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Tuesday 9 July 2013
Leader of Whatcom County Drug Ring Sentenced to 20 Years in PrisonRead the Press Release
A Whatcom County man who ran a drug distribution network was sentenced today to 20 years in federal prison, announced U.S. Attorney Jenny A. Durkan. TODD HAMILTON, 36, of Bellingham ran the area’s most widespread and prolific drug trafficking organization using violence and threats of violence to impose his will. At sentencing U.S. District Judge John C. Coughenour said the community should be grateful HAMILTON is off the street. “Bellingham is one of the most pleasant and beautiful communities on the West Coast… Society cannot tolerate (Hamilton’s) cavalier attitude toward the rule of law.”
“This defendant has been a source of crime and violence in Whatcom County for far too long,” said U.S. Attorney Jenny A. Durkan. “I commend the good partnership between the Whatcom County Sheriff’s Office, the Bellingham Police Department, the Skagit County Sheriff’s Office and state and federal law enforcement to remove this scourge from the community and shut down his criminal organization.”
According to the plea agreement and other records filed in the case, upon his January 2011 release from Washington State prison, HAMILTON began running a heroin and methamphetamine distribution ring operating in Whatcom County. During a court authorized wiretap investigation, law enforcement learned HAMILTON purchased significant quantities of methamphetamine and heroin from his Olympia, Washington based supplier and had it transported to the Bellingham area for further distribution. When HAMILTON’s home was searched in December 2011, investigators found meth and heroin, drug ledgers and packaging materials. They also found a loaded Cobra Enterprise, Inc.45 caliber pistol.
During the investigation, DEA agents learned that HAMILTON purchased several pounds of methamphetamine and heroin each week, spending tens of thousands of dollars to redistribute the drugs in his community for profit. The investigation also revealed that HAMILTON had recruited an employee of the Department of Corrections (DOC) to assist him with his drug trafficking. The employee, also charged and convicted in this conspiracy, used his access to a Department of Corrections computer to determine whether law enforcement was investigating HAMILTON. He no longer works for the DOC.HAMILTON pleaded guilty to conspiracy to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime on April 1, 2013.
In asking for a 21-year sentence, prosecutors noted that the full extent of HAMILTON’s violence reign may never be known. “Defendant made tens, if not hundreds, of thousands of dollars off the backs of drug addicts in the Bellingham community. His brazen and prolific drug dealing was only matched by his reputation for violence. The wiretap revealed that Defendant was willing to assault the vulnerable people who were addicted to his poisons. Defendant armed himself with a firearm to ensure that he was invincible. What is unknown is how many people…. suffered from Defendant’s violence without reporting it to authorities precisely because they were both afraid of Defendant and feared police attention,” prosecutors wrote in their sentencing memo.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved, and was investigated and prosecuted pursuant to the United States Attorney’s Northwest Washington Hot Spot Initiative. The case was investigated by the Drug Enforcement Administration, the Washington State Patrol, the Washington State Department of Corrections, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Skagit County Interlocal Drug Enforcement Unit (SCIDEU) and the Northwest Regional Drug Task Force.
The case was prosecuted by Assistant United States Attorneys Jill Otake and Roger Rogoff.
Lawrence County Man Sentenced to 19+ Years in Prison for Child Exploitation CrimesRead the Press Release
PITTSBURGH, Pa. - A Lawrence County man has been sentenced in federal court to 235 months in prison, followed by lifetime supervised release, on his conviction of child exploitation crimes, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Patrick Joseph Kofalt, 56. According to information presented to the court, on or about Dec. 2, 2009, Kofalt received, possessed and accessed material depicting the sexual exploitation of a minor. Judge Fischer specifically found credible the accounts of vulnerable child victims who reported years of sexual offending by Kofalt and found Kofalt to be a serious threat to children.
Assistant United States Attorney Soo C. Song prosecuted this case on behalf of the government. In connection with the sentencing, Ms. Song presented evidence that disclosures by a six-year-old child in 2009 prompted the seizure of more than 1,000 images of child pornography which had been carefully encrypted and saved by Kofalt in computer files. Three additional sexual assault victims of Kofalt were eventually identified by law enforcement.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, together with the Pennsylvania State Police, for the investigation leading to the successful prosecution on Kofalt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Kansas City Woman Sentenced in Health Care Fraud CaseRead the Press Release
United States Attorney Deborah R. Gilg announced that Annette Crawley, also known as Kenya Sade Bryant, age 37 and formerly of Liberty, Missouri, was sentenced today in Lincoln, Nebraska, to 4 years in prison by United States District Judge Lyle E. Strom, for health care fraud and false claims. After completion of her prison sentence, Ms. Crawley will serve a 3 year term of supervised release.
Beginning in October, 2011, Ms. Crawley, using the name Kenya Sade Bryant, worked for Beneficial Behavioral Services (BBS) in Omaha, Nebraska. She falsely claimed to be a lawfully licensed psychologist and was hired to perform psychological services. While employed at BBS, she also obtained a Medicaid provider number from the state of Nebraska, and knew that Nebraska Medicaid would pay BBS for some of the examinations she conducted with Medicaid patients.
From December, 2011, through July, 2012, Ms. Crawley, again using the name Kenya Sade Bryant, worked for Capstone Behavioral Services in Omaha, Nebraska, by falsely claiming to be a lawfully licensed psychologist. Capstone conducted psychological evaluations for the United States Social Security Administration (SSA) of individuals seeking certain kinds of benefits. It is the policy of the SSA to only pay for evaluations performed by lawfully licensed psychologists. Ms. Crawley conducted evaluations and submitted paperwork to Capstone, which in turn, caused Capstone to submit a claim to the SSA. Ultimately, Crawley conducted a total of 220 such examinations for which the SSA paid a total of $40,442. The SSA also paid a total of $3,075 for examinations which didn’t take place because the person to be examined cancelled or failed to show up.
Additionally, between approximately December 2011 and January 2012, Ms. Crawley, again using the name Kenya Sade Bryant, worked for Behavioral Health Specialists (BHS), Norfolk, Nebraska, by falsely claiming to be a lawfully licensed psychologist. During this time period she conducted 38 psychological examinations of approximately 20 patients, most of whom were Region IV patients. The Nebraska Department of Health & Human Services provides mental health services statewide, and Norfolk is in Region IV. The state of Nebraska paid BHS $2,792.48 for the services provided to the Region IV patients. Ten of the patients seen by Crawley paid a total of approximately $186 of their own money to cover a portion of their examinations.
BHS is the local community health center for the Norfolk area of the state and its patients are described as a vulnerable, fragile population. Eleven of the patients seen by Crawley were intensive outpatient patients in an addiction service. Patients seen by Crawley were diagnosed with a variety of mental health disorders, including: impulse control disorders, depressive disorders, anxiety, alcoholism, drug dependence, bipolar disorder, child physical abuse, transient organic psychotic condition (depressive type), major depressive disorder (recurrent episodes), agoraphobia with panic disorder, and attention deficit disorder with hyperactivity.
Crawley committed her crimes through a variety of sophisticated means and was able to successfully pass herself off as a psychologist in a variety of circumstances to a variety of people. Crawley had a criminal history, and a professional disciplinary action was on file against her in Missouri under her true name. To circumvent being tracked when applying for a new license, she created a new identity – Kenya Sade Jessica Bryant - which she used to obtain a Nebraska license and to obtain employment. In order to construct this new identity Crawley created and used a variety of false ‘official’ documents, such as a birth certificate, educational transcripts and college degrees.
In June of 2011, she applied for and obtained a name change with the Social Security Administration. She kept the same social security number but her name changed from Annette Crawley to Kenya Sade Jessica Bryant. To accomplish the name change, she provided the SSA a fictitious document, purporting to be a court order from the Superior Court of California, which falsely represented that she had legally changed her name from Crawley to Bryant.
This case was investigated by the Office of Inspector General for Health and Human Services, the Social Security Administration and the Medicaid Fraud and Patient Abuse Unit of the Nebraska Attorney General’s Office.
Justice Department Releases Investigative Findings on the City of Miami Police Department and Officer-involved ShootingsRead the Press Release
Following a comprehensive investigation, the Justice Department today released its letter of findings determining that the city of Miami Police Department (MPD) has engaged in a pattern or practice of excessive use of force through officer-involved shootings in violation of the Fourth Amendment of the Constitution. Between 2008 and 2011, officers intentionally shot at individuals on 33 separate occasions, three of which MPD itself found unjustified. The department found that a number of MPD practices, including deficient tactics, improper actions by specialized units, as well as egregious delays and substantive deficiencies in deadly force investigations, contributed to the pattern or practice of excessive force.
The department's findings noted that MPD did not provide close supervision or hold individuals accountable for their actions by failing to complete thorough, objective and timely investigations of officer-involved shootings. For a significant number of the shootings, including one that occurred in 2008, MPD has not reached a conclusion internally as to whether or not the officer’s firearm discharge was lawful and within policy. The Justice Department found that MPD’s failure to complete timely and thorough investigations of officer-involved shootings undermined accountability and exposed MPD officers and the community to unreasonable risks that might have been addressed through prompt corrective action, noting that several investigations remained open for more than three years. Significantly, a small number of officers were involved in a disproportionate number of shootings, while the investigations into their shootings continued to be egregiously delayed. The findings released today mark the conclusion of the department’s second investigation of MPD in recent years. The department noted that similar deficiencies were found in its previous investigation that began in 2002.
“Although MPD appeared to correct course after our first investigation, many of the systemic problems that we previously identified returned to root deeply in MPD’s practices. Our findings should serve as a catalyst to help MPD and the city of Miami restore the community’s confidence in fair, effective and accountable law enforcement,” said Roy L. Austin Jr, Deputy Assistant Attorney General for the Civil Rights Division. “We look forward to collaborating with Chief Orosa, Mayor Regalado and the people of Miami to create and implement a comprehensive, court-enforceable plan to ensure sustainable reform.”
Wifredo Ferrer, U.S. Attorney for the Southern District of Florida stated, “In November 2011, the Civil Rights Division of the Department of Justicebegan a formal investigation to determine whether the city of Miami Police Department had engaged in a pattern or practice of excessive use of deadly force by firearms. After a careful and thorough review of the facts and circumstances surrounding a series of police-involved shootings, the Civil Rights Division found that the police department in fact engaged in such prohibited conduct. Today, we are releasing the detailed findings of the investigation, with the dual goal of shining a light on past wrongs and – more importantly – setting a clear course for the future that will assure the residents of the city of Miami that this type of behavior will not be repeated in our city. We commend Chief Orosa for recognizing some of the problems the Civil Rights Division found and for pursuing initiatives to address them. We are confident that the findings and recommendations will be heeded, and will result in institutional long-term reform that will make our city and police force better than ever.”
The department’s investigation involved an in-depth review of thousands of documents, including written policies and procedures, training materials, and internal reports, photographs, video and audio recordings and investigative files. The review benefited from productive dialogue with MPD supervisors and officers, city of Miami officials, the Office of the State Attorney, the Civilian Investigative Panel, and members of the Miami community. The Justice Department provided feedback to MPD during the investigation and commends Chief Manuel Orosa for taking steps to address some of the deficiencies identified since the investigation began.
The investigation was conducted by the Special Litigation Section of the Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the Southern District of Florida, with the assistance of an experienced law enforcement expert, pursuant to the pattern or practice provision of the Violent Crime Control and Law Enforcement Act of 1994. The findings letter will be available on the department’s website at http://www.justice.gov/crt/about/spl/ . The department welcomes comments or concerns from the community via email at [email protected] .
Justice Department Releases Investigative Findings on the City of Miami Police Department and Officer-Involved ShootingsRead the Press Release
WASHINGTON – Following a comprehensive investigation, the Justice Department today released its letter of findings determining that the city of Miami Police Department (MPD) has engaged in a pattern or practice of excessive use of force through officer-involved shootings in violation of the Fourth Amendment of the Constitution. Between 2008 and 2011, officers intentionally shot at individuals on 33 separate occasions, three of which MPD itself found unjustified. The department found that a number of MPD practices, including deficient tactics, improper actions by specialized units, as well as egregious delays and substantive deficiencies in deadly force investigations, contributed to the pattern or practice of excessive force.
The department's findings noted that MPD did not provide close supervision or hold individuals accountable for their actions by failing to complete thorough, objective and timely investigations of officer-involved shootings. For a significant number of the shootings, including one that occurred in 2008, MPD has not reached a conclusion internally as to whether or not the officer’s firearm discharge was lawful and within policy. The Justice Department found that MPD’s failure to complete timely and thorough investigations of officer-involved shootings undermined accountability and exposed MPD officers and the community to unreasonable risks that might have been addressed through prompt corrective action, noting that several investigations remained open for more than three years. Significantly, a small number of officers were involved in a disproportionate number of shootings, while the investigations into their shootings continued to be egregiously delayed. The findings released today mark the conclusion of the department’s second investigation of MPD in recent years. The department noted that similar deficiencies were found in its previous investigation that began in 2002.
“Although MPD appeared to correct course after our first investigation, many of the systemic problems that we previously identified returned to root deeply in MPD’s practices. Our findings should serve as a catalyst to help MPD and the city of Miami restore the community’s confidence in fair, effective and accountable law enforcement,” said Roy L. Austin Jr, Deputy Assistant Attorney General for the Civil Rights Division. “We look forward to collaborating with Chief Orosa, Mayor Regalado and the people of Miami to create and implement a comprehensive, court-enforceable plan to ensure sustainable reform.”
Wifredo Ferrer, U.S. Attorney for the Southern District of Florida stated, “In November 2011, the Civil Rights Division of the Department of Justice began a formal investigation to determine whether the city of Miami Police Department had engaged in a pattern or practice of excessive use of deadly force by firearms. After a careful and thorough review of the facts and circumstances surrounding a series of police-involved shootings, the Civil Rights Division found that the police department in fact engaged in such prohibited conduct. Today, we are releasing the detailed findings of the investigation, with the dual goal of shining a light on past wrongs and – more importantly – setting a clear course for the future that will assure the residents of the city of Miami that this type of behavior will not be repeated in our city. We commend Chief Orosa for recognizing some of the problems the Civil Rights Division found and for pursuing initiatives to address them. We are confident that the findings and recommendations will be heeded, and will result in institutional long-term reform that will make our city and police force better than ever.”
The department’s investigation involved an in-depth review of thousands of documents, including written policies and procedures, training materials, and internal reports, photographs, video and audio recordings and investigative files. The review benefited from productive dialogue with MPD supervisors and officers, city of Miami officials, the Office of the State Attorney, the Civilian Investigative Panel, and members of the Miami community. The Justice Department provided feedback to MPD during the investigation and commends Chief Manuel Orosa for taking steps to address some of the deficiencies identified since the investigation began.
The investigation was conducted by the Special Litigation Section of the Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the Southern District of Florida, with the assistance of an experienced law enforcement expert, pursuant to the pattern or practice provision of the Violent Crime Control and Law Enforcement Act of 1994. The findings letter will be available on the department’s website at http://www.justice.gov/crt/about/spl/. The department welcomes comments or concerns from the community via email at [email protected].
Attachment:
Miami PD Findings Letter (PDF)
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.
Jury Finds Charlotte Man Guilty of Robbing A Rite Aid PharmacyRead the Press Release
CHARLOTTE, N.C. – On Monday, July 8, 2013, a Charlotte federal jury convicted Antonio Donte Smith, 29, of Charlotte, of robbing a Rite Aid pharmacy in September 2012 and related firearms violations, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division and Chief Rob Merchant of the Pineville Police Department (PPD) join U.S. Attorney Tompkins in making today’s announcement.
On January 15, 2013, Smith was indicted by a federal grand jury on one count of Hobbs Act Robbery, one count of possession of a firearm in furtherance of a crime of violence, and one count of possession of a firearm by a convicted felon. After nearly three days of trial, Smith was found guilty of all charges.
According to filed documents, evidence presented at trial and witness testimony:
On September 4, 2012, Smith entered a Rite Aid pharmacy located in Pineville, N.C. wearing a white hooded sweatshirt and a cut-off black tee-shirt sleeve across his face, and carrying a Ruger, .45 caliber pistol. Smith waited for a customer to leave the register counter, then pointed the firearm at the store clerk and demanded money from the cash register. The cashier opened the register and Smith took the money out of the drawer. While Smith was taking the money, a customer approached the register. Smith pointed his firearm at the customer, told the customer to get on his knees, and robbed the customer of his wallet. Smith then proceeded to the store’s office, where forced the store manager to give him all the money kept in the store’s safe.
Smith fled the scene, got into his get-away vehicle and led law enforcement officers on a high speed chase. After running two red lights and hitting another vehicle, Smith abandoned his damaged car and ran into a wooded area where he dropped the firearm, the white hooded sweatshirt, and the cloth he used as a mask. Police officers, assisted by the K-9 unit, tracked Smith who was hiding in a nearby apartment complex. Smith attempted to flee again at which time the K-9 handlers released the dog after Smith. Smith was apprehended by law enforcement, after he sustained a dog bite in his thigh. In the area where Smith was apprehended, officers found money and a receipt that belonged to the Rite Aid customer who Smith had robbed earlier.
At trial, the pharmacy customer Smith had robbed in the store testified that he was scared for his life during the robbery. Witnesses also testified that while Smith was in the office with the store manager, Smith pointed the firearm at her and began to count down from ten while she tried to open the safe. At trial, Smith claimed that it was his brother who had robbed the Rite Aid pharmacy.
In 2002, Smith was convicted in state court of four counts of robbery with a dangerous weapon. According to police reports and court documents from that case, Smith robbed three Charlotte-area Eckerd Drugs and a KFC restaurant and even shot a cashier working at one of the drug stores during one of the robberies.
Smith has been in local federal custody since he was arrested in February 2013 and will remain in custody until his sentencing date, which has not yet been set. At sentencing, Smith faces a faces a minimum of 22 years and a maximum of life in prison, a $250,000 fine or both.
The case was investigated by ATF and PPD. The prosecution is being handled by Assistant U.S. Attorney Jennifer Dillon.
Jury Convicts Long Time Fugitive in Marijuana CaseRead the Press Release
McALLEN, Texas – Alexis Estevez-Alvarez, 45, of Havana, Cuba, has been found guilty of possession with intent to distribute marijuana and a subsequent charge of failure to appear, United States Attorney Kenneth Magidson announced today. The verdict was returned following less than two days of trial and approximately 30 minutes of deliberation.
Estevez-Alvarez was originally charged in 2003, permitted release on bond and set for trial Oct. 3, 2003, before U.S. District Judge Randy Crane. Estevez-Alvarez failed to appear for court and was subsequently indicted on that charge as well.
He remained a fugitive for almost 10 years until apprehended on Oct. 29, 2012. On that date, Alvarez-Estevez was discovered in the bed of a Ford F-150 restrained and inebriated at the Progreso Port-of-Entry after someone had crossed him into the United States and then fled back to Mexico.
The original case began on June 20, 2003, when two former deputies with the Hidalgo County Sheriff’s Office approached a residence in Mercedes seeking consent to search the residence. According to evidence and testimony at trial, deputies then found 42 bundles of marijuana totaling 671 kilograms in a shed next to a pre-fabricated house on the property. Estevez-Alvarez stated he lived on the property with his wife along with another friend for approximately four months.
The government also proved that for the past 10 years Estevez-Alvarez has been able to work and live in both Weslaco and Nuevo Progreso, Tamaulipas, Mexico, as well as maintain a relationship with his now ex-wife.
The defense contended that unknown individuals had “control” of Estevez-Alvarez that prevented him from showing up to court in 2003 and that it was fear of retribution from these individuals that kept him from court over the past decade.
The jury disagreed and found him guilty on both counts as charged.
He faces a minimum of five and up to 40 years in federal prison as well as a possible $2 million fine for the drug charge and another five years and/or a $250,000 fine for failure to appear. He will remain in custody pending his sentencing hearing, set for Sept. 16, 2013, before Judge Crane.
The investigation was conducted by the Hidalgo County Sheriff’s Office and Homeland Security Investigations. Assistant United States Attorney Juan F. Alanis is prosecuting the case.
Iraqi Company Business Manager Pleads Guilty in Texas <br /> to Illegal Gratuities SchemeRead the Press Release
A business manager for an Iraqi company pleaded guilty today to giving thousands of dollars in illegal gratuities to a U.S. pay agent from contractors while the business manager was in Iraq, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Mario G. Khalil, 50, of Houston, pleaded guilty before U.S. District Judge David Hittner in the Southern District of Texas to a criminal information charging him with one count of giving a gratuity to a public official. At sentencing, scheduled for Oct. 3, 2013, he faces a maximum sentence of two years in prison.
According to court documents, from 2007 through 2009, Khalil worked at Camp Liberty in Iraq as a business manager for an Iraqi contracting company, holding various contracts with the U. S. Army, Air Force and Department of Defense to provide logistical services and supplies.
Khalil told Richard Gilliland – a U.S. Army staff sergeant serving as a pay agent for civil investment projects in Iraq from October 2007 through November 2008 – that Khalil’s company was interested in obtaining contracts and acquiring used and non-working generators from the Defense Reutilization and Marketing Office (DRMO) and was seeking Gilliland’s assistance as an Army official. Khalil gave and offered Gilliland approximately $10,000 in cash and a laptop computer in return for his influence in obtaining generators and future contracts.
Gilliland pleaded guilty in February 2013 to an information stemming from the same scheme and is awaiting an August 2013 sentencing.
The case was investigated by the Special Inspector General for Iraq Reconstruction. The case is being prosecuted by Director of Procurement Fraud Litigation Catherine Votaw and Trial Attorney Mark Grider of the Criminal Division’s Fraud Section and Assistant U.S. Attorney James Buchanan of the Southern District of Texas.
Granite City Woman Charged in Cocaine ConspiracyRead the Press Release
Shelly A. Stodnick, 41, of Granite City, Illinois, was indicted by a federal grand jury sitting in East St. Louis, on June 18, 2013, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The Grand Jury charged Stodnick with Conspiracy to Distribute and Possess with the Intent to Distribute Cocaine. The indictment also seeks the forfeiture of certain real property and “all property constituting or derived from any proceeds…obtained directly or indirectly” from the offense. The indictment was originally suppressed, but has since been unsealed. Upon conviction, the charged offense carries a possible penalty of ten (10) years to life imprisonment, a $10,000,000 fine, at least five (5) years of supervised release, and a $100 special assessment. Stodnick made her first appearance and was arraigned on July 8, 2013. Trial is currently scheduled for September 9, 2013, in United States District Court in East St. Louis.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
Evidence in support of the indictment in this case was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Participating agencies include the Drug Enforcement Administration (DEA), Internal Revenue Service, Criminal Investigations, the U.S. Immigration and Customs Enforcement Office of Homeland Security Investigations (ICE HSI), U.S. Marshal Service, the Granite City Police Department, the Fairview Heights Police Department, the Collinsville Police Department, the St. Louis Metropolitan Police Department, the St. Louis County (Missouri) Police Department, the St. Charles County (Missouri) Sheriff’s Department, and the Nebraska State Patrol. This case is assigned to Assistant United States Attorney Randy G. Massey for prosecution.
Goodwin: “another Pedophile Off the Internet”Read the Press Release
Huntington man admits receiving child pornography, pleads guilty to federal crime
HUNTINGTON, W.Va. – “We’ve taken another pedophile off the Internet,” U.S. Attorney Booth Goodwin announced, in the wake of a Huntington man’s federal guilty plea on a child pornography charge. Raymond Eugene Leake, 34, pleaded guilty on July 8 to receiving child pornography before United States District Judge Robert C. Chambers in Huntington. Leake collected more than 600 pictures and videos of children having sex or performing sexual acts. The child pornography was found on Leake’s computer after he downloaded it from the Internet. On or about January 13, 2013, Leake sent at least one image of child pornography to another pedophile over the Internet.
U.S. Attorney Booth Goodwin said, “Pedophiles like Mr. Leake who download and trade images of child pornography over the Internet are perpetuating crimes that involve the exploitation of innocent children. I will be relentless in prosecuting them.”
Leake faces a mandatory minimum of five years and up to 20 years in prison. Leake also faces a $250,000 fine when he is sentenced on October 7, 2013.
The West Virginia Internet Crimes Against Children Task Force conducted the investigation. Assistant United States Attorney Jennifer Rada is in charge of the prosecution.
This case is being brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Four Defendants Plead Guilty to Drug Conspiracy ChargesRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that
Dion Anderson, Melvin Calhoun, Toshia Hodge, and Anquensha Hodge, all of Buffalo, pleaded guilty to conspiracy to distribute crack cocaine before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison, a $1,000,000 fine or both.Assistant U.S. Attorney Melissa Marangola, who is handling the case, stated that between 2000 and February 2012, the defendants participated in a family run drug trafficking organization headed by family matriarch and grandmother Theresa Anderson. The organization controlled drug sales on Swinburne and Deshler Streets in the City of Buffalo. The defendants sold crack cocaine on a daily basis in the neighborhood. In order to monopolize narcotics sales in the area, Theresa Anderson, who pleaded guilty on July 2, 2013, threatened and intimidated rival narcotics traffickers and even purchased several homes in the area which were used for selling and storing the illegal narcotics.
The defendants and Anderson were arrested in February 2012 along with Steven Butler, Wymiko Anderson, Tajia Anderson, and Leo Mellerson. Five of these are either children or grandchildren of Anderson. A sixth defendant is Anderson's husband and the two others are boyfriends of Andersons' daughters. Today's guilty pleas bring the total number of defendants convicted to eight. Charges against Leo Mellerson are still pending.
The pleas are the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Brian R. Crowell, Special Agent in Charge, New York Field Division, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the New York State Police, under the direction of Major Michael Cerretto.Dion Anderson will be sentenced on October 21, 2013; Melvin Calhoun on October 22, 2013; Anquensha Hodge will be sentenced on October 23, 2013; and Toshia Hodge will be sentenced on October 24, all before Judge Arcara.
Four Colombian Nationals Charged in International Drug Money Laundering ConspiracyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Mark R. Trouville, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, announced the filing of one count indictment charging four defendants for their participation in an international money laundering conspiracy in which they laundered millions of dollars for transnational drug trafficking organizations.
Charged in the indictment were Dilleman Hernando Solorzano-Lozano, 46, Isaac Perez Guberek Ravinovicz, 77, Henry Guberek Grimberg, 55, and Johanna Patricia Ceballos-Bueno, 27, all Colombian nationals. More specifically, the defendants are charged with conspiracy to launder the illegal proceeds from the manufacture, importation, sale, and distribution of a controlled substance. If convicted, the defendants face a possible maximum statutory sentence of up to 20 years in prison.
U.S. Attorney Wifredo A. Ferrer stated, “Money launderers provide a critical service to narco-traffickers, helping them to wash, move, and hide their drug money. Today’s indictment, however, sends a message to those who hide behind seemingly legitimate businesses to launder drug money. The reach of American justice is as long as it is strong. With the help of our international law enforcement partners, we will find you and you will be brought to justice.”
DEA Special Agent in Charge Mark R. Trouville stated, “Drug traffickers' main motivation to enter the illegal drug trade is making money, and they will go to any length to hide and protect their drug profits. These bad actors often depend on international businesses to facilitate the illegal movement of their drug profits. But be on notice: whether you are a successful businessman or a secretary, if you assist drug traffickers to launder their funds, you will face the same justice.”
In a separate action also announced today, the U.S. Department of the Treasury announced the designation of Isaac Perez Guberek Ravinovicz, his son, Henry Guberek Grimberg, and Johanna Patricia Ceballos-Bueno, as well as 29 other individuals and entities, including companies located in Colombia, Panama, and Israel, as Specially Designated Narcotics Traffickers (SDNTs). This action, taken pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act), generally prohibits U.S. persons from conducting financial or commercial transactions with these entities and individuals, and freezes any assets they may have under U.S. jurisdiction. Since June, 2001, the Treasury Department has designated more than 1,200 individuals and entities linked to 103 drug kingpins.
Mr. Ferrer commended the investigative efforts of the DEA and the U.S. Treasury Department. This case is being prosecuted by Assistant U.S. Attorney Michael B. Nadler.
An indictment is only an accusation and the defendants are 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.
Fort Mojave Man Sentenced to 63 Months in Federal Prison for Possessing Sawed-off ShotgunRead the Press Release
PHOENIX, Ariz. – On July 8, 2013, Joshua Samuel Jenkins, 33, of Mohave Valley, Ariz. and a member of the Fort Mojave Indian Tribe, was sentenced by U.S. District Judge David G. Campbell to 63 months in prison, three years of supervised release, and forfeiture of a firearm and ammunition. Jenkins pled guilty on May 28, 2013 to the offense of Felon in Possession of a Firearm. He had been previously convicted of four felony offenses, and in this incident possessed a sawed-off or shortened shotgun and ammunition.
The investigation in this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Mojave Tribal Police Department. The prosecution was handled by Jennifer E. Green, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-13-8007-PCT-DGC
RELEASE NUMBER: 2013-053_JenkinsFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Former San Francisco Resident Sentenced to 20 Months in Prison for $3.43 Million Mortgage Fraud SchemeRead the Press Release
SAN FRANCISCO, Calif. – Kevin Derricott was sentenced yesterday to 20 months in prison for his role in a scheme to defraud lenders out of millions of dollars, United States Attorney Melinda Haag announced.
On February 19, 2013, Derricott pleaded guilty to conspiracy to commit wire and bank fraud and bank fraud. According to the plea agreement, from about February 2006 through December 2008, Derricott conspired with others to submit mortgage applications to various lenders that contained materially false information about the borrower-applicants, such as inflated salary figures, inflated assets claims, or false employment information, in order to trick the lenders into making loans. Derricott also recruited borrower-applicants, procured false supporting documentation for loan applications, and submitted fraudulent loan applications to lenders in exchange for a portion of the fraudulent proceeds.
Derricott, 40, of Rocklin, California, was charged on December 15, 2011, by the grand jury with conspiracy to commit bank and wire fraud, in violation of Title 18 USC Section 1349, and bank fraud, in violation of Title 18 USC Section 1344. He pleaded guilty to all counts in the indictment. The Honorable William H. Alsup, U.S. District Court Judge, imposed the sentence. Judge Alsup ordered Derricott to serve 3 years of supervised release following his imprisonment, with the special condition of 16 months’ home confinement, and ordered him pay restitution of $3.43 million.
Kathryn Haun is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Daniel Charlier-Smith. The prosecution is the result of an investigation by the FBI and IRS-CI.
Former President of National Prearranged Services, Inc. and CEO of Lincoln Memorial Life Insurance Company Pleads Guilty to Fraud and Money Laundering ChargesRead the Press Release
St. Louis, MO - RANDALL K. SUTTON pled guilty today before United States District Judge Jean C. Hamilton to participating in a fraudulent scheme involving the sale of prearranged funeral contracts and misappropriation of insurance premiums. Sutton faces up to 84 months in prison for his role.
In court, Sutton admitted that beginning in 1992 and continuing until 2008, National Prearranged Services, Inc. ("NPS") sold prearranged funeral contracts in several states, including Arizona, Florida, Illinois, Iowa, Kansas, Kentucky, Missouri, Oklahoma, Ohio and Tennessee. During that time, insurance companies affiliated with NPS, including Lincoln Memorial Life Insurance Company, issued life insurance policies related to those prearranged funeral contracts. As part of the contracts, the total price for funeral services and merchandise for an individual was agreed upon, and that price would remain constant regardless of when the funeral services and merchandise would be needed. Customers entering into prearranged funeral contracts would usually pay a single sum of money up-front to NPS either directly or through a funeral home that was also a party to the contract. NPS represented to individual customers, funeral homes and state regulators that funds paid by customers under the prearranged funeral contracts would be kept in a secure trust or insurance policy as required under state law.Sutton admitted, however, that NPS made use of funds paid by customers in ways that were inconsistent both with its prior and continuing representations and with the applicable state laws and regulations. In some states, such as Illinois, insurance premiums were misappropriated before an insurance policy was issued. In other states, such as Ohio, unauthorized policy loans were taken against insurance policies owned by individual policy holders. In Missouri, NPS received withdrawals from the preneed trust of funds and assets that were required by its agreements and by the applicable state law to remain in trust. Ultimately, NPS operated as a fraudulent Ponzi-like scheme, where customer funds were neither kept safe in bank trusts or insurance policies, but instead were utilized for unauthorized purposes and the personal enrichment of NPS' officers and others.
At various times during the time period between 1981 and 2008, Sutton held the titles of Chief Financial Officer, Director and President of National Prearranged Services, Inc.; Vice President, Chief Executive Officer and Director of Lincoln Memorial Life Insurance Company; and Vice President and Director of Memorial Service Life Insurance Company. His duties for NPS included management responsibilities relating to operations and finances.
Sutton pled guilty to one count of bank fraud (count 7), one count of mail fraud (count 24), one count of money laundering (43) and one count of misappropriation of an insurance premium (count 48). Sentencing has been set for November 7, 2013.
Last week, Sutton's co-defendants James Douglas Cassity and Brent Douglas Cassity pled guilty to participating in this same scheme. Sutton's co-defendant Sharon Nekol Province pled guilty last month. Sutton's co-defendants Howard A. Wittner and David R. Wulf are scheduled to appear for trial starting on August 5, 2013. As is always the case, charges do not constitute proof of guilt and every defendant is presumed to be innocent unless and until proven guilty.
Sutton's case was investigated by the Internal Revenue Service-Criminal Investigation, the Federal Bureau of Investigation and the Postal Inspection Service. Assistant United States Attorneys Steven Muchnick, Charles Birmingham and Richard Finneran are handling the case for the U.S. Attorney’s Office.
Former Officer of New Mexico-Based Defense Contractor Pleads Guilty to Conspiracy, Kickback and Tax Evasion Charges Related to Rebuilding Efforts in IraqRead the Press Release
ALBUQUERQUE – Bradley G. Christiansen, 47, of Albuquerque, N.M., pleaded guilty last week to criminal charges arising out of his role in a conspiracy to solicit and accept kickbacks in return for favorable treatment in awarding subcontracts relating to wartime rebuilding projects in Iraq and his efforts to evade federal taxes on the money and assets he received as kickbacks.
Christiansen’s guilty plea was announced by U.S. Attorney Kenneth J. Gonzales, Janice M. Flores, Special Agent in Charge of the Southwest Field Office of the Defense Criminal Investigative Service (DCIS), Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI, Dawn Mertz, Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation, and Stuart W. Bowen, Jr., Special Inspector General for Iraq Reconstruction (SIGIR).
Christiansen, together with Neal Kasper, 63, and Tiffany White, 46, of Cibolo, Tex., all former officers of a New Mexico-based defense contractor, and four foreign nationals, was charged with conspiracy to defraud the United States of more than $5 million through wire fraud in a 91-count indictment filed in Feb. 2012. The indictment also charged the seven defendants with 74 substantive wire fraud offenses, and with offering and receiving illegal kickbacks. It also charged Christiansen, Kasper, White and Sara Christiansen, 48, with conspiracy to launder money and 11 substantive money laundering offenses, and Christiansen with three counts of tax evasion.
According to the indictment, during the Iraqi war and continuing through 2011, the United States funded numerous construction and rebuilding projects in Iraq and Jordan, including contracts administered by the United States Air Force Center for Engineering and the Environment (AFCEE). Laguna Construction Company, Inc. (LCC), a minority disadvantaged business wholly owned by the Pueblo of Laguna, successfully bid and was awarded multiple contracts, including AFCEE contracts, for wartime reconstruction and rebuilding projects in Iraq and Jordan. From 2003 through 2009, LCC administered more than $350 million of Iraqi and Jordanian reconstruction contracts.
LCC was required to award subcontracts to foreign companies by generating requests for proposals and soliciting independent subcontract bids from qualified foreign companies. All subcontract bids were required to be independently prepared by the subcontractors without collusion from LCC, and LCC was required objectively to evaluate the bids and to award the subcontracts to the lowest qualified bidders. LCC and its personnel were prohibited from accepting anything of value, whether gifts, bribes or kickbacks, from the bidders. According to the indictment, from Jan. 2004 through Feb. 2009, Kasper, Christiansen and White, who were officers and employees of LCC but not members of the Pueblo of Laguna, conspired with the four foreign nationals to defraud the United States of more than $5 million. They also allegedly conspired to launder the illegal kickbacks they received from the foreign nationals to conceal the unlawful nature of the proceeds.
During his plea hearing on July 2, 2013, Christiansen entered a guilty plea to a felony information charging him with conspiracy to provide, solicit and accept kickbacks. He also pleaded guilty to Counts 76 and 91 of the indictment, charging him with solicitation and receipt of kickbacks and tax evasion, respectively.
In his plea agreement, Christiansen acknowledged that AFCEE awarded two prime contracts to LCC relating to United States’ reconstruction efforts in Iraq, which required LCC to serve as a prime contractor and provide construction management services in response to task orders from AFCEE. From 2003 through 2009, LCC received and administered approximately $397 million through the two contracts which contemplated that LCC would award work to subcontractors to complete reconstruction projects. Christiansen was hired as a LCC division manager in 2002 by Kasper, who was then president of LCC, and becoming LCC’s operations manager and vice president of operations in 2005. In that capacity, he oversaw all LCC Iraq reconstruction projects under the supervision of Kasper, who was in charge of all of LCC’s construction operations, including those involving wartime reconstruction efforts in Iraq and Jordan.
According to the plea agreement, beginning in Dec. 2004, Christiansen, Kasper, White and others sought and obtained payments for task orders under the prime contracts under false pretenses by repeatedly certified that all subcontracts were awarded pursuant to competitive bidding procedures when in fact they were accepting kickbacks from subcontractors in return for awarding subcontracts to them. Specifically, Christiansen admitted that, from Dec. 2004 through Feb. 2009, Kasper, White, he and others conspired with the four foreign nationals to defraud the United States by soliciting and accepting kickbacks from the foreign nationals in return for awarding them subcontracts. Christiansen admitted accepting numerous kickbacks from the foreign nationals, and asserted that he had personal knowledge of Kasper accepting numerous kickbacks from the foreign nationals and directing them to send money to White.
Christiansen admitted receiving his first kickback in Dec. 2004, through Kasper, who had received a $20,000 kickback and shared half with Christiansen. According to Christiansen, from Jan. 2005 through Feb. 2009, Kasper and he received numerous kickbacks from the foreign nationals, which they split 50/50. In addition to approximately $360,000 in monetary kickbacks, Christiansen also admitting to receiving a 2006 Porsche Cayman valued at $65,163, a Ford GT350 Shelby valued at $290,000, several watches valued at an aggregate of $103,800 as kickbacks from the foreign nationals.
Christiansen also admitted that he willfully failed to declare the kickback payments and assets he received from the foreign nationals as personal income when filing his federal income tax returns in 2006, 2007 and 2008. As a result, Christiansen evaded approximately $389,413 in federal taxes.
At sentencing, Christiansen faces a maximum penalty of ten years in prison. The plea agreement also requires Christiansen to pay full restitution to the victims of his criminal conduct, including $389,413 in restitution to the IRS. The plea agreement also requires that Christiansen agree to the imposition of a money judgment against him in the amount of $1,687,310.84 and that he forfeit all assets derived from his criminal conduct, including his residence which was substantially remodeled with kickbacks from the foreign nationals. As required by the plea agreement, the United States has filed a motion to dismiss all charges against Sara Christiansen.
“While our brave men and women in uniform viewed the Iraq War as an opportunity to serve their country and make sacrifices for it, Bradley Christiansen saw it as an opportunity to enrich himself at the expense of the American taxpayers,” said U.S. Attorney Kenneth J. Gonzales. “However, the Pueblo of Laguna and its people also were harmed by Mr. Christiansen’s crimes and the crimes allegedly committed by his codefendants. As a result of their criminal activities, the Laguna Construction Company, a company that was once one of the largest U.S. contractors in Iraq and Jordan, has been dissolved and has ceased doing business. While this prosecution cannot restore what the Pueblo of Laguna has lost, I hope the community can take comfort in knowing that there is a dedicated team of agents, investigators and prosecutors who will make sure that those responsible are prosecuted to the fullest extent of the law. I also want to thank Governor Richard Luarkie and the Pueblo of Laguna for their cooperation during the investigation of this case.”
“The guilty plea in this matter demonstrates the Federal Government’s continuing resolve to ensure those who violate the law are brought to justice and held accountable for their actions and is an excellent example of cooperation amongst numerous law enforcement agencies, to include the Defense Criminal Investigative Service, the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, and the Special Inspector General for Iraq Reconstruction (SIGIR),” said Janice M. Flores, Special Agent in Charge of the DCIS Southwest Field Office.
“Companies and individuals who do business with the federal government are held to high standards of responsibility and accountability. When they choose to enrich themselves at the public's expense, these entities can expect the FBI will come knocking on their door,” said Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI. “I would like to thank the FBI Special Agents, Professional Support Staff, U.S. Attorney's Office and our law enforcement partners whose hard work made today's plea and plea agreement possible. The FBI will continue to work closely with our partners to protect taxpayers by vigorously investigating companies and individuals who commit fraud both domestically and overseas.”
“Mr. Christiansen has taken responsibility for his role in this complex fraud scheme involving kickbacks and other illegal activity,” said Dawn Mertz , Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation. “He defrauded the taxpayers of the United States by diverting government funds for his own benefit and also failed to report this income on his own tax returns.”
Special Inspector General for Iraq Reconstruction Stuart W. Bowen Jr. said, “Bradley G. Christiansen’s defrauding of the American taxpayer through contract kickbacks and other illegal practices is made even more egregious by his use of a disadvantaged minority business to gain Iraq reconstruction contracts.” IG Bowen praised the team effort put forth not only by SIGIR, but also, the FBI, the DCIS and IRS Criminal Investigation.
Kasper and White have entered not guilty pleas to the indictment and are currently scheduled for trial on Oct. 7, 2013. The four foreign nationals, Ramzi Snobar and Yacoub Snobar, citizens of Jordan, Mustapha Ahmad, a duel citizen of Lebanon and Great Britain, and Ali Al Aridhi, a citizen of Iraq, have not been arrested and are considered fugitives. The charges in the indictment against these six defendants are merely allegations and the defendants are presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
This case is being prosecuted by Assistant U.S. Attorneys Mary L. Higgins, George C. Kraehe and Shana B. Long, and was investigated by the DCIS, the Albuquerque Division of the FBI, IRS Criminal Investigation, SIGIR and the Defense Contract Audit Agency. Assistant U.S. Attorney Stephen R. Kotz is handling the related forfeiture proceedings.
Former Manager for Cuyahoga Heights School District Sentenced to 11 Years in Prison for Stealing $3.4 MillionRead the Press Release
A former employee of the Cuyahoga Heights School District was sentenced to more than 11 years in prison for the theft of more than $3.4 million from the district, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Joseph M. Palazzo, age 31, of Independence, Ohio, previously pleaded guilty to conspiracy to commit mail fraud, conspiracy to commit money laundering, and wire fraud.
U.S. District Judge Benita Pearson sentenced Palazzo to 136 months in prison and ordered him to pay $3.4 million in restitution.
“This defendant stole millions of dollars that were intended to educate school children,” Dettelbach said. “There is simply no room for this type of corruption in our community.”
“This investigation uncovered a multi-million dollar embezzlement scheme laced with a web of financial lies that left a local school district in financial peril,” said Kathy Enstrom, Acting Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
“Joseph Palazzo violated the trust that the citizens and students of Cuyahoga Heights had placed in him by funding his personal account with millions of their tax dollars,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office. “The investigators are to be commended for uncovering this enormous fraud.”
Palazzo was employed by the Cuyahoga Heights School District as its Information Technology Director until February 2011. Palazzo was responsible for managing the district’s IT Department, which included purchasing hardware and software and making other IT expenditures to benefit the district and its students, according to court documents.
Palazzo devised a scheme to divert millions of dollars of district funds to his personal use and the personal use of others. This scheme involved Palazzo submitting to the district for payment false invoices that purported to be for IT-related goods and services purchased from legitimate companies by the district’s IT Department to benefit the district. Palazzo represented that the invoices he submitted were legitimate, and he approved the false invoices himself or forged the signature of another in the approval section, according to court documents.
However, these invoices were for services never performed, fictitious software and hardware, and software and hardware never received or already purchased by the district from another source. The companies named on the invoices did not supply such goods to or perform such services for the district and were nothing more than “shells,” according to court documents.
Palazzo’s actions caused the district to issue checks to these shell vendor corporations, which were established and owned by others working with Palazzo. The shell vendor corporation owners, in turn, kept approximately half of the stolen money themselves and funneled the remainder of the money back to Palazzo for his personal use, according to court documents.
As a result of the conduct of Palazzo and his co-conspirators, the district was defrauded and sustained a total loss of at least $3,333,448, according to court documents.
Palazzo also engaged in a second scheme to defraud the district. It involved Palazzo purchasing various personal electronic items, such as I-Pads, cameras, and televisions, from legitimate district vendors. Palazzo then altered the invoices from such purchases to falsely reflect that classroom items, such as digital microscopes, projectors, and laptops, had been purchased for the district and submitted those invoices to the district for payment. Upon receipt of these personal electronic items, Palazzo sold them to third-parties at a discounted price and kept the money from such sales for his own personal use, according to the information.
As a result of the Palazzo’s conduct in the second scheme, the district was defrauded and sustained an additional loss of at least $76,214, according to the information.
This case was investigated by Special Agents of the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation, both located in Cleveland, with the assistance of the State of Ohio Auditor’s Office, the Cuyahoga County Sheriff’s Office, and the United States Postal Inspection Service.
The case is being prosecuted by Assistant United States Attorney Rebecca Lutzko, Special Assistant United States Attorney Perry Mastrocola, and Assistant United States Attorney James L. Morford.Former Federal Law Enforcement Officer Sentenced to One Year and One Day in Prison for Receiving Illegal Gratuities and Making False StatementsRead the Press Release
ALEXANDRIA, Va. – David J. Rainsberger, 33, formerly a law enforcement officer with the State Department’s Diplomatic Security Service, was sentenced today to 366 days in prison, followed by 1 year of supervised release, for receiving unlawful gratuities while stationed at the U.S. embassy in Kingston, Jamaica, and making false statements to the United States government on a national security questionnaire required to maintain his security clearance. Rainsberger was also ordered to forfeit to the government two Movado-brand watches as proceeds of his crimes.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Gregory B. Starr, Director of the Diplomatic Security Service for the U.S. Department of State, made the announcement after sentencing by United States District Judge Gerald Bruce Lee. Rainsberger previously pleaded guilty to the two felonies on February 6, 2013
According to court records, Rainsberger served as an assistant regional security officer for investigations at the U.S. embassy in Kingston, Jamaica, from 2009 to 2011. While there, Rainsberger befriended a well-known Jamaican musician whose entry to the U.S. had been barred because of allegations of criminal conduct. Rainsberger’s investigation of this individual resulted in the reinstatement of his visa, which allowed the individual to travel to the U.S. to take advantage of lucrative performance and recording opportunities. On account of the assistance Rainsberger provided him with respect to his U.S. visa, the musician purchased for Rainsberger two luxury watches, clothes, and shoes worth approximately $3,000. In addition, Rainsberger received free admission to nightclubs, backstage access to concerts, and a birthday party hosted by the musician.
At the same time, Rainsberger, who was already married, became engaged to a Jamaican national and intentionally withheld disclosure of the relationship from the U.S. government on Office of Personnel Management Standard Form 86, a national security questionnaire that requires disclosure of close and continuing contact with foreign nationals. Rainsberger also repeatedly accessed, without authority, Department of State visa and passport databases for personal purposes.
This case was investigated by the Diplomatic Security Service. Assistant United States Attorneys Paul J. Nathanson and G. Zachary Terwilliger prosecuted the case on behalf of the United States.A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Former Director of National Prearranged Services, Inc. Pleads Guilty to Making False Statements in Connection with Purchase of Insurance CompanyRead the Press Release
St. Louis, MO - HOWARD A. WITTNER pled guilty today before United States District Judge Jean C. Hamilton to two felony counts of making false statements intended to deceive insurance regulators in connection with the acquisition and administration of the Professional Liability Insurance Company of America ("PLICA"). Wittner also pled guilty to willfully permitting a felon to engage in the business of insurance. Wittner faces between one and five years in prison for his crimes.
Wittner, who served as trustee of the family trust whose holdings included National Prearranged Services, Inc. and Lincoln Memorial Life Insurance Company, admitted to making multiple false statements to the New York Department of Insurance in order to obtain approval for the trust to acquire PLICA, a New York medical malpractice insurance company. The statement submitted by Wittner and others failed to disclose several material facts, including the ultimate source of the money being used to purchase PLICA and the fact that Wittner's co-defendant James Douglas Cassity would be involved with its management and operations. Wittner admitted that he knew the statement was false and intended to deceive the New York Department of Insurance so that it would approve the trust's acquisition of PLICA. Wittner also admitted to submitting an annual statement to the New York Department of Insurance that concealed the existence of numerous agreements and transactions with affiliated persons and entities that required disclosure.Wittner served as the trustee for the Cassity family trust since at least 1990. At various times during his trusteeship, Wittner also served as a Director of both NPS and PLICA and Chairman of the Board of Directors of Forever Enterprises, Inc., the parent company of Memorial Service Life Insurance Company and Lincoln Memorial Life Insurance Company.
Wittner pled guilty to two counts of knowingly making a materially false statement to an insurance regulatory agency for the purpose of influencing the agency's actions (counts 45 and 46). Wittner also pled guilty to a felony count of willfully permitting James Douglas Cassity, whom he knew to have been convicted of a felony involving fraud or dishonesty, to exercise significant control over PLICA and NPS' affiliated insurance companies (count 50).
Sentencing for Wittner has been set for November 7, 2013. Also today, Wittner's co-defendant Randall Sutton, the former president of NPS, pled guilty to four counts of fraud, money laundering and misappropriation of insurance premiums. Wittner's co-defendants James Douglas Cassity, Brent Douglas Cassity and Sharon Nekol Province have each pled guilty to participating in the fraudulent scheme. Wittner's co-defendant David R. Wulf is scheduled to appear for trial starting on August 5, 2013. As is always the case, charges do not constitute proof of guilt and every defendant is presumed to be innocent unless and until proven guilty.
Wittner's case was investigated by Internal Revenue Service-Criminal Investigation, the Federal Bureau of Investigation and the Postal Inspection Service. Assistant United States Attorneys Steven Muchnick, Charles Birmingham and Richard Finneran are handling the case for the U.S. Attorney’s Office.
Former Children’s Minister Pleads Guilty to Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Derek M. Schwartzrock, 34, of Albuquerque, N.M., pleaded guilty this morning to receipt of a visual depiction of minors engaged in sexually explicit conduct. Under the terms of his plea agreement, Schwartzrock will be sentenced to 97 months in federal prison followed by a term of supervised release to be determined by the court. Schwartzrock also will be required to register as a sex offender. The guilty plea was announced by U.S. Attorney Kenneth J. Gonzales, Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) in El Paso, Texas, and Chief Robert W. Shilling of the New Mexico State Police (NMSP).
In announcing Schwartzrock’s guilty plea, U.S. Attorney Gonzales said, “Protecting our children from the permanent scars left behind when this type of exploitation occurs is critically important work. We have developed the expertise to responsibly gather the necessary evidence to charge these cases and, as demonstrated by today’s guilty plea, convictions on these charges carry serious penalties under federal law that should send a strong message of deterrence.”
“This case is particularly disturbing since Mr. Schwartzrock worked closely with children,” said HSI Special Agent in Charge Ulrich, who oversees HSI operations in New Mexico. “However it serves as a warning to other child predators that HSI and its law enforcement partners aggressively investigate this type of depraved activity, punishable by harsh penalties.”
“The partnership and teamwork the State has with our federal partners cannot be understated in bringing child predators to justice,” said NMSP Chief Shilling. “The exploitation of children on the Internet has no geographical or jurisdictional boundaries and requires that we share information, partner and work as a team when protecting our children.”
Schwartzrock was arrested by HSI and the NMSP on April 3, 2013, on a criminal complaint alleging that he received and possessed child pornography in Bernalillo County, N.M. At the time, Schwartzrock was a children’s minister in an Albuquerque-area church. He has been in federal custody since his arrest. On April 24, 2013, Schwartzrock was indicted and charged with three counts of receipt of child pornography and two counts of possession of child pornography.
During today’s hearing, Schwartzrock entered a guilty plea to Count 2 of the indictment, charging him with receipt of child pornography. In his plea agreement, Schwartzrock acknowledged that HSI and NMSP executed a search warrant at his residence on April 3, 2013 and seized computers and computer-related media. The search warrant was issued based on an undercover investigation by HSI in Philadelphia that began in Oct. 2012, and targeted individuals who used a photo-sharing website to possess, receive and distribute child pornography. HSI in Albuquerque began investigating Schwartzrock in mid-March 2013 after HSI in Philadelphia determined that an individual in Albuquerque was accessing the targeted website and learned that Schwartzrock was the subscriber for the IP Address that allegedly was used to download sexually explicit images of children.
Schwartzrock admitted voluntarily participating in a recorded interview on April 3, 2013. During the interview, he admitted that he began looking for images of naked boys, with a preference for elementary school aged children, several months earlier and that he downloaded child pornography images from the Internet. Schwartzrock also acknowledged that a forensic preview of his computers and computer-related media have uncovered over 12,000 images consistent with child pornography and child erotica. The plea agreement also states that an extensive computer forensic examination of Schwartzrock’s computers and computer-related media is ongoing.
Schwartzrock remains in federal custody pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of HSI, the NMSP and the New Mexico Regional Forensic Lab, and is being prosecuted by Assistant U.S. Attorney Charlyn E. Rees. It was brought 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/.
The Operation also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Florida Man Charged in Connection with Arson Attack on South Seattle HomeRead the Press Release
A Florida resident who had threatened family members over a $20,000 debt was arrested yesterday in connection with a destructive device left in June 2013 at the Seattle home of his relatives, announced U.S. Attorney Jenny A. Durkan. SANG NGOC UNG, 53, of Margate, Florida is charged by criminal complaint with possession of a destructive device. UNG remains a suspect in the June 10, 2013 arson of a home at 3939 S. Cloverdale Street in Seattle. The fire, set in the early morning hours, extensively damaged the home and forced the homeowner, her adult children and a friend to flee through a window and the garage. Shortly after that fire, investigators went to a second home associated with the family and discovered a destructive device that had not ignited. UNG is charged with possession of that device. He will make his appearance in U.S. District Court in Seattle at 1:30 today.
According to the criminal complaint, UNG had allegedly been pressuring family members in Seattle about $20,000 he believes is owed to him. Family members had attempted to pay some of the money, but UNG reportedly continued to threaten them if the debt was not paid. In mid-May 2013, UNG arrived in the Seattle area and again began pressuring the family to repay the debt. On June 9, 2013, UNG was observed attempting to contact people at both homes. The fire and the destructive device that failed to ignite were discovered the next day. Cell phone records place UNG in the Seattle area during the time the fire and destructive device were set. Evidence on the destructive device ties him to the scene. UNG returned to the Seattle area yesterday and was arrested by Seattle Police and ATF agents.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Seattle Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Federal Hud Investigation Results in North Providence Town Employee Reimbursing Hud Loan Program More Than $48,000; To Pay $78,000 in DamagesRead the Press Release
PROVIDENCE, R.I. – Maria Vallee, 47, of North Providence, R.I., a municipal employee for the town of North Providence, will pay more than $78,000 in damages after having reimbursed nearly $48,000 of Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) monies she received in the form of loans from the town of North Providence which she was not qualified to receive, according to a Civil Complaint and a Consent Judgment filed today with the U.S. District Court in Providence.
The CDBG loan program is a HUD program administered by various municipalities across Rhode Island to provide low interest loans to low and moderate-income families and the elderly to make necessary repairs to existing housing.
According to the Complaint, announced by United States Attorney Peter F. Neronha and Cary A. Rubenstein, Special Agent in Charge of the Northeast Region of the U.S. Department of Housing and Urban Development Office of Inspector General, between April and July 2008, Vallee applied for and received a total of $47,895 in HUD CDBG loans, even though she was aware that her and her husband’s combined salaries of $125,000 exceeded maximum salary guidelines. The maximum aggregate family income for a family applying for a home repair loan from the CDBG program was $58,550.
The guidelines for HUD CDBG loans require that loan monies be used to make dwellings sanitary, decent and safe. According to court documents, the Vallees used the HUD CDBG loans to finance the installation of new siding, a bay window, replacement windows, a door, and a new deck on their North Providence residence. A subsequent request added monies to make cosmetic changes to stairs leading to the home.
According to the Consent Judgment, in addition to having reimbursed the town and the HUD CDBG loan program $47,895, the total amount of the loans, Vallee must also pay an additional $78,292.50 in damages.
The matter, handled by Assistant U.S. Attorney Dulce Donovan, was investigated by the U.S. Department of Housing and Urban Development Office of Inspector General.
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[email protected]Engineer from M/t Stolt Facto, Anselmo Capillanes, Sentenced for Violating Act to Prevent Pollution from ShipsRead the Press Release
ANSELMO CAPILLANES, age 46, a citizen of the Philippines, was sentenced to two years probation and ordered to pay a $15,000 fine by U. S. District Judge Jay C. Zainey for violating the Act to Prevent Pollution from Ships, announced U. S. Attorney Dana J. Boente today.
According to the court documents, CAPILLANES served as the Second Engineer of the M/T Stolt Facto, a 26,328 gross ton oil tanker,from September 22, 2012 until on or about January 16, 2013. CAPILLANES was responsible for the operation of the Oil Water Separator onboard the vessel. The Oil Water Separator is the principal technology utilized to detect and prevent excessive concentrations of oil the vessel’s bilge water from being discharged overboard.
Starting in October 2012, CAPILLANES directed members of the engine room crew to connect hoses from the bilge wells and bilge holding tank located on the lower deck of the engine room and pump the contents of those tanks into the sewage holding tank on the uppermost deck of the engine room. By transferring the contents of the bilge wells to the sewage holding tank the oily water by-passed the Oil Water Separator and was then discharged from the sewage holding tank into the ocean.
These transfers and discharges were not recorded in the M/T Stolt Facto’s Oil Record Book. The Oil Record Book entries indicated that the Oil Water Separator had been used. In court documents associated with his guilty plea, CAPILLANES admitted he ran fresh water or sea water through the Oil Water Separator so that he could get readings from the White Box, the data recorder on the Oil Water Separator, making it appear that the Oil Water Separator was used in a manner consistent with the statements in the Oil Record Book to conceal that not all of the ship’s oily waste water was properly treated before being dumped overboard.
On or about January 15, 2013, the M/T Stolt Facto entered the waters of the United States in the Eastern District of Louisiana with this inaccurate Oil Record Book onboard. On or about that same date, the United States Coast Guard boarded the M/T Stolt Facto pursuant to their 89(a) authority and were presented with the false Oil Record Book."Falsifying records and by-passing mandatory pollution prevention equipment are serious offenses. Those who threaten the health of our marine environment must be held accountable. I applaud the professionalism and dedication of the members of Coast Guard Sector New Orleans, the Coast Guard Investigative Service, and the Department of Justice as they investigated and prosecuted this case," said Rear Admiral Kevin S. Cook, Eighth Coast Guard District Commander.
The case was investigated by the United States Coast Guard. The case was prosecuted by Emily Greenfield.
El Departamento de Justicia Revela los Descubrimientos de Su Investigación sobre el Departamento de Policía de Miami y los Incidentes de Disparos que Involucran a la PolicíaRead the Press Release
WASHINGTON - Después de una exhaustiva investigación, el Departamento de Justicia (el departamento) reveló hoy la carta sobre los hallazgos que determinan que el Departamento de Policía de la ciudad de Miami (Miami Police Department, MPD) ha seguido un patrón o práctica de uso excesivo de la fuerza mediante disparos que involucran a la policía, violando así la Cuarta Enmienda de la Constitución. Entre 2008 y 2011, los agentes dispararon intencionalmente a individuos en 33 ocasiones distintas, tres de las cuales fueron consideradas injustificadas por el mismo MPD. El departamento encontró una serie de prácticas del MPD que contribuyeron al patrón o práctica de fuerza excesiva, tales como tácticas deficientes, acciones inadecuadas por parte de unidades especializadas y retrasos indignantes y deficiencias importantes en las investigaciones de fuerza letal.
Los descubrimientos del departamento demostraron que el MPD no supo brindar supervisión o responsabilizar a los individuos por sus acciones ya que no completaron en su totalidad y en tiempo y forma las investigaciones de disparos que involucran agentes. Para una gran cantidad de disparos, incluyendo el ocurrido en 2008, el MPD no ha llegado a una conclusión interna respecto de si el disparo del oficial fue legal y acorde a las políticas. El Departamento de Justicia determinó que la ineficiencia del MPD para completar en tiempo y forma las investigaciones de disparos que involucran agentes socavó la rendición de cuentas y expuso a los agentes del MPD y a la comunidad a riesgos irracionales que podrían haberse evitado mediante la acción correctiva inmediata. Se demostró también que varias investigaciones permanecieron abiertas por más de tres años. Considerablemente, un pequeño grupo de agentes estuvieron involucrados en una cantidad desproporcionada de disparos, mientras que las investigaciones sobre sus disparos permanecen retrasadas de manera indignante. Los descubrimientos revelados hoy exponen la conclusión de la segunda investigación del departamento sobre el MPD en los últimos años. El Departamento notó que se encontraron deficiencias similares en investigaciones previas que comenzaron en 2002.
“Aunque parecía que el MPD había corregido su curso luego de nuestra primera investigación, muchos de los problemas sistémicos que identificamos previamente se han vuelto a enraizar profundamente en las prácticas del MPD. Nuestros descubrimientos deben ser un catalizador para ayudar al MPD y a la ciudad de Miami a restaurar la confianza de la comunidad en un orden público justo, efectivo y lógico,” dijo Roy L. Austin Jr., Asistente Suplente del Fiscal General de la División de Derechos Civiles. “Esperamos poder colaborar con el Prefecto Orosa, el Alcalde Regalado y la gente de Miami para diseñar e implementar un plan exhaustivo, supervisado por la corte, que asegure una reforma sostenible.”
El Fiscal de los Estados Unidos Wifredo Ferrer declaró: “En noviembre de 2011, la División de Derechos Civiles del Departamento de Justicia comenzó una investigación formal para determinar si el Departamento de Policía de la ciudad de Miami había seguido un patrón o práctica de uso excesivo de la fuerza letal por arma de fuego. Después de un análisis cuidadoso y profundo de los hechos y circunstancias que rodearon a la serie de disparos que involucran a la policía, la División de Derechos Civiles determinó que el Departamento de Policía sí mantuvo tal conducta prohibida. Hoy revelamos los descubrimientos detallados de la investigación, con la meta doble de arrojar luz sobre errores pasados y, aun es más importante, de marcar un curso claro para el futuro que garantice a los residentes de la ciudad de Miami que este tipo de conducta no se repetirá en nuestra ciudad. Agradecemos al Prefecto Orosa por reconocer algunos de los problemas que encontró la División de Derechos Civiles y por implementar iniciativas para solucionarlos. Confiamos en que los descubrimientos y recomendaciones serán oídos y conllevarán a una reforma institucional a largo plazo que mejorará más que nunca nuestra ciudad y policía.”
La investigación del departamento implicó un análisis profundo de miles de documentos, entre los que se incluyeron procedimientos y políticas escritas, material de entrenamiento, informes internos, fotografías, videos y audios grabados y expedientes de investigación. El análisis se nutrió del diálogo productivo con los agentes y supervisores del MPD, agentes de la ciudad de Miami, el Fiscal del Estado, el Panel de Investigación Civil y miembros de la comunidad de Miami. El Departamento de Justicia brindó devoluciones al MPD durante la investigación y agradece al Prefecto Manuel Orosa por dar pasos hacia la solución de algunas de las deficiencias identificadas desde que la investigación comenzó.
La investigación fue llevada a cabo por la Sección de Litigación Especial de la División de Derechos Civiles del Departamento de Justicia y la Fiscalía de los Estados Unidos para el Distrito Sur de Florida, con la ayuda de un experto en aplicación de la ley, conforme a la disposición en relación al patrón o práctica del Acta de 1994 sobre Control de Crímenes Violentos y Aplicación de la Ley. La carta sobre los descubrimientos estará disponible en la página Web del Departamento en: http://www.justice.gov/crt/about/spl/. El Departamento recibe comentarios o dudas de la comunidad en el siguiente correo electrónico: [email protected].
Dominican Republic Man Pleads Guilty to Re-entering the United States After Having Been Previously DeportedRead the Press Release
Albany, New York —HERMIS ANTONIO ADAMES, age 35, a citizen of the Dominican Republic, pled guilty today in United States District Court in Albany before Chief United States District Court Judge Gary L. Sharpe to one count of re-entry by a previously removed alien, announced United States Attorney Richard S. Hartunian.
ADAMES, a citizen of the Dominican Republic, was involuntarily removed from the United States to the Dominican Republic on May 6, 2009. On April 3, 2013, ADAMES, who did not have permission to re-enter the United States, was encountered by Immigration and Customs Enforcement officers near the bus station on Central Avenue in Albany.
Sentencing is scheduled for November 6, 2013, at 11:00 a.m. in Albany, New York. ADAMES faces a maximum sentence of imprisonment of up to ten years, supervised release of up to three years, a fine of up to $250,000, and a special assessment of $100. ADAMES was detained pending his sentencing.
This case was investigated by the Department of Homeland Security, Immigration and Customs Enforcement (ICE), Albany, New York.
LOCAL CONTACT:
Rick Belliss
Assistant U.S. Attorney
Tel: (518) 431-0247Denver Business Owner Is Sentenced to 77 Months in Prison as Part of A Ponzi SchemeRead the Press Release
DENVER – Michael James Turnock, age 69, of Denver, Colorado, was sentenced late yesterday by U.S. District Court Judge Christine M. Arguello to serve 77 months in federal prison for mail fraud and one count of money laundering as part of a Ponzi Scheme, the United States Attorney’s Office, IRS – Criminal Investigation, the Federal Bureau of Investigation, and the United States Postal Inspection Service announced. Following his prison sentence, Turnock was ordered to spend 3 years on supervised release. Judge Arguello also ordered him to pay $4,187,143.90 in restitution. The judge also granted the government’s request for the defendant to forfeit certain assets.
Turnock was originally charged by Information on February 14, 2013. He waived his right to be charged by an Indictment. According to the facts contained in the Information as well as the stipulated facts contained in the plea agreement, beginning no later than January 2002, and continuing through August of 2012, Turnock devised a scheme to defraud note-holders by obtaining money by means of materially false and fraudulent pretenses, representations and promises. The scheme ended on August 14, 2012, when the Securities and Exchange Commission (SEC) filed a complaint in federal court in Denver and obtained a court order freezing Bridge Premium Finance’s (BPF) assets. At that point, BPF’s note-holders included more than fifty people who had invested more than $4,000,000.
In about 1996, Turnock became the majority owner of Berjac of Colorado, LLC, and in 2004 he became the sole owner. Two years later, Turnock changed the name of the company to Bridge Premium Finance, LLC. BPF was in the business of providing financing to clients. The clients were small businesses whose insurance carriers required them to pay the full amounts of their annual premiums in advance. BPF’s clients paid 25% of the premiums, and BPF loaned the remaining 75%. The clients usually repaid the principal amounts of the loans over eight- or nine-month periods, and made interest payments to BPF at rates between 12% and 18%. Nearly all of the money coming into BPF during this time came from investors, who received a promissory note from BPF, signed by Turnock. At times, BPF had more than one hundred note-holders.
Turnock told prospective note-holders that by charging its clients interest rates higher than the rates at which note-holders were paid, BPF generated enough funds to pay principal and interest to note-holders. However, Turnock knew BPF had not been a profitable business since at least 1998 and since 2002 its financing of small businesses had not generated sufficient revenue to make interest payments to note-holders or to repay them. For each year from 2002 through 2011 and into 2012, the amount that BPF owed to note-holders exceeded the amount of money that BPF had on hand. During that time, Turnock used most of the money invested by note-holders for purposes other than to make loans to BPF’s clients. He used note-holders’ money to pay BPF-related expenses, and he also diverted the note-holders’ money to fund his other businesses, make loans to an entity involved in real estate transactions, pay fees to himself and pay personal expenses. He used money from new investments to pay redemptions requested by note-holders who had invested earlier and to make interest payments to earlier note-holders. Turnock also prepared false and misleading reports, which misrepresented BPF’s financial position.
In early 2012, a note-holder asked to withdraw a portion of his investment. Turnock misrepresented that $150,000 was available at that time. Because BPF did not have that much money, Turnock persuaded two other individuals to invest $500,000 in BPF. On the same day, Turnock used those funds to write a $150,000 check to the note-holder requesting the withdrawal. Turnock solicited and obtained the additional investment in an effort to continue to operate his scheme.
This case was investigated by the Federal Bureau of Investigation (FBI), the Internal Revenue Service – Criminal Investigation (IRS-CI), and the United States Postal Inspection Service.
This matter is being prosecuted by the Economic Crimes Section of the United States Attorney’s Office for the District of Colorado. The Asset Forfeiture was handled by Assistant U.S. Attorney Tonya Andrews.
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Colorado Springs Man Using "PerveyMcPerv" Screen Name Sentenced to 97 Months in Federal Prison for Possession of Child PornographyRead the Press Release
DENVER –Kevin Shea, age 43, of Colorado Springs, Colorado, was sentenced yesterday by U.S. District Court Judge Phillip A. Brimmer to serve 97 months (8 years) in federal prison for possession of child pornography, United States Attorney John Walsh and FBI Denver Special Agent in Charge Thomas Ravenelle announced. After serving his prison sentence, Judge Brimmer ordered Shea to serve 10 years on supervised release, and pay restitution totaling $7,000 to the victims of his crime. The defendant must also register as a sex offender. Shea, who was originally remanded after his guilty plea, appeared at today sentencing in custody. He was remanded following the hearing.
Shea was indicted by a federal grand jury in Denver on November 8, 2012. He pled guilty before Judge Brimmer on February 14, 2013. Shea was sentenced on July 8, 2013.
According to court records, on January 12, 2011, Shea possessed computer disks and other material that contained images of child pornography that had been shipped or transported in and affecting interstate and foreign commerce by any means, including by computer.
Specifically, according to an affidavit in support of a search warrant executed at the beginning of the case, the defendant used a peer-to-peer software program, using the name “pervymcperv”. He distributed 97 images of child pornography and 3 videos of child pornography. As a result of the search warrant, FBI agents seized two laptop computers and an external hard drive that combined contained approximately 4,838 images of child pornography including images of bondage and torture, and 228 videos featuring child pornography.
This case was investigated by the Federal Bureau of Investigation’s Violent Crimes Against Children Program.
Shea was prosecuted by Assistant U.S. Attorney Colleen Covell.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/ For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
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Clarksburg Police Officials Resign, Avoid Federal ProsecutionRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
CLARKSBURG, WEST VIRGINIA — The Chief of the Clarksburg Police Department and one of his Lieutenants have resigned in order to avoid being prosecuted for federal criminal charges.
United States Attorney William J. Ihlenfeld, II, announced today that former Chief Marshall Goff and former Lieutenant Tim Smith have quit the Clarksburg Police Department and thus will avoid being charged with civil rights violations and for making false statements to federal agents. The actions of Goff and Smith occurred after officers from their department responded to a report of an alleged domestic battery in Clarksburg in April of 2013 involving a city councilman. Goff and Smith became involved in the response and the actions that they took led to a separate investigation into their handling of the case.
The resignations of Goff and Smith are effective immediately and both men are barred from ever seeking or accepting employment as police officers again. Both men have also agreed to be cooperative and truthful in the ongoing investigation into the handling of the response to the alleged domestic.
A charge has been filed in the underlying domestic battery case and that matter is being handled in state court by a special prosecuting attorney.
The case involving Goff and Smith was investigated by the Federal Bureau of Investigation and the West Virginia State Police, BCI, both of which are members of the West Virginia Public Corruption Task Force. If the public has any information regarding this matter or other similar matters they may call the public corruption hotline at 1-855-WVA-FEDS (1-855-982-3337), or send an email to [email protected].
Cherry Creek Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Cherry Creek, South Dakota, man convicted of Assaulting, Resisting or Impeding a Federal Officer was sentenced on July 8, 2013, by U.S. District Judge Roberto A. Lange.
Kaleb Earl Hollow Horn, age 24, was sentenced to 12 months and 1 day of custody, followed by 1 year of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Hollow Horn was indicted by a federal grand jury on July 18, 2012, and pled guilty to a Superseding Indictment on April 16, 2013.
The conviction arose from a February 2012 incident in which Hollow Horn assaulted, resisted or impeded a Cheyenne River Sioux Tribe police officer who was arresting him for violating a tribal court order.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. The case was prosecuted by Assistant U.S. Attorney Mikal Hanson.
# # #Canton Man Charged with Theft of Firearms and Dealing Firearms Without A LicenseRead the Press Release
Oct. 18, 2013Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced that a federal grand jury returned a 12-count indictment charging Renard Torrence, age 50, of Canton, Ohio, with engaging in the business of dealing in firearms without a license and with theft of firearms from federal firearms licensees.
Count 1 of the indictment charges that from in or about April 2013, to in or about August 2013, Torrence dealt in firearms without being a federally licensed firearms dealer.
Counts 2 through 12 of the indictment charges that Torrence stole firearms from Federal Firearms Licensees as listed below.
COUNTDATE
FIREARM
FFL
2
April 11, 2013
Smith & Wesson, Model SD40VE, .40 pistol
MC Guns LLC,
Medina, OhioJune 11, 2013
Keltec, Model P11, 9mm pistol
All Seasons Sports Center, Inc., Wooster, Ohio
4
June 20, 2013
Bersa, Model Thunder, .380 pistol, and a Keltec, Model P11, 9mm pistol
Kames Sports Center, North Canton, Ohio
5
July 2, 2013
Smith & Wesson, Model SD9VE, 9mm pistol, and a Ruger, Model P89, 9mm pistol
Miller Gun Supply Ltd., Sugarcreek, Ohio
6
EAA, Model SARK2P, 9mm pistol, and a Smith & Wesson, Model SD9VE, 9mm pistol
Valley Gun & Collectables Inc., Strasburg, Ohio
7
July 17, 2013
Smith & Wesson, Model MP40, .40 pistol, and a Beretta, Model 92FS, 9mm pistol
Midwest Gun Club, Canal Fulton, Ohio
8
July 19, 2013
Glock, Model 21, .45 pistol, and a Keltec, model P32, .32 pistol
Pro Armament Co. Cuyahoga Falls, Ohio
9
July 25, 2013
Kahr, Model CW9, 9mm pistol, and a Smith & Wesson, Model SD40, .40 pistol
Top Gun Supply, Chesterland, Ohio
10
July 29, 2013
Smith & Wesson, Model MP9, 9mm pistol, and a Keltec, Model PF9, 9mm pistol
The Hunt’n Shack, Carrollton, Ohio
11
July 31, 2013
Smith & Wesson, Model SD9VE, 9mm pistol, and a Smith & Wesson, Model MP15, .223 rifle
Apex Powersports, New Philadelphia, Ohio
12
August 5, 2013
Taurus, Model PT92, 9mm pistol, a Smith & Wesson, Model MP40, .40 pistol, and a Marlin, Model 75C, .22 rifle
Top Shot Firearms LLC, Ravenna, Ohio
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Carroll County Sheriff’s Office. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment in only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
California Rapper Pleads Guilty to Bank Fraud Conspiracy, Access Device Fraud and Aggravated Identity TheftRead the Press Release
A California rap artist who performed under the name “Guerilla Black” pleaded guilty in U.S. District Court in Seattle today to a scheme where credit card numbers were stolen in Seattle and fraudulently used in other states, announced U.S. Attorney Jenny A. Durkan. CHARLES TONY WILLIAMSON, 33, of Torrance, California, conducted his criminal conduct under various names including: GUERILLA BLACK; MRBUSINESSMAN62; and BLACKDOLLA. WILLIAMSON was on the user end of the fraud involving hacks of point of sale credit card processing at businesses in Seattle and across the U.S. WILLIAMSON purchased credit card numbers in bulk via various ‘carding’ websites so that he and his associates could use them for fraud. WILLIAMSON will be sentenced by U.S. District Judge Ricardo S. Martinez on October 10, 2013.
WILLIAMSON was indicted in July 2012, following the investigation into point of sale hacking at a restaurant in the Magnolia neighborhood of Seattle and a retail store in Shoreline, Washington. Two men have already been sentenced for their roles in the hacking scheme. David Benjamin Schrooten, 21, a Dutch citizen arrested in Romania, where he operated a carding website making the credit card numbers available for fraud was sentenced in February 2012 to 12 years in prison. Christopher A. Schroebel, 21, of Keedysville, Maryland, who hacked into point of sale systems to steal credit card information was sentenced to seven years in prison in August 2012.
Between January 11, 2011 and February 26, 2012, WILLIAMSON received and possessed at least 27,257 stolen credit card numbers, including cards issued by American Express, Visa, MasterCard and Discover. Loss figures are as yet incomplete, but close to $150,000 in fraud loss has been attributed to just 134 of the over 27,000 card numbers stolen. The indictment alleges that WILLIAMSON communicated by email with co-conspirators, telling them that he wanted to purchase “dumps” of stolen credit card numbers “in bulk,” that is lots of 100, 500 or more. WILLIAMSON indicated that he wanted “freshly” stolen numbers so they would be easier to use, since the customers would not yet know their information had been stolen. While on release pending trial, WILLIAMSON continued his criminal conduct by producing counterfeit credit cards and using stolen credit card numbers and was rearrested following a lengthy investigation by Manhattan Beach Police Department and the U.S. Secret Service (USSS) Electronic Crimes Task Force in Seattle and USSS Los Angeles Fraud Task Force. In his plea agreement WILLIAMSON admits the credit card fraud both before and after his arrest on the indictment in the Western District of Washington. WILLIAMSON has remained in custody since his arrest in January 2013.
WILLIAMSON pleaded guilty to conspiracy and unauthorized access to a protected computer to facilitate fraud. Both are punishable by up to five years in prison and a $250,000 fine. WILLIAMSON also pleaded guilty to access device fraud which is punishable by up to 15 years in prison and a $250,000 fine. He pleaded guilty to bank fraud which is punishable by up to 30 years in prison and a $1,000,000 fine and he pleaded guilty to aggravated identity theft which is punishable by a mandatory minimum two years in prison consecutive to any other sentence imposed in the case.
The case is being investigated by the Seattle U.S. Secret Service Electronic Crimes Task Force and Seattle Police Department as part of the Task Force, with assistance provided by the Manhattan Beach (California) Police Department and the Los Angeles Field Office, U.S. Secret Service. The case is being prosecuted by Assistant United States Attorney Kathryn Warma.
California Man Pleads Guilty for Planning to Distribute Crack Cocaine and Marijuana in MinnesotaRead the Press Release
MINNEAPOLIS—Yesterday in federal court in St. Paul, a 31-year-old man from Sacramento, California, pleaded guilty to conspiring to distribute crack cocaine and marijuana in Minnesota. Demar Deshawn Powell pleaded guilty to one count of conspiracy to distribute or possess with intent to distribute controlled substances. Powell, who was indicted on May 13, 2013, entered his plea before United States District Court Judge Susan Richard Nelson. In his plea agreement, Powell admitted that on September 21, 2012, he received a package containing controlled substances, which he intended to distribute.
On September 20, 2012, a suspicious package came into the Minneapolis-St. Paul International Airport. Authorities utilized a drug-sniffing dog, which alerted to narcotics in the package. During the subsequent execution of a search warrant on the parcel, which was being shipped from Sacramento to a Bloomington address, authorities found approximately 279 grams of crack cocaine and 111 grams of marijuana hidden inside a child’s potty seat. The next day, law enforcement delivered the package to the Bloomington address. Police then arrested Powell when he claimed the parcel. Powell admitted that he conspired with the package’s sender to receive the package and sell the drugs to customers in Minnesota.For his crime, Powell faces a potential maximum penalty of 40 years in prison, with a mandatory minimum penalty of five years. Judge Nelson will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the U.S. Postal Inspection Service, the Bloomington Police Department, and the Minneapolis-St. Paul International Airport Police Department, with cooperation from the Sacramento County Sheriff’s Office in California. The case is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.Buckhannon Resident Enters Plea to Possession of Firearms by an Alien Illegally in the United StatesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
ELKINS, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II, announced that a 33 year old Buckhannon, West Virginia, resident entered a plea of guilty in United States District Court in Elkins on July 9, 2013, before Magistrate Judge John S. Kaull.
RODOLFO VILLAGOMEZ CORREA a/k/a “CHINO,” entered a plea of guilty to “Possession of Firearms by an Alien Illegally in the United States.” As part of his plea agreement, CORREA will abandon to the United States Department of Homeland Security all right, title, interest and claim to 16 firearms, a counterfeit Resident Alien Card, a counterfeit Permanent Resident Card, and other items seized from the defendant on July 25,
2012. CORREA faces up to 10 years imprisonment and a $250,000 fine. He was returned back to the custody of the State of West Virginia, where he has been charged by criminal complaint with murder.This case was prosecuted by Assistant United States Attorney Stephen D. Warner and investigated by U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE/HSI), the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Forest Service.
Brantley County Man Sentenced to over 21 Years in Prison for Drug Trafficking and Insurance FraudRead the Press Release
BRUNSWICK, GA – Gerald Roberson, 46, of Nahunta, Georgia, was sentenced today by United States Chief District Judge Lisa Godbey Wood to 262 months in prison for his roles in a drug trafficking conspiracy and an insurance fraud scheme.
During the guilty plea and sentencing hearings, the evidence showed that Roberson was a leader of a conspiracy that stretched from Georgia, to Texas, to Mexico, and involved over 1,000 pounds of marijuana, over 50 pounds of methamphetamine, and an untold number of prescription drugs. In addition, Roberson helped commit an arson in an effort to defraud insurance companies of over $58,000 in claims.
Chief Judge Wood earlier sentenced two additional Brantley County residents for their roles in the criminal conduct. Harold Lee Ragland, 48, was sentenced on July 2, 2013, to 18 years in prison for his role in the drug trafficking conspiracy and insurance fraud scheme. Decia Roberson, 45, was sentenced to 44 months for her role in the drug trafficking conspiracy. Decia Roberson is the ex-wife of Gerald Roberson.
The case was investigated by the DEA, the GBI, and the Brantley County Sheriff’s Office. Assistant U.S. Attorney Carlton Bourne prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Bedford County Man Indicted on Firearms ViolationRead the Press Release
Prosecution is part of Project Safe Neighborhoods Initiative
JOHNSTOWN, Pa. - A resident of Schellsburg, Pa. has been indicted by a federal grand jury in Pittsburgh on a charge of possession of an unregistered destructive device, United States Attorney David J. Hickton announced today.
The indictment named Stephen Edward Weaver, 55, as the sole defendant.
According to the indictment presented to the court, on June 5, 2011, Weaver was in possession of unregistered destructive devices, specifically two pipe bombs.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Pennsylvania State Police, Troop G Barracks, Bedford Barracks and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the indictment in this case.
According to Mr. Hickton, Weaver is being 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.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bank Employee Among a Dozen Indicted for Stealing $650,000Read the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a UMB Bank employee along with 11 friends and family members has been indicted by a federal grand jury for embezzling more than $650,000 in a bank fraud conspiracy.
Lisa L. Taylor, 53, Kara L. Williams, 32, Shameeka N. Whitehead, 30, Rodney C. Austin, 48, Johnnie L. Coleman, 51, Roshana A. Franklin, 21, Antonio O. Malone, 25, and Ralph Broadus, 58, all of Kansas City, Mo., William D. Moore, 23, of Grandview, Mo., Stephen A. Combs, 26, and Geoffrey N. King, 29, both of Olathe, Kan., and Lakisha S. Weathers, 28, of Springfield, Mo., were charged in a 44-count indictment that was returned under seal by a federal grand jury in Kansas City, Mo., on June 20, 2013. That indictment was unsealed and made public upon the arrests and initial court appearances of several defendants on Monday, July 8, 2013.
The federal indictment alleges that Taylor, who was employed by UMB Bank from May 2006 until October 2010, used her position to generate 377 fraudulent bank checks totaling $650,659, payable to her co-defendants and others in a fraud scheme that lasted virtually the entire time she worked at the bank.
According to the indictment, Taylor was employed at UMB as a closing account specialist. Taylor’s duties included collecting amounts that were charged off when a customer’s account was closed. Occasionally a closed account would receive a deposit via an automatic deposit or otherwise, after it had been closed. Taylor’s job duties required her to request a bank check to refund any deposit amount in excess of any charged off amount in the closed account. Taylor was required to submit this request for approval of a bank check to a bank officer, who would approve issuance of a bank check for the refund amount which would then be mailed to the customer’s last known address.
Taylor allegedly used her position at the bank to generate fraudulent UMB checks made payable to her friends, family members and others, including her codefendants. She submitted false and fraudulent requests for approval of the bank checks to UMB bank officers, the indictment says. Conspirators allegedly kept a portion of the funds from the UMB bank checks and returned a portion of the funds to Taylor, Williams, Whitehead or others.
Each of the 12 defendants is charged with participating in a bank fraud conspiracy from May 2006 until October 2010. Various defendants are also charged in 43 additional counts of bank fraud related to cashing fraudulent checks.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jess E. Michaelsen. It was investigated by the U.S. Secret Service.Albuquerque Man Arraigned on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – James Olsson, 60, of Albuquerque, N.M., was arraigned this morning on a two-count indictment charging him with possession of visual depictions of minors engaged in sexually explicit conduct. Olsson entered a not guilty plea and was ordered detained pending trial.
The indictment charges Olsson with possessing child pornography on April 11, 2013, in Bernalillo County, N.M. According to court filings, on that day, a state probation officer learned that Olsson possessed child pornography during a routine field visit with Olsson at his residence. Olsson was arrested on state charges and has been in state custody until he was transferred to federal custody on June 26, 2013, to face the charges in the indictment.
If convicted, Olsson faces a maximum prison sentence of not less than ten years and not more than 20 years on each of the two possession of child pornography charges. Olsson faces this enhanced sentence because he previously has been convicted of a child pornography offense. The indictment against Olsson is merely an accusation and he is presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the FBI, the Bernalillo County Sheriff’s Office and the New Mexico Corrections Department Probation and Parole. The case is being prosecuted by Assistant U.S. Attorney Charlyn E. Rees 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/.
The case also was brought as part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
A. Lee Bentley, III to Serve as Acting United States Attorney for the Middle District of FloridaRead the Press Release
Lee Bentley became the Acting United States Attorney for the Middle District of Florida following the departure of U.S. Attorney Robert E. O’Neill on July 8, 2013. Previously, Mr. Bentley served as the First Assistant to U.S. Attorney O’Neill. Mr. Bentley has been an Assistant United States Attorney in the Middle District of Florida since 2000. Prior to that, he worked at the law firm of Hogan & Hartson in Washington, DC as an associate (1990-1992) and a partner (1993-2000). Mr. Bentley also has served as a Special Assistant United States Attorney in the Southern District of Florida (Miami), an Attorney-Advisor in the Office of Legal Counsel, Department of Justice (Washington, DC), a law clerk to Hon. Lewis F. Powell, Jr., United States Supreme Court (Washington, DC), and a law clerk to Hon. Clement F. Haynsworth, Jr., United States Court of Appeals for the Fourth Circuit (Greenville, South Carolina). He graduated with highest honors from the University of Georgia (1980) and the University of Virginia School of Law (1983).
Monday 8 July 2013
Woodburn Man Sentenced to 108 Months in Federal Prison for Drug, Firearms, Food Stamp Fraud, and Illegal Reentry CrimesRead the Press Release
PORTLAND, Ore. – U.S. District Court Judge Michael W. Mosman today sentenced Albino Miranda Camarillo, 44, of Woodburn, Oregon, to 108 months in prison for possession with intent to distribute methamphetamine, felon in possession of firearms, food stamp fraud, and illegal reentry by a deported alien.
Portland FBI, ICE, and ATF agents, in conjunction with the South Metro Gang Task Force, consisting of Hillsboro Police, Woodburn Police, Canby Police, Oregon City Police, and Department of Agriculture Special Agents began investigating the drug trafficking activities of a person referred to as “JoJo.” Agents learned that Albino Miranda Camarillo was a Mexican citizen who had prior criminal convictions in 1990 and 1994 in Madera County, California, for transporting narcotics for sale, and that he had been deported after serving prison sentences.
An undercover investigation identified a storage locker, several vehicles, and a home in Woodburn after buying drugs from Camarillo. A financial investigation revealed that Camarillo was collecting food stamp benefits while claiming to be unemployed and the head of a family of five.
A Canby Detective sought seizure warrants to seize cash deposited in bank accounts by defendant totaling $28,504.22, which was later forfeited as unlawfully obtained food stamp benefits, since defendant Camarillo failed to declare his drug trafficking income on his State of Oregon benefit claims. Upon his arrest, defendant’s premises and were vehicles searched, and his bank accounts seized. On November 15, 2012, Camarillo pled guilty to four federal crimes and agreed to a sentence of 108 months in federal prison. At the time of his release he will be deported to Mexico. Should Camarillo illegally return to the United States after serving his federal prison sentence he will be subject to additional prosecution for immigration offenses.
Assistant U. S. Attorney John Haub prosecuted the case.
Woman Pleads Guilty to Theft of Government PropertyRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces that Kayla M. Noble, a student at Florida A&M University in Tallahassee, pleaded guilty today to one count of theft of government property. Noble faces a maximum penalty of ten years in federal prison. As part of her plea agreement, she agreed to forfeit to the United States $102,237 representing the proceeds obtained as a result of the offense.
According to the plea agreement, in September and October 2011, Noble participated in a scheme to defraud the United States Treasury. As part of the scheme, fraudulently-obtained federal income tax refunds were deposited into her checking and savings accounts. For her role in the scheme, Noble was compensated with a portion of the proceeds. In total, twelve fraudulent income tax refunds totaling $102,237 were deposited into her bank accounts.
This case was investigated by the Internal Revenue Service Criminal Investigation. It is being prosecuted by Assistant United States Attorney Matthew J. Mueller.
US Joins False Claims Act Lawsuit Alleging<br /> Illegal Physician Compensation by Mobile, Ala., Health FirmRead the Press Release
The government has intervened in a False Claims Act lawsuit against Infirmary Health System Inc. and its related entities: IMC-Diagnostic and Medical Clinic P.C., Diagnostic Physicians Group P.C. and Infirmary Medical Clinics P.C., the Department of Justice announced today. The lawsuit alleges that IMC-Diagnostic and Medical Clinic, in Mobile, Ala., billed Medicare for services referred by Diagnostic Physicians Group physicians, in violation of the Stark Law and Anti-Kickback Statute. IMC-Diagnostic and Medical Clinic is owned by Infirmary Medical Clinics, a subsidiary of Infirmary Health System, also based in Mobile.
“Financial arrangements that compensate physicians for referrals encourage physicians to make decisions based on financial gain rather than patient needs,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division. “The Department of Justice is committed to preventing illegal financial relationships that corrupt the integrity of our public health programs.”Enforcement of the Stark Law and the Anti-Kickback Statute is intended to ensure that physicians’ medical judgment is not compromised by improper financial incentives. The Stark Law forbids a clinic or hospital from billing Medicare for certain services referred by physicians who have a financial relationship with the entity. The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of services or items covered by federal health care programs, including Medicare. The lawsuit alleges that the IMC-Diagnostic and Medical Clinic improperly paid Diagnostic Physicians Group physicians compensation that included a percentage of the money collected from Medicare for tests and procedures the doctors referred to the clinic. These improper payments, and resulting submission of false claims to the Medicare program, violated the Stark Law and Anti-Kickback Statute.
“The Stark Law and Anti-Kickback Statute were enacted to prevent financial ties from influencing the level of care provided to patients,” said Kenyen Brown, U.S. Attorney for the Southern District of Alabama. “By bringing cases such as this one against Infirmary Health System, we hope to ensure that precious health care resources are not wasted due to improper financial relationships among health care providers.”
The lawsuit was filed in July 2011 by former Diagnostic Physicians Group physician, Dr. Christian Heesch, under the qui tam, or whistleblower, provisions of the False Claims Act, which authorize private parties to sue on behalf of the U.S. and receive a portion of any recovery. The act also permits the government to intervene and take over a lawsuit, as it has done in this case.The government’s intervention in this lawsuit illustrates its emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $14.7 billion through False Claims Act cases, with more than $10.7 billion of that amount recovered in cases involving fraud against federal health care programs.
The government’s investigation has been a coordinated effort by the Department of Justice, Civil Division, Commercial Litigation Branch; the U.S. Attorney’s Office for the Southern District of Alabama; the Department of Health and Human Services Office of Inspector General; and the FBI. The government has 30 days to file and serve a superseding complaint in this matter.
The case is captioned U.S. ex rel. Heesch v. Diagnostic Physicians Group, P.C. et al., Civil Action No. 11-0364-KD-B (S.D. Ala.). The claims in the complaint are allegations only; there has been no determination of liability.U.S. Joins False Claims Act Lawsuit Alleging Illegal Physician Compensation by Mobile, AL. Health FirmRead the Press Release
WASHINGTON – The government has intervened in a False Claims Act lawsuit against Infirmary Health System Inc. and its related entities: IMC-Diagnostic and Medical Clinic P.C., Diagnostic Physicians Group P.C. and Infirmary Medical Clinics P.C., the Department of Justice announced today. The lawsuit alleges that IMC-Diagnostic and Medical Clinic, in Mobile, Ala., billed Medicare for services referred by Diagnostic Physicians Group physicians, in violation of the Stark Law and Anti-Kickback Statute. IMC-Diagnostic and Medical Clinic is owned by Infirmary Medical Clinics, a subsidiary of Infirmary Health System, also based in Mobile.
“Financial arrangements that compensate physicians for referrals encourage physicians to make decisions based on financial gain rather than patient needs,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division. “The Department of Justice is committed to preventing illegal financial relationships that corrupt the integrity of our public health programs.”
Enforcement of the Stark Law and the Anti-Kickback Statute is intended to ensure that physicians’ medical judgment is not compromised by improper financial incentives. The Stark Law forbids a clinic or hospital from billing Medicare for certain services referred by physicians who have a financial relationship with the entity. The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of services or items covered by federal health care programs, including Medicare. The lawsuit alleges that the IMC-Diagnostic and Medical Clinic improperly paid Diagnostic Physicians Group physicians compensation that included a percentage of the money collected from Medicare for tests and procedures the doctors referred to the clinic. These improper payments, and resulting submission of false claims to the Medicare program, violated the Stark Law and Anti-Kickback Statute.
“The Stark Law and Anti-Kickback Statute were enacted to prevent financial ties from influencing the level of care provided to patients,” said Kenyen Brown, U.S. Attorney for the Southern District of Alabama. “By bringing cases such as this one against Infirmary Health System, we hope to ensure that precious health care resources are not wasted due to improper financial relationships among health care providers.”
The lawsuit was filed in July 2011 by former Diagnostic Physicians Group physician, Dr. Christian Heesch, under the qui tam, or whistleblower, provisions of the False Claims Act, which authorize private parties to sue on behalf of the U.S. and receive a portion of any recovery. The act also permits the government to intervene and take over a lawsuit, as it has done in this case.
The government’s intervention in this lawsuit illustrates its emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $14.7 billion through False Claims Act cases, with more than $10.7 billion of that amount recovered in cases involving fraud against federal health care programs.
The government’s investigation has been a coordinated effort by the Department of Justice, Civil Division, Commercial Litigation Branch; the U.S. Attorney’s Office for the Southern District of Alabama; the Department of Health and Human Services Office of Inspector General; and the FBI. The government has 30 days to file and serve a superseding complaint in this matter.
The case is captioned U.S. ex rel. Heesch v. Diagnostic Physicians Group, P.C. et al., Civil Action No. 11-0364-KD-B (S.D. Ala.). The claims in the complaint are allegations only; there has been no determination of liability.
Two Sentenced to Prison for Arson That Killed Kansas State ResearcherRead the Press Release
TOPEKA – Two people have been sentenced to federal prison for setting a fire that killed a woman in an apartment complex in Manhattan, Kan., U.S. Attorney Barry Grissom said today.
Patrick Martin Scahill, 20, Manhattan, Kan., was sentenced to 30 years. Virginia Amanda Griese, 20, Manhattan, Kan., was sentenced to 20 years.
Both of them pleaded guilty to one count of arson resulting in death. In his plea, Scahill admitted he started the Feb. 6, 2013, fire at the Lee Crest Apartments at 820 Sunset Avenue in Manhattan that caused the death of Kansas State researcher Vasanta Pallem. Scahill admitted he started the fire in an effort to create a diversion that would prevent police from finding evidence in his residence of an armed robbery and other crimes.
“This case is a tragic story,” said U.S. Attorney Barry Grisom. “A promising young woman who came to the United States to further her education died in a fire deliberately set by a young man who gave no thought to her or the other people whose lives he was endangering.”
“Arson is a violent crime with often devastating results. In this case, a life was lost,” said ATF Special Agent in Charge Marino F. Vidoli. “ATF is proud to have worked with our state and local partners to bring these defendants to justice.”
The sequence of events began in the late evening hours of Feb. 5 when Scahill’s associates, Frank Joseph Hanson and Dennis James Denzien, conspired to commit a robbery at Dara’s Fast Lane, a convenience store in Manhattan. Early in the morning hours of Feb. 6, Hanson and Denzien robbed Dara’s Fast Lane. Denzien was the driver. Hanson entered the store brandishing a .22 caliber pistol owned by Scahill.
At about 6 p.m. that day, Riley County Police were dispatched to a disturbance call and knocked on the door of the residence where Scahill lived. Denzien and Hanson also were at the residence when police arrived. After police noticed a strong odor of marijuana from the residence, they told Scahill and the others they were going to seek a warrant to search the residence. Scahill, Denzien and Hanson left the residence while police were working to obtain a warrant.
Meeting together later, Scahill, Denzien, Hanson and Griese discussed the likelihood that police would find narcotics, a firearm and items associated with the robbery at Dara’s Fast Lane once they searched Scahill’s residence. They discussed ways to divert the attention of law enforcement officers long enough for Scahill to re-enter the residence and remove the incriminating evidence.
In the end, Griese, a friend named Gavin Hairgrove, and another person, drove to a Walmart where Griese bought a five-gallon gas can. Then they went to a HyVee gas station where Hairgrove worked and Griese pumped 4.7 gallons of gas into the can. She paid for it with her debit card.
Later, Scahill and Griese drove around looking for something to burn. They chose the Lee Crest Apartments, a three-level, 12-unit apartment complex within sight of Scahill’s apartment. Scahill entered the building. He emptied the contents of the gas can in the lower level hallway, set the fire and left the building.
As the fire burned, a thick, black smoke rose through the building, forcing tenants out of their apartments through windows and out of balconies. Vasanta Pallem was unable to escape the building. She worked her way from her apartment on the top floor of the building to the first floor where she died near the east entrance of the complex. An autopsy showed she died from breathing fumes during the fire. The carbon monoxide saturation in her system was over 50 percent, more than enough to kill her.
After setting the fire, Scahill and Griese went to Griese’s apartment where Scahill cleaned up and discarded clothes soaked in gasoline. Hairgrove assisted Scahill in disposing of his shoes, which reeked of gasoline.
Later, investigators looking into the arson received tips that led them to Scahill.
Other defendants include:
Frank Joseph Hanson, 23, Manhattan, Kan., who has pleaded guilty and is set for sentencing Aug. 12.
Dennis James Denzien, 20, Manhattan, Kan., who pleaded guilty and is set for sentencing Aug. 12.
Gavin Taylor Hairgrove, 19, Manhattan, Kan., who is awaiting trial.Grissom commended all the investigators and law enforcement agencies that worked on the case, including the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Riley County Attorney’s Office, the Riley County Police Department, the Manhattan Fire Department, the Kansas State Fire Marshal’s Office, the Kansas Bureau of Investigations and the Pottawatomie County Sheriff’s Office, as well as Assistant U.S. Attorney Jared Maag, Special Assistant U.S. Attorney Barry Wilkerson and Special Assistant U.S. Attorney Barry Disney, who are prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Tax Defier Chester Evans Davis Sentenced to 97 Months in PrisonRead the Press Release
PORTLAND, Ore. — U.S. District Court Judge Michael Simon today sentenced Chester Evans Davis, 56, of Oregon City, to 97 months in federal prison, to be followed by three years of supervised release. In March 2013, a federal jury convicted Davis of five counts of tax evasion, four counts of failure to file a corporate tax return, and one count of obstructing the internal revenue laws. At the sentencing hearing, the government presented evidence that Davis currently owes over $7 million in state and federal income taxes, and Judge Simon ordered Davis to pay his taxes and to file timely tax returns in the future.
“This defendant took extraordinary measures to hide his money,” said U.S. Attorney S. Amanda Marshall. “He refused to pay his fair share of taxes, to the detriment of all taxpayers, but now he will be repaying his debt to society for a very long time.”
“There are a number of strategies we often see people use when they try to get away with tax evasion,” said Kenneth J. Hines, Special Agent in Charge of IRS Criminal Investigation in the Pacific Northwest. “Mr. Davis tried a lot of them. He filed frivolous lawsuits, false documents with the IRS, and false and harassing claims against IRS personnel. He used alternative ‘banks’ to conceal his finances and nominees to disguise his business activities. These strategies all have one thing in common - they result in criminal conviction.”
Davis is the former owner and president of ESA International (formerly ESA NW, Inc.), a Gladstone engineering firm specializing in power system software. Davis’ company earned millions of dollars in annual revenue, including revenue from federal government agencies such as the U.S. Air Force, the Army Corps of Engineers, and Bonneville Power Administration. Davis transferred money from his company to various shell corporations and a warehouse bank, and then used the money to purchase more than $5 million in gold bars and coins. In response to the IRS audit, Davis sought to harass IRS employees, by filing arrest warrants against them, by filing liens, and by filing bogus Forms 1099-OID representing that he had paid income to IRS employees, as well as others.
Special Agents with Internal Revenue Service (IRS) Criminal Investigation seized over $1 million of Davis’ gold while executing search warrants at Davis’ residence and business, but the unaccounted-for gold is worth more than $7 million. While executing search warrants, IRS Criminal Investigation Special Agents found and seized over $1 million of Davis’ gold and approximately $115,000 in cash, much of which Davis hid in Bazooka tubes in his and a family member's home. In Davis' home, agents also found thirty-nine firearms, body armor, tactical gear, sniper training materials, survival manuals, and anti-government literature.
This case stemmed from an investigation by Internal Revenue Service Criminal Investigation. The case was prosecuted by Assistant U.S. Attorneys Craig Gabriel and Stacie Beckerman.
Suwannee County Man Sentenced to 18 Months in Federal Prison for Failing to Register as Sex OffenderRead the Press Release
Jacksonville, Florida - United States District Judge Marcia Morales Howard today sentenced Denny Junior Jenkins (42, Live Oak) to 18 months in prison for failing to register as sex offender in the state of Florida, after traveling from the state of South Carolina. Jenkins was also ordered to serve a 10-year term of supervised release following his prison sentence. He pleaded guilty on March 18, 2013.
According to court documents, on September 4, 1992, Jenkins was convicted in Suwannee County, Florida of two counts of attempted sexual battery upon a child under 12 years of age. Because of these convictions, Jenkins is required to register as a sex offender under Florida law for the remainder of his life. After being released from prison, Jenkins received and executed documents that advised him of these conditions.
Court documents show that, in 2010, Jenkins changed his residence to the state of South Carolina and executed documents that advised, among other things, that if he moved to another state he must register as a sex offender in that state. In April 2012, Jenkins left South Carolina and moved back to Florida and established residence in Suwannee County. According to court documents, after establishing residence in Florida in April 2012, Jenkins was required to register and keep his registration current with the state of Florida under the Sex Offender Registration and Notification Act (SORNA). He failed to do so. On February 15, 2013, Jenkins was arrested and stated, among other things, that he moved from South Carolina to Florida in April 2012 and acknowledged that he did not register as a sex offender.
This case was investigated by the United States Marshals Service, the Suwannee County Sheriff’s Office, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney D. Rodney Brown.It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc for more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Supervisor of $63 Million Health Care Fraud Scheme <br /> Sentenced in Florida to 10 Years in PrisonRead the Press Release
A former supervisor at defunct health provider Health Care Solutions Network Inc. (HCSN) was sentenced today in Miami to serve 10 years in prison for her central role in a fraud scheme that resulted in more than $63 million in fraudulent claims to Medicare and Florida Medicaid.
The sentence was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Special Agent in Charge of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
Wondera Eason, 51, of Miami, was sentenced by U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida. In addition to her prison term, Eason was sentenced to serve three years of supervised release and ordered to pay $14,985,876 in restitution.
On April 25, 2013, a federal jury found Eason guilty of conspiracy to commit health care fraud.
Eason was employed as the director of medical records at HCSN’s partial hospitalization program (PHP). A PHP is a form of intensive treatment for severe mental illness. In Florida, HCSN operated community mental health centers at two locations. After stealing millions from Medicare and Medicaid in Florida, HCSN’s owner, Armando Gonzalez, expanded the scheme to North Carolina, opening a third HCSN location in Hendersonville, N.C.
Evidence at trial showed that at all three locations, Eason, a certified medical records technician, oversaw the alteration, fabrication and forgery of thousands of documents that purported to support the fraudulent claims HCSN submitted to Medicare and Medicaid. Many of these medical records were created weeks or months after the patients were admitted to HCSN facilities in Florida for purported PHP treatment and were utilized to support false and fraudulent billing to government-sponsored health care benefit programs, including Medicare and Medicaid. Eason directed therapists to fabricate documents, and she also forged the signatures of therapists and others on documents that she was in charge of maintaining. Eason interacted with Medicare and Medicaid auditors, providing them with false and fraudulent documents, while certifying the documents were accurate.
The “therapy” at HCSN oftentimes consisted of nothing more than patients watching Disney movies, playing bingo and having barbeques. Eason directed therapists to remove any references to these recreational activities in the medical records.
According to evidence at trial, Eason was aware that HCSN in Florida paid illegal kickbacks to owners and operators of Miami-Dade County assisted living facilities (ALF) in exchange for patient referral information to be used to submit false and fraudulent claims to Medicare and Medicaid. Eason also knew that many of the ALF referral patients were ineligible for PHP services because many patients suffered from mental retardation, dementia and Alzheimer's disease.
From 2004 through 2011, HCSN billed Medicare and the Medicaid program more than $63 million for purported mental health services.
Fifteen defendants have been charged and have pleaded guilty or been convicted by a jury for their roles in the HCSN health care fraud scheme.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case was prosecuted by Trial Attorney Allan J. Medina, former Special Trial Attorney William Parente and Deputy Chief Benjamin D. Singer 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.
Supervisor of $63 Million Health Care Fraud Scheme Sentenced in Florida to 10 Years in PrisonRead the Press Release
A former supervisor at defunct health provider Health Care Solutions Network Inc. (HCSN) was sentenced today in Miami to serve 10 years in prison for her central role in a fraud scheme that resulted in more than $63 million in fraudulent claims to Medicare and Florida Medicaid.
The sentence was announced by U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; Michael B. Steinbach, Special Agent in Charge of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
Wondera Eason, 51, of Miami, was sentenced by U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida. In addition to her prison term, Eason was sentenced to serve three years of supervised release and ordered to pay $14,985,876 in restitution.
On April 25, 2013, a federal jury found Eason guilty of conspiracy to commit health care fraud.
Eason was employed as the director of medical records at HCSN’s partial hospitalization program (PHP). A PHP is a form of intensive treatment for severe mental illness. In Florida, HCSN operated community mental health centers at two locations. After stealing millions from Medicare and Medicaid in Florida, HCSN’s owner, Armando Gonzalez, expanded the scheme to North Carolina, opening a third HCSN location in Hendersonville, N.C.
Evidence at trial showed that at all three locations, Eason, a certified medical records technician, oversaw the alteration, fabrication and forgery of thousands of documents that purported to support the fraudulent claims HCSN submitted to Medicare and Medicaid. Many of these medical records were created weeks or months after the patients were admitted to HCSN facilities in Florida for purported PHP treatment and were utilized to support false and fraudulent billing to government-sponsored health care benefit programs, including Medicare and Medicaid. Eason directed therapists to fabricate documents, and she also forged the signatures of therapists and others on documents that she was in charge of maintaining. Eason interacted with Medicare and Medicaid auditors, providing them with false and fraudulent documents, while certifying the documents were accurate.
The “therapy” at HCSN oftentimes consisted of nothing more than patients watching Disney movies, playing bingo and having barbeques. Eason directed therapists to remove any references to these recreational activities in the medical records.
According to evidence at trial, Eason was aware that HCSN in Florida paid illegal kickbacks to owners and operators of Miami-Dade County assisted living facilities (ALF) in exchange for patient referral information to be used to submit false and fraudulent claims to Medicare and Medicaid. Eason also knew that many of the ALF referral patients were ineligible for PHP services because many patients suffered from mental retardation, dementia and Alzheimer's disease.
From 2004 through 2011, HCSN billed Medicare and the Medicaid program more than $63 million for purported mental health services.
Fifteen defendants have been charged and have pleaded guilty or been convicted by a jury for their roles in the HCSN health care fraud scheme.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case was prosecuted by Trial Attorney Allan J. Medina, former Special Trial Attorney William Parente and Deputy Chief Benjamin D. Singer 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.
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.
Stamford Man Sentenced to More Than Seven Years in Federal Prison for Possessing Stolen FirearmRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that LONNIE WILLIAMS, 27, of Stamford, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 92 months of imprisonment, followed by three years of supervised release, for possessing a stolen firearm.
According to court documents and statements made in court, in July 2012, WILLIAMS stored a stolen Glock 9mm handgun, loaded with seven rounds of ammunition, in the base of a tree in park in Stamford.
WILLIAMS has been detained since his arrest on September 24, 2012. On April 8, 2013, he pleaded guilty to one count of possession of a stolen firearm.
WILLIAMS’s criminal history includes multiple felony convictions.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Stamford Police Department. The case was prosecuted by Assistant United States Attorneys Vanessa Williams and Rahul Kale.
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[email protected]St. Jude's Pharmacy Owner & Wife Indicted on Federal ChargesRead the Press Release
Fort Myers, Florida - United States Attorney Robert E. O'Neill announces the return of an indictment charging Cape Coral residents Jorge Otano (51) and his wife, Martha Otano (41). Jorge Otano, the owner of the former St. Jude's Pharmacy in Cape Coral, is charged with conspiracy to distribute oxycodone, a controlled substance outside the usual course of professional practice and for other than legitimate medical purposes. In addition, Jorge and Martha Otano (vice-president of the former St. Jude's Pharmacy) are both charged with conspiring to evade the reporting requirements of the Bank Secrecy Act, as part of a pattern of illegal activity involving more than $100,000 in a 12-month period. They are each also charged with three substantive counts of structuring transactions to evade the reporting requirements.
If convicted of conspiring to distribute a controlled substance, Jorge Otano faces a maximum penalty of twenty years in federal prison. If convicted of conspiring to structure deposits to evade reporting requirements, they each face a maximum penalty of five years in federal prison. Each structuring transactions to evade reporting requirements charge carries a maximum penalty of ten years in federal prison. The indictment also notifies both that the United States intends to forfeit $750,525.17 that was seized during the course of the investigation, computer equipment used to facilitate the crime, a house in Cape Coral, and two vehicles which are alleged to be traceable to proceeds of the offense. In addition, the United States is seeking a money judgment in the amount of $430,000.00, as additional proceeds of the crimes charged in the indictment.
According to the indictment, Jorge and Martha Otano were registered pharmacy technicians and operators of St. Jude's Pharmacy in Cape Coral. From approximately August 2009 until November 15, 2012, Jorge Otano conspired with others to possess with intent to distribute, and distribute oxycodone outside the usual course of professional practice and for other than legitimate medical purposes. In addition, Jorge and Martha Otano made cash deposits, including deposits of illegal proceeds, into domestic financial institutions in amounts of $10,000 or less in order to avoid triggering bank reporting requirements. The Otanos allegedly made multiple deposits below the reporting requirement at multiple banks on the same day and at the same branch on successive days. The indictment alleges that they made in excess of $100,000 in structured cash deposits in one year.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Secret Service and the Drug Enforcement Administration. It will be prosecuted by Assistant United States Attorneys David G. Lazarus and Yolande G. Viacava.
Sister and Brother Drug Distribution Team Sentenced to Prison for Dealing Narcotic Pain KillersRead the Press Release
A brother and sister team has been sentenced to prison for their scheme to ship narcotics from the Los Angeles area for distribution in Seattle, announced U.S. Attorney Jenny A. Durkan. ROBIN BROWN, 52, of Los Angeles, California was sentenced today in U.S. District Court in Seattle to 62 months in prison and four years of supervised release for conspiracy to distribute oxycodone. BROWN’s brother, Terrell Brown, was sentenced last month to 37 months in prison and three years of supervised release for his role in the drug distribution scheme. At sentencing today U.S. District Judge James L. Robart noted the inherent danger of oxycodone abuse.
According to records filed in the case, BROWN and her brother came to the attention of Postal Inspection Service Investigators when an alert postal employee reported numerous express mail packages being delivered to Terrell Brown’s Seattle apartment. A records review showed more than 90 express mail packages sent from Los Angeles to the Seattle apartment in a one year period. Apartment managers confirmed that Terrell Brown received multiple express mail packages each week and had just purchased a new Cadillac Escalade despite reporting little income. In July 2012, investigators served a search warrant on a package destined for Brown and found 210 pills of 30 mg oxycodone. Even as they were executing a search warrant on Terrell Brown’s apartment another package arrived with another 240 pills of oxycodone.
ROBIN BROWN pleaded guilty on March 14, 2013. Terrell Brown pleaded guilty on March 28, 2013.
ROBIN BROWN has multiple prior criminal convictions in Washington and California. In asking for a lengthy prison term for BROWN prosecutors noted that oxycodone abuse is a significant problem in the community. “Overdoses of oxycodone and other prescription opiates are a leading cause of death in King County…. In 2000, there were 13 deaths in King County from oxycodone overdoses. That number increased steadily over the next nine years, with 60 deaths directly attributable to oxycodone in 2009. Oxycodone was present (but not necessarily the sole cause) in 104 deaths in 2009, as opposed to just 26 in 2000,” prosecutors wrote in their sentencing memo.
The case was investigated by the U.S. Postal Inspection Service and was prosecuted by Assistant United States Attorney Justin Arnold.