone Edwards—42 years old, of Brantley, Alabama
- William Oneil Edwards—39 years old, of Elba, Alabama
- Robin Stinson—40 years old, of Elba, Alabama
- Michael Martin—54 years old, of Auburn, Alabama
- Lawrence Watford—35 years old, of Adel, Georgia
- Ricky Van Le—24 years old, of Biloxi, Mississippi
- David Sellers—52 years old, of Opelika, Alabama
- Sandy Brown—47 years old, Brownsville, Alabama
The 30 count federal indictment charges that between 2009 and 2013 the above individuals conspired to promote and sponsor dog fights, and conspired to possess, buy, sell, transport and deliver dogs that were involved in dog fighting. The indictment further charges individual defendants with promoting or sponsoring a dog fight and with possessing, buying, selling, transporting and delivering a dog for fighting purposes. Lastly, these defendants were charged with conducting an illegal gambling business.
On Friday, August 23, 2013, agents executed 13 search warrants, 11 in Alabama and two in Georgia. Agents seized 367 pit bull terriers that appeared as if they had been fought multiple times, guns, illegal narcotics, drugs used to treat and train dogs, and other evidence indicative of dog fighting. During the course of this investigation, agents also seized over $500,000 from dog fighters involved in this organization.
The U.S. Attorney’s Office, Auburn Police Division and the Federal Bureau of Investigation requested the assistance of the American Society for the Prevention of Cruelty to Animals and the Humane Society of the United States to help investigate the dog fighting and take custody of the dogs seized.
“These defendants were betting between $5,000 and $200,000 on one dog fight,” stated U.S. Attorney George L. Beck, Jr. “The number of dogs seized and the amount of money involved in this in case shows how extensive this underworld of dog fighting is. These dog fighters abuse, starve and kill their dogs for the supposed ‘fun’ of watching and gambling on a dog fight. Their behavior is deplorable, will not be tolerated, and will be punished to the full extent of the law.”
“The sheer number of dogs seized speaks volumes as to the inhumane and violent abuse of animals associated with the illegal practices of drug activity afflicting our communities,” stated Stephen Richardson, FBI Special Agent in Charge, Mobile Division.
“This is a great example of federal, state, and local agencies working together to make communities safer,” stated Paul Register, Auburn Police Division Chief. “It is not just about the egregious act of dog fighting itself, but the other criminal activity that is affiliated with it. It is important that local law enforcement, such as the Auburn Police Division, work together with other agencies to address crimes that affect the entire country.”
“We are committing to eradicating dog fighting in every dark corner where it festers,” said Wayne Pacelle, president and CEO of The HSUS. “This series of raids reminds every dogfighter that they are not beyond the law and their day of reckoning will come.”
“Today we ended the torture of hundreds of abused and neglected dogs,” said Matt Bershadker, president and CEO of the ASPCA. “Never again will these dogs be forced to fight, live in squalor, or be neglected and deprived of the bare necessities. The ASPCA is extremely grateful to federal and local authorities who pursued this widespread investigation for so long, and we are happy to lend our assistance.”
An indictment merely alleges that crimes have been committed and the defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face a maximum sentence of five years for conspiracy to fight dogs, a five year maximum sentence on each of the 15 dog fighting counts, a five year maximum for conducting a gambling business, and five year maximum on the 13 counts of using the telephone to promote gambling. The defendants are also subject to fines and a period of supervised release if convicted.
The case was investigated by the Auburn Police Division and the Federal Bureau of Investigation, with assistance from the Alabama Alcoholic Beverage Control Board; the Coffee County Sheriff’s Office; Alabama State Troopers; the Lee County District Attorney’s Office; the Alabama Department of Public Safety; Bainbridge, Georgia Department of Public Safety; Georgia Bureau of Investigation, Echols County Sheriff’s Office, the United States Marshals Service; the Lee County Sheriff’s Office; the Houston County Sheriff’s Office; the Opelika Police Department; the Georgia Highway Patrol; the Georgia Bureau of Investigation; the Mississippi Bureau of Investigation; the Pensacola, Florida and Columbus, Georgia offices of the Drug Enforcement Administration; and Taylor Crossing Animal Hospital. Assistant United States Attorney Clark Morris is prosecuting the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Gang Member Is Fifteenth to Plead Guilty in Dodge City Racketeering CaseRead the Press Release
WICHITA, KAN. – A Dodge City man has pleaded guilty to a charge of assault with a dangerous weapon in connection with a federal racketeering case, U.S. Attorney Barry Grissom said today.
Andrew Gusman, 21, Dodge City, Kan., pleaded guilty to assault with a dangerous weapon, which was a violent crime in aid of racketeering. In his plea, Gusman admitted that on March 30, 2011, he was with fellow Norteno gang members including co-defendants Alfonso Banda-Hernandez, Enrique Gobin and Jesus Sanchez. At a Love’s convenience store in Dodge City, they encountered George Gonzalez, who was a member of the rival Sureno gang. They threw gang signs at Gonzales and attempted to start a fight.
Later that day, they again encountered Gonzalez and began chasing his car. Gusman and Banda-Hernandez were in one car, and Gobin and Sanchez were in another car. During the case, Sanchez fired shots at Gonzalez. After the shooting, the four defendants met outside of town.
Sentencing is set for Nov. 18. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. Gusman was one of 23 Norteno members to be indicted in May 2012. It was only the second time a federal RICO Act indictment (Racketeer Influenced and Corrupt Organizations Act) had been filed in Kansas. Gusman is the fifteenth defendant in the case to enter a guilty plea.Grissom commended the Dodge City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ford County Sheriff’s Office, the Kansas Bureau of Investigation, Assistant Aaron Smith and Assistant U.S. Attorney Lanny Welch for their work on the case.
Four Brooklynites Sentenced in Counterfeiting CaperRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that four residents of Brooklyn, New York have recently been sentenced in United States District Court in Burlington following their guilty pleas to counterfeiting charges. Today, U.S. District Judge William K. Sessions III sentenced Lateek Cargo, 27, to timer served in prison, coupled with six months of home confinement. Earlier this month, Daniel Hyacinthe, 24, was also sentenced to time served, coupled with four months of home confinement. Also within the past several weeks, Larry Galbreith, 23 and Malik Delima, 22, were sentenced to 12 months plus one day in prison. The court ordered each defendant to serve a one-year term of supervised release and ordered the defendants together to pay restitution totalling $1000. Delima, who has been incarcerated since his arrest, is finishing his jail sentence. Galbreith was remanded to Marshals custody on the day he was sentenced.
According to court records, on the evening of October 18, 2012, South Burlington Police Officers encountered Hyacinthe, Delima and Cargo at a gas station on Shelburne Road in South Burlington after receiving reports from several businesses in the area that individuals in a car matching the description of the defendant’s vehicle had passed, or attempted to pass, counterfeit $100 bills. After reportedly obtaining consent to search the vehicle, officers found seven counterfeit $100 bills, receipts showing purchases earlier that day at Burlington-area stores that were paid for with $100 bills, and a color printer that had the capability of photocopying documents. The defendants allegedly made the counterfeit $100 bills by bleaching real $5 bills, then making a photo-reproduction of a $100 bill on the $5 bill paper stock.
According to court papers, officers learned that one of the defendants had been staying at a near-by motel. After they obtained a warrant to search the motel room, officers found 13 more counterfeit $100 bills and 28 bleached $5 bills. They also found Larry Galbreith in the motel room.
The defendants are represented to Federal Public Defender Michael Desautels; David Watts; Brooks McArthur; and Robert Behrens. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Former Wellington Resident Charged in Investment Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Drew J. Breakspear, Commissioner, Florida’s Office of Financial Regulation, announce the unsealing of an indictment charging George Louis Theodule, 52, former resident of Wellington, FL, with multiple counts of wire fraud, securities fraud and money laundering. Theodule was arrested on August 23, 2013 and had his initial appearance before U.S. Magistrate Judge Dave Brannon later that morning.
According to the indictment, Theodule engaged in an investment fraud or “Ponzi” scheme, wherein he induced individuals to invest money with his companies, Creative Capital Consortium and A Creative Capital Concepts, based upon the representation that he would be able to double their money in 90 days, primarily by trading in stock options. Theodule, the indictment alleges, targeted the Haitian community in South Florida and elsewhere, forming “investment clubs” which attracted thousands of investors between late 2007 and late 2008. In reality only a small portion of investors’ money was placed into trading accounts – which invariably were depleted without showing any gains whatsoever. Rather, substantial funds were used to repay earlier investors, creating the appearance of investment success, and other funds were used by the defendant for his personal benefit. The scheme unraveled in early 2009 when the Securities and Exchange Commission obtained a restraining order and later an injunction to stop the alleged unlawful practices. Investors ultimately lost tens of millions of dollars.
U.S. Attorney Wifredo A. Ferrer stated, “Ponzi schemes, affinity fraud schemes, and high-yield investment fraud scams such as this pose a serious threat to people. For years, George Louis Theodule lured members of the Haitian community to invest money with promises of high-yield returns. In reality, only a small amount of the money was invested, while a substantial portion was used to repay earlier investors, creating the appearance of investment success. Even worse, George Theodule was using their hard earned money for his own personal benefit. The U.S. Attorney’s Office stands committed to bring to justice those who seek to undermine faith in our investment markets.”
“This is a stark reminder that promises of large returns with little risk should immediately send up red flags and make investors run the other way,” said Michael B. Steinbach, Special Agent in Charge of FBI Miami. “Securities markets must be regulated and transparent so investors can continue to trust and have faith in the system. Proactive investigations allow the FBI to prevent losses to victims by identifying those involved and holding them accountable for their unscrupulous actions.”
“This case provides an egregious example of someone exploiting the trust of members of their own community. It demonstrates the Florida Office of Financial Regulation’s (OFR) commitment to work cooperatively in partnership with other state and federal agencies, such as the United States Attorney’s Office to identify and prosecute those who seek to violate that trust and act illegally for their own financial gain,” said OFR Commissioner Drew J. Breakspear. “The OFR is committed to protecting the citizens of Florida while providing smart, efficient and effective regulation of the financial services industry.”
If convicted, Theodule faces a possible statutory maximum sentence of up to 20 years in prison as to each count of wire fraud, and 10 years as to each count of securities fraud and money laundering.
Mr. Ferrer commended the investigative efforts of the FBI and the Florida Office of Financial Regulation. The case is being prosecuted by Assistant United States Attorneys Roger H. Stefin and Carolyn Bell.
An indictment is only an accusation and the defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Utah Chiropractor Sentenced to Prison for Tax EvasionRead the Press Release
The Justice Department and the Internal Revenue Service (IRS) announced that today Douglas R. Madsen, a former chiropractor from Ephraim, Utah, was sentenced by the U.S. District Judge Clark Waddoups to 33 months in prison and resitutition of over $500,000 following a conviction for attempted evasion of payment of income tax in the District of Utah.
On Jan. 12, 2012, a jury convicted Madsen of one count of tax evasion. According to court documents, Madsen owed approximately $1.3 million in assessed income tax, interest and penalties for the years 1995 and 1999 to 2004. Madsen’s tax debt had grown, by the trial date, to over $1.7 million, after accrued interest.
The evidence presented at trial established that Madsen used nominee trusts to conceal the ownership of numerous acres of property, ultimately causing the transfer of that property to Grand Scale Inc., a Washington state corporation of which he was the president, vice president, secretary, treasurer and chairman of the board. In addition, the evidence showed that Madsen used other entities to encumber property and cloud equity in that property through use of mortgages and Uniform Commercial Code financing statements. Madsen was previously held in civil contempt by the U.S. District Court for the District of Utah for failure to comply with court orders with respect to an IRS summons.
Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally commended the efforts of Tax Division Trial Attorneys Jennifer R. Laraia and Leslie A. Goemaat, who prosecuted the case, and special agents of IRS – Criminal Investigation, who investigated the case.
Former Police Officer and Co-Defendant Plead Guilty in Scheme to Pay BribeRead the Press Release
WICHITA, KAN. –A former officer of the Wichita Police Department and a co-defendant have pleaded guilty in a scheme to pay a bribe in an unsuccessful effort to keep the officer from losing her job, U.S. Attorney Barry Grissom said today.
Former officer Joletta Vallejo, 35, Wichita, Kan., and Patrick Melendrez, 40, Wichita, Kan., each pleaded guilty to one count of conspiracy to commit wire fraud. Vallejo was employed by the police department from Jan. 9, 2006, to Aug. 24, 2012. In her plea, she admitted that on Oct. 16, 2011, two citizens approached her to make a report they were victims of an aggravated robbery, aggravated kidnaping, aggravated battery and attempted first degree murder. Vallejo did not follow the police department’s policies in responding and filing their complaints.
As a result of her failure to follow department policies, Vallejo was investigated by the police department’s Professional Standards Bureau. When she was interviewed she lied to the investigators. When she became aware she was going to be fired, she and Melendrez devised a scheme to attempt to keep her job.
On Aug. 22, 2012, Vallejo created a Google Voice number in the name of co-defendant Melendrez. They used that number to call and text one of the citizens and offer him money to recant the statements he had made to police about Vallejo’s conduct. The citizen’s response was part of an undercover investigation.
Sentencing is set for Nov. 18. They face a maximum penalty of 20 years and a fine up to $250,000. Grissom commended the Wichita Police Department, the FBI and Assistant U.S. Attorney Debra Barnett for their work on the case.
Former Owner of Los Angeles Medical Equipment Supply Company Pleads Guilty to $2.6 Million Medicare Fraud SchemeRead the Press Release
A former owner of a Los Angeles-area medical equipment supply company pleaded guilty today to a $2.6 million Medicare fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney André Birotte Jr. of the Central District of California; Special Agent in Charge Glenn R. Ferry of the Los Angeles Region of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG); and Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office made the announcement.
Akinola Afolabi, 54, of Long Beach, Calif., pleaded guilty before U.S. District Judge Philip S. Gutierrez in the Central District of California to one count of health care fraud.
According to court documents, Afolabi was the owner and president of Emmanuel Medical Supply, a durable medical equipment (DME) supply company located in Long Beach. Afolabi admitted that from approximately June 2006 through September 2009, he engaged in a scheme to commit health care fraud through the operation of Emmanuel by providing medically unnecessary power wheelchairs and other DME to Medicare beneficiaries and by submitting false and fraudulent claims to Medicare. Afolabi admitted that he obtained Medicare beneficiary information through various means, including “marketers,” whom he paid to refer Medicare beneficiaries to Emmanuel for the purpose of using that information to submit, and cause the submission of, false and fraudulent claims to Medicare on behalf of Emmanuel. Afolabi admitted knowing that the prescriptions and medical documents were fraudulent and that some of the beneficiaries did not receive the DME, yet he certified to Medicare with the submission of each claim that the DME was received and was medically necessary.
From approximately June 7, 2006, through Sept. 28, 2009, Afolabi, through Emmanuel, submitted approximately $2,668,384 in fraudulent claims to Medicare for power wheelchairs and related services, and Medicare paid Emmanuel approximately $1,490,532 on those claims.
At sentencing, scheduled for Nov. 25, 2013, Afolabi faces a maximum penalty of 10 years in prison and a $250,000 fine.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. This case is being prosecuted by Trial Attorney Fred Medick of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Former Flight Attendant Pleads Guilty to Making False Bomb ThreatsRead the Press Release
LOS ANGELES – A German national who used to work for United Airlines pleaded guilty this morning to making false bomb threats against flights operated by the international air carrier.
Patrick Cau, who is also known as Patrick Kaiser, 40, who recently relocated to Dallas from Los Angeles, pleaded guilty today to one count of false information and hoaxes.
Cau pleaded guilty before United States District Judge Otis D. Wright II, who is scheduled to sentence the defendant on November 18. At sentencing, Cau faces a statutory maximum penalty of five years in federal prison.
While Cau pleaded guilty to one felony count, in a plea agreement filed in federal court earlier this month, he admitted making eight bomb threats to United from October 2012 through January 2013.
In the first phone call, on October 4, 2012, Cau used a pay phone near his home to call an internal United crew-scheduling number and state that a United flight from London to Los Angeles would be bombed later that day. The subsequent calls were made from pay phones in Los Angeles, New York City, Las Vegas and Seattle to 911, with all of the calls stating that a specific United flight would be bombed.
As a result of the hoaxes, multiple law enforcement agencies were forced to respond to the bomb threats made by Cau. These law enforcement responses included evacuating people from the targeted airplanes; towing the aircraft to a safe area; searching and re-screening all ticketed passengers, baggage and cargo; and searching the aircraft by human, canine and other detection methods.
As a direct result of Cau’s threats, United experienced substantial disruption to its business operations and services, including cancellation of and delays to flights, transfer of aircraft, and significant inconveniences to United passengers. As a result of his actions, Cau has agreed to pay $267,912 in restitution to United. Cau is also expected to be ordered at sentencing to pay an as-yet-undetermined amount of restitution to law enforcement agencies that responded to the bomb threats.
The case against Cau was investigated by the Federal Bureau of Investigation; U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Los Angeles Airport Police.
Release No. 13-108
Former Employee of Financial Brokerage Pleads Guilty to Fraud and Identity TheftRead the Press Release
A former employee of a financial brokerage firm who stole the identity of a client and fraudulently obtained over $36,000 from that client, pled guilty today in federal court in Cedar Rapids.
Teresa Dorenkamp, 42, from Mason City, Iowa, pled guilty to one count of wire fraud and one count of aggravated identity theft.
In a plea agreement, Dorenkamp admitted that, while employed by a financial brokerage in Mason City, Iowa, she fraudulently obtained money from the firm’s clients by falsely depositing money belonging to the clients into Dorenkamp’s or her husband’s bank accounts. Dorenkamp admitted one such false deposit occurred on June 3, 2011, when Dorenkamp had $36,139.60 wire transferred from the client’s investment account into Dorenkamp’s own U.S. Bank account. Dorenkamp further admitted she used the name of and forged the signature of the client in order to complete the false deposit. Dorenkamp further admitted she caused $391,725.31in fraudulent transfers to be made from client accounts into her or her husband’s bank accounts from 2007 through 2011.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Dorenkamp was released on conditions pending sentencing. Dorenkamp faces a mandatory minimum sentence of 2 years’ imprisonment and a possible maximum sentence of 22 years’ imprisonment, a fine equal to the greater of twice the loss caused by her offense, twice the gain caused by her offense, or $500,000, $200 in special assessments, and 4 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Federal Bureau of Investigation and the Mason City Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-CR-03032.
Former Alabama Postal Employee Pleads Guilty for His Involvement in a Fraudulent Tax Refund SchemeRead the Press Release
Antoine Green, a former U.S. Postal Service (USPS) employee, pleaded guilty today in U.S. District Court for the Middle District of Alabama to crimes related to his involvement in a stolen identity tax refund fraud scheme, the Justice Department announced.
According to court documents, between November 2011 and October 2012, Green, who was employed as a postal carrier with the USPS in Montgomery, Ala., stole at least 61 U.S. Treasury tax refund checks from his mail route. The checks, which totaled approximately $145,952, were issued by the Internal Revenue Service (IRS) in connection with fraudulent tax returns filed in the names of identity theft victims.
For his involvement in the scheme, Green pleaded guilty to one count of theft of government money and one count of theft of mail by a postal employee. He faces a maximum potential sentence of 15 years in prison and a fine of up to $500,000.
Trial Attorneys Chad Edgar and Michael Boteler of the Justice Department’s Tax Division prosecuted the case. Special Agents of IRS - Criminal Investigation and USPS Office of Inspector General conducted the investigation.
Related Materials:
United States v. Antoine Green
Plea Agreement
InformationEast Elmhurst Man Pleads Guilty to Hiding $3.2 Million from the Internal Revenue Service in Foreign Bank AccountsRead the Press Release
Earlier today at the federal courthouse in Central Islip, New York, Mohanbhai Ramchandani, of East Elmhurst, New York, pled guilty to violating the United States Treasury Department’s Foreign Bank and Financial Accounts Report law (FBAR) and filing false tax returns to conceal $3.2 million that he earned from his Manhattan-based tailoring business – Mohan’s Custom Tailors. According to court filings and facts presented during the plea proceeding, Ramchandani admitted the illegal activity and cooperated with Internal Revenue Service (IRS) agents after being confronted with the evidence against him.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Toni Weirauch, Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation, New York.
Ramchandani built a successful business that made millions. Rather than live up to his financial responsibilities, he sought to conceal in foreign banks $3.2 million of income clearly earned in the United States. Ramchandani tried to evade not just lawful tax reporting obligations but also the laws that protect our economy,” stated United States Attorney Lynch. “Ramchandani not only grossly underreported his true income, he completely underestimated the tenacity of the IRS to ‘follow the money’.”
IRS Special Agent-in-Charge Weirauch stated, “Offshore tax enforcement is a major priority for the Internal Revenue Service. Individuals who chose to hide income outside of the United States expose themselves to a variety of criminal charges, including criminal tax and FBAR violations, and severe penalties. As we continue to gain access to more and more information about individuals involved in offshore tax evasion, potential violators can expect us to use all of our enforcement tools to stop this abuse.”
The government’s investigation revealed that Ramchandani operated a lucrative custom tailoring business specializing in the manufacturing of suits and shirts. Customers paid for their purchases with cash, checks and credit cards, including American Express. Ramchandani sent checks that American Express issued to him for payment of his customers’ purchases to the Bank of India in Hong Kong where he held an account. He then transferred those proceeds to an account held at the same bank in his son’s name, as well as to other banks in India and Canada. Between 2007 and 2009, Ramchandani hid $3.2 million in the foreign bank accounts and, in violation of FBAR laws, failed to report that he had money in those accounts. Ramchandani also filed tax returns that failed to include the money that he sent overseas. The tax loss to the IRS for 2007, 2008 and 2009 was $736,002.00.
Today’s guilty plea took place before United States District Judge Joseph F. Bianco. When sentenced, Ramchandani faces up to five years in prison, a penalty of $1.6 million for the FBAR violation and restitution to the IRS of $736,002.00 for unpaid taxes.
The government’s case is being prosecuted by Assistant United States Attorney Demetri M. Jones.
The Defendants
MOHANBHAI RAMCHANDANI
Age: 66Dickinson Man Sentenced for Possession of Child PornographyRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on Aug. 26, 2013, David Fugere, 55, Dickinson, N.D., pleaded guilty and was sentenced by U.S. District Judge Daniel L. Hovland on a charge of possession of materials depicting the sexual exploitation of a minor.
Judge Hovland sentenced Fugere to serve one year and four months in federal prison, to be followed by three years of supervised release. Fugere was ordered to pay a $100 special assessment to the Crime Victim’s Fund. Fugere was also ordered to register as a sex offender.
From November 2001 until about October 2003, Fugere possessed 23 visual depictions of a minor engaging in sexually explicit conduct.
This investigation was conducted by the North Dakota Internet Crimes Against Children Task Force and was a cooperative effort of Homeland Security Investigations, the North Dakota Bureau of Criminal Investigation, and the Dickinson Police Department.
This case was brought as a 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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Assistant U.S. Attorney Gary Delorme prosecuted the case.
Craig Doctor Arrested for Prescribing Drugs Resulting in Patient Deaths and Heath Care Fraud SchemeRead the Press Release
Click here for a copy of the indictment charging Dr. Joel Miller
DENVER – Joel E. Miller, age 55, of Craig, Colorado, was arrested without incident today on charges of health care fraud, money laundering and distributing/dispensing controlled substances, federal and state authorities announced. Miller was indicted by federal grand jury in Denver on August 21, 2013, which remained under seal until his arrest and first court appearance. Miller was arrested without incident in Steamboat Springs, Colorado. He made his initial appearance this afternoon before a U.S. Magistrate Judge in Grand Junction, where he was advised of his rights and the charges pending against him.
According to the indictment, Miller was a licensed physician in the state of Colorado and obtained Doctor of Osteopathic Medicine (D.O.) degree in 1990. He was licensed to practice medicine in Colorado in 1994. In 2003 he practiced medicine in Moffat County, Colorado and in 2008, Miller opened a solo private medical practice located in Craig, Colorado. The legal name of his business was DODXRX, doing business as High Country Medical.
In September 2009, the State of Colorado Board of Medical Examiners (“Board”) entered a Stipulation and Final Agency Order in which the Board issued a Letter of Admonition against Miller based upon findings he mis-prescribed neuropsychiatric medications to certain patients. The Board ordered Miller, among other things, to attend a continuing medical education course “in the area of prescribing” and provide proof of completion of such a course. In March of 2011, Miller sent a letter to the Board acknowledging completion of the ordered course.
Approximately between May 2008 and September 2012, Miller executed and attempted to execute a scheme to defraud health care benefit programs, namely Medicaid, Medicare, and commercial health care plans. Particularly, Miller prescribed controlled substances to patients without determining a sufficient medical necessity for the prescription of controlled substances; prescribed controlled substances to patients in a manner which was inconsistent with the usual course of professional practice and for other than legitimate medical purpose; and prescribed pharmaceuticals to patients for whom the prescription was not intended, and directed the persons to whom he prescribed the pharmaceuticals to give the prescription to third parties.
Furthermore, Miller prescribed controlled substances in quantities and dosages that would cause patients to abuse, misuse, and become addicted to the controlled substances. He also pre-signed prescriptions and allowed office employees to distribute controlled substance prescriptions to patients in his absence and without a doctor’s examination of the patient. According to the indictment, in August of 2010, Miller dispensed and distributed to a patient hydrocodone (Schedule III controlled substance), alprazolam and clonazepam, (both Schedule IV controlled substances) which resulted in the death of the patient. The indictment also alleges that in May 2012, Miller dispensed and distributed to a patient hydrocodone (Schedule III controlled substance), and diazepam (a Schedule IV controlled substance) which also resulted in death.
“Defrauding our health care system, causing the cost of care to increase is one thing,” said U.S. Attorney John Walsh. “It is quite another when a doctor over prescribes prescription medication that, as alleged in this case, causes patients to be addicted, and in two cases here, die.”
"Dr. Joel E. Miller's over prescribing and distribution of licit drugs is no different than the drug traffickers that DEA targets," said Drug Enforcement Administration Denver Special Agent in Charge Barbra Roach. "Dr. Miller destroyed the life of at least two patients, has hurt many other patients and disguised his drug dealing by conducting those activities in his professional office and while wearing a doctor's coat. DEA will continue to target "drug dealers" no matter their social or professional status."
"Crimes like this are motivated purely by greed and the patients are the real victims in this case," said Stephen Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office. "Prescription drug abuse is a serious problem and we are committed to investigate along with our law enforcement partners those individuals who are responsible for the illegal distribution of prescription medicine."
“Many people in Moffat County were directly negatively affected by the actions of Dr. Miller,” said Moffat County Sheriff Tim Jantz. “Some in our community were caused great harm and pain, which will never go away for those families. Hopefully this arrest and indictment will bring some closure to those affected by his actions.”
Miller was charged with thirty four counts as follows; one count of health care fraud with death resulting, which carries a penalty of life in prison, and up to a $250,000 fine; eight counts of health care fraud, which carries a penalty of not more than 10 years in federal prison, and a fine of up to $250,000 per count; ten counts of money laundering, which carries a penalty of not more than 20 years in federal prison, and a fine of up to $500,000 or twice the value of the property involved, per count; two counts of dispensing of controlled substances resulting in death, which carries a penalty of not less than 20 years, and up to life in federal prison, and up to a $1,000,000 fine; seven counts of dispensing of controlled substances, which carries a penalty of not more than 20 years in federal prison, and up to a $1,000,000 fine; dispensing of controlled substances, which carries a penalty of not more than 10 years in federal prison, and up to a $250,000 fine; one count of dispensing a controlled substance, which carries a penalty of not more than 10 years in federal prison, and up to a $500,000 fine; and one count of furnishing false and fraudulent material information, which carries a penalty of not more than 4 years in federal prison, and up to a $250,000 fine. The indictment also includes an asset forfeiture allegation.
This case was investigated by agents with the Drug Enforcement Administration (DEA) and IRS Criminal Investigation with the assistance of the Moffat County Sheriff’s Office and the Colorado Attorney General's Office. The case is being prosecuted by Assistant U.S. Attorney Michelle M. Heldmyer.
The charges contained in the indictment are allegations, and the defendant is presumed innocent until proven guilty.
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Cedar Rapids Man Charged with Unlawfully Possessing A Firearm and AmmunitionRead the Press Release
Matthew James Stover, 30, of Jacolyn Drive in Cedar Rapids, Iowa, has been charged by an indictment filed in the United States District Court in the Northern District of Iowa, with unlawfully possessing a .223 caliber Bushmaster rifle and numerous rounds of ammunition as an unlawful user of controlled substances.
Stover was arrested by the Cedar Rapids Police Department without incident at his home today on the indictment that had been sealed pending his arrest.
Stover appeared in federal court in Cedar Rapids today and pleaded not guilty to the indictment. Stover was ordered released on conditions, including that he submit to GPS monitoring and be detained in his home, pending his reporting for inpatient drug and mental health treatment in Minnesota on Thursday.
If convicted on the pending indictment, Stover could be incarcerated for up to 10 years, without the possibility of parole; fined up to $250,000; and required to serve a term of supervised release of up to 3 years.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Richard L. Murphy. The case has been investigated by the Cedar Rapids Police Department and the FBI’s Safe Streets Task Force.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-mj-00068 LRR.
Canadian Man Found Guilty of Importing 147,000 Estasy Pills from Canada into the United StatesRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Osborne Young, 47, of Richmond Hill, Ontario, Canada, was convicted following a jury trial before U.S. District Judge Richard J. Arcara of importing approximately 147,000 pills containing Benzylpiperazine, commonly referred to as Ecstasy, into the United States from Canada. This was one of the largest seizures ever of illegal pills at the border. The charge carries a penalty of up to 20 years in prison, a fine of $1,000,000, or both.
According to Special Assistant U.S. Attorney Fauzia K. Mattingly and Assistant U.S. Mary Catherine Baumgarten, who handled the prosecution of the case at trial, the defendant was driving his tractor trailer and attempted to enter the United States from Canada at the Lewiston Bridge Port of Entry in April 2012. After being pulled over for secondary inspection, Customs and Border Protection Officers discovered approximately 147,000 Ecstasy pills concealed in the refrigeration unit of the tractor trailer. The estimated value of the pills was at least $1,500,000.
The verdict is the result of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero and U.S. Customs and Border Protection, under the direction of
Sentencing is scheduled for January 24, 2014 at 1:00 p.m. before Judge Arcara.
Director of Field Operations James Engleman.Cabot Man Has Initial Appearance in Federal Court on Child Pornography ChargesRead the Press Release
Little Rock - Christopher R. Thyer, Attorney for the Eastern District of Arkansas and Randall C. Coleman, Special Agent in Charge of the Federal Bureau of Investigation - Little Rock Field Office announced that Matthew Hiner, age 25, of Cabot, made his initial appearance today in federal court in front of United States Magistrate Judge H. David Young on allegations of possession of child pornography, distribution of child pornography, and production of child pornography. Hiner was arrested on a criminal Complaint, Friday, August 23, 2013. He continues to be detained following his initial appearance today.
“This office is deeply committed to the prosecution of those who destroy the innocence of children for their own aberrant gratification,” stated Thyer. “We are fortunate to have well-trained investigators bring the evidence necessary to make our cases. This evidence allows our dedicated team of Assistant United States Attorneys to prosecute these difficult cases and imprison those who threaten the safety and security of our children.”
"Our Denied Innocence Task Force is a coalition of federal, state, and local officers who are dedicated to stopping those who prey on children," stated Coleman. "We will continue to work together to proactively investigate child sexual predators including producers and distributors of child pornography."
The criminal Complaint alleges on August 22, 2013, an Undercover (UC) Officer from the FBI/MPD Child Exploitation Task Force, operating out of a satellite office in Washington, D.C., was online in a public chat room and began chatting with username “daddylooking4fam”. Username daddylooking4fam posted he was single, 25 years old, active bi, and living in the United States.”
The UC engaged in a private chat conversation with daddylooking4fam. Daddylooking4fam told the UC that he was “looking for a like-minded family to merge with and raise a very loving and active family with.” Daddylooking4fam then asked the UC to chat on a private Yahoo! chat. During the subsequent chat with the UC, the user utilized the screen name “Matthew Hiner.” Hiner sent the UC photographs of himself engaging in sexually explicit conduct with a minor.
Agents with the FBI Office in Little Rock, Arkansas, determined Matthew Hiner’s identity. Hiner was located and arrested on the criminal Complaint.
The investigation was conducted by the Federal Bureau of Investigation with assistance from the Pulaski County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Kristin Bryant.
The charges set forth in a Complaint are merely allegations. A federal Grand Jury will decide whether to indict on these charges. The defendant is presumed innocent until proven guilty.