Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 2 July 2013
Four Floridians in Fraudulent Prisoner Income Tax Refund Scheme Sentenced to PrisonRead the Press Release
PENSACOLA, FLORIDA – United States Attorney Pamela C. Marsh announced that the sentencing of four Floridians by Chief U. S. District Judge M. Casey Rodgers concluded today with the last defendant. William Scott Folk (36) and Christopher Jesse Lee (35) both currently incarcerated with the Florida Department of Corrections, Cora Beard (68) of Morriston, and Gail Anita Moss (60) of Miami Gardens were all sentenced to prison time following their previously entered guilty pleas to charges of conspiracy to defraud the government with respect to claims and conspiracy to commit mail fraud. Beard and Moss were also sentenced as a result of additional counts of filing false claims against the government, theft from the government, and aggravated identity theft
The sentences for each defendant are as follows:
- Christopher Jesse Lee was sentenced to 120 months in prison which is to run consecutively to the state of Florida sentence he is now serving and was ordered to pay restitution to the Internal Revenue Service in the amount of $435,130;
- Cora Beard was sentenced to 33 months in prison and was ordered to pay restitution to the Internal Revenue Service in the amount of $580,884;
- Gail Anita Moss was sentenced to 25 months in prison and was ordered to pay restitution to the Internal Revenue Service in the amount of $156,410; and
- William Scott Folk was sentenced to 120 months in prison and was ordered to pay restitution to the Internal Revenue Service in the amount of $580,884.
United States Attorney Pamela Marsh said, “Defrauding the government, abusing the identity of American citizens and undermining the public’s trust in the system will not be taken lightly by this office. We will prosecute these types of criminals with extreme prejudice and the penalties for those convicted will be severe.”
All four defendants were sentenced after pleading guilty in March of this year that beginning around January 2006, the four individuals and others filed fraudulent tax returns using the names and social security numbers of inmates housed in the Florida Department of Corrections, and on occasion using the identities of other individuals who were not incarcerated. As part of this scheme, Beard and Moss used their home addresses as well as the home addresses of previously indicted co-conspirators Mary Blair, Thomas Rabeau, Nikki Kight, Elton Blair, and others, so fraudulent IRS refund checks would be mailed to them. The co-conspirators were indicted January 2012, and all pled guilty to their involvement in the fraudulent income tax scheme, and are serving sentences of between 5 and 10 years. During the course of the scheme, the defendants and others filed and caused to be filed approximately three hundred and forty-four false and fraudulent federal income tax returns, which falsely claimed approximately $1,656,721 in false, fictitious, and fraudulent refunds from the United States.
"IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority” stated James D. Robnett, Special Agent in Charge of the Tampa Field Office. “Filing fraudulent tax returns in the names of other individuals is a significant harm to those individuals whose identities were stolen, as well as a monetary loss against the U.S. Treasury, and abuses the system in which the taxpaying public places its trust. IRS will continue to bring these violators to justice to strengthen the public’s trust and confidence in the integrity of the tax system."
The case was prosecuted by Assistant U.S. Attorneys Tiffany H. Eggers and Randall J. Hensel as part of a Department of Justice initiative to fight stolen identity refund fraud (SIRF). In September 2012, the Department issued Tax Division Directive 144, which sets forth expedited Department review procedures for SIRF cases, enabling law enforcement to respond quickly and effectively to the grave challenges presented in SIRF cases and to prevent the victimization of innocent taxpayers whose identities are stolen by fraudsters. The investigation is the result of an investigation by the Internal Revenue Service – Criminal Investigations with the support of the Florida Department of Corrections.
Former Sutherland Global Services Employees Plead Guilty to Mail FraudRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Brian Wergin, 31, and Bohdan “Don” Luzecky, 45, both of Rochester, N.Y., pleaded guilty before U.S. District Judge Frank P. Geraci, to mail fraud. The charge carries a maximum penalty of 20 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Marisa J. Miller, who is handling the case, stated that the defendants placed false orders for free copies of replacement Intuit software, including TurboTax and Quicken, while employed by Sutherland Global Services. After receiving the software at addresses in Rochester, Atlanta, GA, the defendants sold the software online, including through eBay.com, to customers throughout the United States. Wergin and Luzecky then kept the proceeds for themselves, knowing that they were not authorized to obtain or sell the software.
Sentencing is scheduled for October 2, 2013, 3:00 p.m. before Judge Geraci.
The pleas are the culmination of an investigation on the part of Inspectors of the United States Postal Inspection Service, Boston Division, under the direction of Inspector Kevin Niland and Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel.Former Shreveport Cardiology Center Office Manager Sentenced for Bank FraudRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced today that Vongphanet J. “Joe” Siharath, 40, of Bossier City, La., was sentenced by U.S. District Judge Elizabeth E. Foote to 41 months in prison with five years of supervised release for bank fraud. He was also ordered to pay $1,057,949 in restitution.
According to evidence presented at the guilty plea, Siharath admitted to forging signatures of doctors associated with the medical practice of Cardiology Associates in Shreveport where he was office manager from Jan. 22, 2008 to July 25, 2012. He forged approximately 48 checks and purchased one cashier’s check, with a total loss of $1,057,949 to Cardiology and Associates. The forged checks were made payable to various payees. Siharath controlled each account the money was deposited into.Beginning on Jan. 30, 2009 until July 25, 2012, the defendant also obtained loans to cover the money taken because of the forged checks. The loan officer at the bank allowed the defendant to leave with the bank paperwork to have it signed by various doctors. Instead, the defendant forged the doctors’ names.
The U.S. Secret Service and the Caddo Parish White Collar Crime Task Force conducted the investigation. Assistant U.S. Attorney Mignonne Griffing prosecuted the case.
Former Fugitive Sentenced on Fraud ChargesRead the Press Release
LYNCHBURG, VIRGINIA -- A man who was a fugitive from justice for more than a year was sentenced this morning in the United States District Court for the Western District of Virginia in Lynchburg on a variety of fraud charges.
James Gordon Fields, 47, whose last known address is unknown, pled guilty earlier this year to two counts of bank fraud, one count of making a false statement in relation to a loan, one count of aggravated identity theft, one count of making a false statement under oath in relation to a bankruptcy case and one count of engaging in a monetary transaction in criminally derived property of a value greater than $10,000.
This morning, Fields was sentenced to 10 years in federal prison.
“Mr. Fields repeatedly committed brazen acts of fraud, then tried to flee when apprehended,” United States Attorney Timothy J. Heaphy said today. “He was ultimately brought to justice and held accountable for the tremendous financial loss he caused during his criminal scheme. This office will remain vigilant in our investigation and prosecution of those who commit financial fraud.”
Fields previously admitted to submitting forged signatures on guarantees for loans, submitting fraudulent documentation showing he was the beneficiary of a $77 million trust, which in fact did not exist, and lying about all of the above during his bankruptcy proceedings.
The defendant also forged documents in September 2007 and March 2008 that caused Wachovia bank to issue more than $14 million in fraudulent loans. In addition, he admitted that at the time of his arrest, he removed a screen from a second story window and attempted to escape capture by United States Marshals. He was eventually apprehended two houses away.
The investigation of the case was conducted by the United States Postal Inspection Service, the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation and the United States Marshal’s Service. Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.
Former Employee Sentenced to over Three Years in Prison for Embezzling Funds from Labor UnionRead the Press Release
Cashed Over 300 Checks Totaling $502,586 for Her Personal Benefit
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Cora Carper, age 32, of Churchton, Maryland, today to 37 months in prison followed by three years of supervised release for embezzling from a labor union’s political action committee. Judge Russell also entered an order that Carper pay $495,286 in restitution, the amount remaining from what she embezzled. Carper’s family previously paid $7,300.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and District Director Mark Wheeler of the U.S. Department of Labor, Office of Labor – Management Standards (DOL).
According to her plea, Carper was a secretary with the International Association of Heat and Frost Insulators and Allied Workers, and processed disbursement requests for the Insulators Political Action Committee (PAC) fund. Disbursement requests from the PAC fund had to be made in writing and only by certain officers of the Insulators local. For each requested disbursement, Carper was supposed to print a check from the PAC fund account that contained the electronic signatures of the Insulators general president and secretary-treasurer, and forward that check to the recipient. Carper also entered PAC fund receipts and deposits into a computerized ledger, made deposits in the PAC fund, and reconciled monthly PAC fund bank statements against the electronic ledger.
Carper admits that between June 2009 and February 2011, she printed more than 300 checks totaling approximately $502,586, from the PAC fund account made payable to “cash,” “cash reimbursement,” or “petty cash.” Union officials stated that Carper printed and cashed the checks without authorization, often cashing multiple PAC fund checks the same day. Carper endorsed the back of all but 13 of the more than 300 checks she cashed, and deposited at least $180,000 into her personal bank accounts. To cover up her embezzlement, Carper falsely indicated in the computerized ledger that the checks were written for donations to political candidates or to reimburse work expenses.
In early 2011, the Insulators general president confronted Carper about her embezzlement. Carper admitted that she had taken $7,300, but denied further embezzlement. Her family paid the Insulators $7,300. A subsequent internal investigation by the Insulators and DOL revealed that Carper’s embezzlement far exceeded her limited admission, with $502,586 in checks attributed to Carper’s embezzlement.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised DOL, Office of Labor - Management Standards for its work in the investigation and thanked Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.
Former Employee Sentenced to over Three Years in Prison for Embezzling Funds from Labor UnionRead the Press Release
Cashed Over 300 Checks Totaling $502,586 for Her Personal Benefit
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Cora Carper, age 32, of Churchton, Maryland, today to 37 months in prison followed by three years of supervised release for embezzling from a labor union’s political action committee. Judge Russell also entered an order that Carper pay $495,286 in restitution, the amount remaining from what she embezzled. Carper’s family previously paid $7,300.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and District Director Mark Wheeler of the U.S. Department of Labor, Office of Labor – Management Standards (DOL).
According to her plea, Carper was a secretary with the International Association of Heat and Frost Insulators and Allied Workers, and processed disbursement requests for the Insulators Political Action Committee (PAC) fund. Disbursement requests from the PAC fund had to be made in writing and only by certain officers of the Insulators local. For each requested disbursement, Carper was supposed to print a check from the PAC fund account that contained the electronic signatures of the Insulators general president and secretary-treasurer, and forward that check to the recipient. Carper also entered PAC fund receipts and deposits into a computerized ledger, made deposits in the PAC fund, and reconciled monthly PAC fund bank statements against the electronic ledger.
Carper admits that between June 2009 and February 2011, she printed more than 300 checks totaling approximately $502,586, from the PAC fund account made payable to “cash,” “cash reimbursement,” or “petty cash.” Union officials stated that Carper printed and cashed the checks without authorization, often cashing multiple PAC fund checks the same day. Carper endorsed the back of all but 13 of the more than 300 checks she cashed, and deposited at least $180,000 into her personal bank accounts. To cover up her embezzlement, Carper falsely indicated in the computerized ledger that the checks were written for donations to political candidates or to reimburse work expenses.
In early 2011, the Insulators general president confronted Carper about her embezzlement. Carper admitted that she had taken $7,300, but denied further embezzlement. Her family paid the Insulators $7,300. A subsequent internal investigation by the Insulators and DOL revealed that Carper’s embezzlement far exceeded her limited admission, with $502,586 in checks attributed to Carper’s embezzlement.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised DOL, Office of Labor - Management Standards for its work in the investigation and thanked Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.
Former Bank President Stephen Henry Sentenced to Two Years, Ordered to Pay $2.4 Million in RestitutionRead the Press Release
Memphis, TN – Stephen Henry, 46, of Memphis, was sentenced Friday to 24 months in prison and ordered to pay $2,424,000 in restitution as a result of his guilty plea to one count of misapplication of bank funds, announced U.S. Attorney Edward L. Stanton III.
# # # #
Henry was serving as president and CEO of Oakland Deposit Bank, which was owned by his family. According to information revealed during his plea hearing, Oakland Bank had made numerous loans to Stephen Sims, a local real estate investor. In late 2007, many of these loans were delinquent. In an effort to keep the loans from going into default, Stephen Henry assisted Stephen Sims in using monies from construction loans to pay on unrelated unsecured loans that had become delinquent. In addition, Stephen Henry manipulated the bank’s books and records to allow bank monies to be used to pay on delinquent loans without being credited to a customer’s account.
The scheme eventually led to Sims defaulting on more than $2.4 million dollars in loans from the bank. Oakland Deposit Bank was forced to go into receivership and was taken over by officials with the Federal Deposit Insurance Corporation (FDIC). The bank was later sold.
For his role in the scheme, Sims pleaded guilty to three counts of bank fraud and was sentenced to 87 months in federal prison in July 2012. He was also ordered to pay more than $2.4 million in restitution.
“The court found that while he did not personally benefit from the fraud perpetrated against the bank, Mr. Henry’s failure to follow proper banking procedure enabled the scheme to defraud the bank,” said U.S. Attorney Stanton. “Today’s sentence serves as a warning to those in positions of authority that the failure to exercise due diligence can leave you exposed to serious criminal consequences.”
In addition to the prison sentence and restitution, U.S. District Judge Samuel H. Mays, Jr., ordered Henry to serve five years of supervised release. There is no parole in the federal prison system.
This case was investigated by the Federal Bureau of Investigation and the FDIC. Executive Assistant U.S. Attorney Larry Laurenzi represented the government.Florida Man Indicted for $4 Million Bank Fraud Related to Massillon Construction ProjectRead the Press Release
A Florida man was indicted on four counts for a scheme in which he defrauded Fifth Third Bank out of approximately $4 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Russell W. Spitz, age 75, owned and operated his company, Vision Power Systems, out of the Jacksonville, Florida area, where is currently residing. He was indicted on one count of bank fraud and three counts of wire fraud.
The indictment charges that between in or around December 2006, and in or around August 2008, Spitz knowingly executed a scheme to defraud Fifth Third Bank of approximately $4 million.
The indictment alleges that this scheme began when Spitz’s company, Vision Power Systems, agreed to construct and operate a biomass boiler for FiberCorr, a corrugated paper company based in Massillon, Ohio. The biomass boiler was intended to reduce energy expenses by providing heat and steam power to FiberCorr’s paper mills. The project was financed by the Stark County Port Authority, but Fifth Third Bank issued a letter of credit to guarantee the bonds.
The indictment alleges that Spitz submitted a number of fraudulent documents to Fifth Third Bank during the loan negotiation process, which Fifth Third Bank relied up on when it decided to enter into the loan agreement with Spitz. Fifth Third Bank disbursed approximately $4.1 million for the project.
The indictment alleges that Spitz did not use the funds for construction of the boiler, and, as a result, construction on the boiler stopped in 2008. The project was never completed.
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 violation.
This case is being prosecuted by Assistant U.S. Attorney Chelsea S. Rice of the Cleveland U.S. Attorney’s Office, following an investigation by the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Financial Planner Sentenced to Prison for Investment Scheme That Targeted Elderly ClientsRead the Press Release
PHOENIX, Ariz. - Jay Kevin Perry, 38, of Phoenix, Ariz., was sentenced today by U.S. District Court Judge Paul G. Rosenblatt to 44 months in prison for engaging in a bankruptcy fraud scheme that targeted elderly investors. Another hearing before Judge Rosenblatt, to resolve the nearly $1 million in restitution claims filed against Perry, is currently scheduled for August 6, 2013.
"Unfortunately, the problem of investment scams targeting the elderly has become rampant,” said John S. Leonardo, United States Attorney. “This case sends a strong message that the United States Attorney’s Office, the United States Secret Service, and the FBI are committed to the investigation and prosecution of investment managers who defraud the most vulnerable members of our community. The fact that some of the victims of this scheme were infirm, in their 90s, and lost their life savings makes this defendant particularly deserving of a prison sentence."
Perry defrauded elderly estate-planning clients, many of whom lived in Sun City, Ariz., and ranged in age from the 60s to the late 90s, by convincing them to liquidate annuities and loan money to him. Although Perry promised reasonable returns on these “loans,” he made few if any payments to his clients. In some cases, Perry secured his clients’ “loans” with a commercial property on which he had failed to make payments. Unbeknownst to his clients, Perry also filed for bankruptcy, and in his bankruptcy petition he intentionally omitted the addresses of his clients (which had the effect of concealing that he was attempting to discharge the debts he owed them).
The investigation in this case was conducted by the United States Secret Service and the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorney Kevin M. Rapp.
CASE NUMBER: CR 11-2291-PHX-PGR
RELEASE NUMBER: 2013-051_Perry
# # #For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Fifty-five hospitals to pay u.S. more than $34 million to resolve false claims act allegations related to kyphoplastyRead the Press Release
BUFFALO – U.S. Attorney William J. Hochul, Jr. announced today that 55 hospitals located throughout 21 states have agreed to pay the United States a total of more than $34,000,000 to settle allegations that the health care facilities submitted false claims to Medicare for kyphoplasty procedures. Kyphoplasty is a minimally-invasive procedure used to treat certain spinal fractures that often are due to osteoporosis.
In many cases, kyphoplasty can be performed safely and effectively as an outpatient procedure without any need for a more costly hospital admission. The settlements announced today resolve allegations that the settling hospitals frequently billed Medicare for kyphoplasty procedures on a more costly inpatient basis, rather than an outpatient basis, in order to increase their Medicare billings.
“This office will continue to ensure that sound medical decisions determine the ultimate treatment of a patient, not the financial interests of hospitals,” said U.S. Attorney William J. Hochul, Western District of New York. “We will not stand by and allow hospitals to inflate their profits based on unnecessary hospital admissions at the expense of the Medicare program or any other federal program. The settlements announced today will help maintain the integrity of this important program and all government-funded programs.”
The settling facilities, and the amounts they have agreed to pay, include the following:
Atrium Medical Center, Middletown, OH, has agreed to pay $4,232,992.50.Altru Health System, Grand Forks, ND, has agreed to pay $1,492,690.
Cedars Sinai Medical Center, Los Angeles, CA, has agreed to pay $1,485,846.
Des Peres Hospital, St. Louis, MO, has agreed to pay $900,000.
Mount Sinai Medical Center, Miami, FL, has agreed to pay $1,846,194.00.
New England Baptist Hospital, Boston, MA, has agreed to pay $374,814.48.
St. Anne’s Hospital, Fall River, MA, has agreed to pay $552,745.
The Queen’s Medical Center, Honolulu, HI, has agreed to pay $1,055,249.57.
Trover Health System, Madisonville, KY, has agreed to pay $1,162,837.
Wayne Memorial Hospital, Goldsboro, NC, has agreed to pay $1,250,000.
Twenty-three hospitals affiliated with HCA Inc., Nashville, TN, have agreed to pay a total of $7,145,842.72. These include: Aventura Hospital & Medical Center (Aventura, FL); Capital Regional Medical Center (Tallahassee, FL); Coliseum Medical Center (Macon, GA); Coliseum Northside Hospital (Macon, GA); Conroe Regional Medical Center (Conroe, TX); Denton Regional Medical Center (Denton, TX); Doctors Hospital of Sarasota (Sarasota, FL); Edmond Regional Medical Center (Edmond, OK); Fawcett Memorial Hospital (Port Charlotte, FL); Fort Walton Beach Medical Center (Fort Walton Beach, FL); Garden Park Medical Center (Gulf Port, MS); JFK Medical Center (Atlantis, FL); Los Robles Regional Medical Center (Thousand Oaks, CA); North Florida Regional Medical Center (Gainesville, FL); Northlake Medical Center (Tucker, GA); Oklahoma University Medical Center (Oklahoma City, OK); Palmyra Medical Center (Albany, GA); Redmond Regional Medical Center (Rome, GA); Southwest Florida Regional Medical Center (Fort Myers, FL); St. Lucie Medical Center (Port Saint Lucie, FL); Summit Medical Center (Hermitage, TN); Sunrise Hospital & Medical Center (Las Vegas, NV); and Wesley Medical Center (Wichita, KS).
Six hospitals affiliated with Lifepoint Hospitals, Inc., Brentwood, TN, have agreed to pay a total of $2,522,502.69. These include: Andalusia Regional Hospital (Andalusia, AL); Jackson Purchase Medical Center (Mayfield, KY); Lake Cumberland Regional Hospital (Somerset, KY); Minden Medical Center (Minden, LA); Russellville Hospital (Russellville, AL); and Western Plains Medical Complex (Dodge City, KS).
Five hospitals affiliated with Trinity Health, Livonia, MI, have agreed to pay a total of $3,910,017.53. These include: Mercy Medical Center – Dubuque (Dubuque, IA); Mercy Medical Center - Sioux City (Sioux City, IA); St. Joseph Mercy Hospital (Pontiac, MI); Mercy Health Partners (Muskegon, MI); and Mount Carmel New Albany Surgical Hospital (New Albany, OH).
Four hospitals affiliated with Morton Plant Mease BayCare Health System, Clearwater, FL, have agreed to pay a total of $2,378,325.45. These include: Morton Plant Hospital (Clearwater, FL); Morton Plant North Bay Hospital (New Port Richey, FL); Mease Dunedin Hospital (Dunedin, FL); and Mease Countryside Hospital (Safety Harbor, FL).
Three hospitals affiliated with Baptist Memorial Health Care Corporation, Memphis, TN, have agreed to pay a total of $691,168. These include: Baptist Memorial Hospital-Golden Triangle (North Columbus, MS); Baptist Memorial Hospital-Collierville (Collierville, TN); and Baptist Memorial Hospital-Memphis (Memphis, TN).
Two hospitals affiliated with Covenant Health, Knoxville, TN, have agreed to pay a total of $1,845,641.74. These include Parkwest Medical Center (Knoxville, TN) and Methodist Medical Center of Oak Ridge (Oak Ridge, TN).
Two Hospitals affiliated with Bayhealth Medical Center, Newark, DE, have agreed to pay a total of $1,115,306.37. These include Bayhealth Kent General Hospital (Dover, DE) and Bayhealth Milford Memorial Hospital (Milford, DE).
The Justice Department has now reached settlements with more than 100 hospitals totaling approximately $75 million to resolve allegations that they mischarged Medicare for kyphoplasty procedures. In addition to today’s settlement, the government previously settled with Medtronic Spine LLC, the corporate successor to Kyphon Inc., for $75 million to settle allegations that the company defrauded Medicare by counseling hospital providers to perform kyphoplasty procedures as inpatient rather than outpatient procedures.
All but four of the settling facilities announced today were named as defendants in a qui tam, or whistle blower, lawsuit brought under the False Claims Act, which permits private citizens to bring lawsuits on behalf of the United States and receive a portion of the proceeds of any settlement or judgment awarded against a defendant. The lawsuit was filed in federal district court in Buffalo, N.Y., by Craig Patrick and Charles Bates. Patrick is a former reimbursement manager for Kyphon, and Bates was formerly a regional sales manager for Kyphon in Birmingham, Ala. The whistle blowers will receive a total of approximately $5.5 million from the settlements announced today.
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. 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 that effort is the False Claims Act, which the Justice Department has used to recover more than $10.7 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14.7 billion.
The settlements were the result of a coordinated effort among the U.S. Attorney’s Office for the Western District of New York, the Commercial Litigation Branch of the Justice Department’s Civil Division, and the Department of Health and Human Services’ Office of Inspector General and Office of Counsel to the Inspector General.
The claims resolved by these settlements are allegations only, and there has been no determination of liability.Fifty-Five Hospitals to Pay U.S. More Than $34 Million<br /> to Resolve False Claims Act Allegations Related to KyphoplastyRead the Press Release
Fifty-five hospitals located throughout twenty-one states have agreed to pay the United States a total of more than $34 million to settle allegations that the health care facilities submitted false claims to Medicare for kyphoplasty procedures, the Justice Department announced today. Kyphoplasty is a minimally-invasive procedure used to treat certain spinal fractures that often are due to osteoporosis.
In many cases, kyphoplasty can be performed safely and effectively as an outpatient procedure without any need for a more costly hospital admission. The settlements announced today resolve allegations that the settling hospitals frequently billed Medicare for kyphoplasty procedures on a more costly inpatient basis, rather than an outpatient basis, in order to increase their Medicare billings.
“Hospitals that participate in the Medicare program must bill for their services accurately and honestly,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division of the Department of Justice. “The Department of Justice is committed to ensuring that Medicare funds are expended appropriately, based on the medical needs of patients rather than the desire of medical providers to maximize profits.”
The settling facilities, and the amounts they have agreed to pay, include the following:
• Atrium Medical Center, Middletown, OH, has agreed to pay $4,232,992.50.
• Altru Health System, Grand Forks, ND, has agreed to pay $1,492,690.
• Cedars Sinai Medical Center, Los Angeles, CA, has agreed to pay $1,485,846.
• Des Peres Hospital, St. Louis, MO, has agreed to pay $900,000.
• Mount Sinai Medical Center, Miami, FL, has agreed to pay $1,846,194.00.
• New England Baptist Hospital, Boston, MA, has agreed to pay $374,814.48.
• St. Anne’s Hospital, Fall River, MA, has agreed to pay $552,745.
• The Queen’s Medical Center, Honolulu, HI, has agreed to pay $1,055,249.57.
• Trover Health System, Madisonville, KY, has agreed to pay $1,162,837.
• Wayne Memorial Hospital, Goldsboro, NC, has agreed to pay $1,250,000.
• Twenty-three hospitals affiliated with HCA Inc., Nashville, TN, have agreed to pay a total of $7,145,842.72. These include: Aventura Hospital & Medical Center (Aventura, FL); Capital Regional Medical Center (Tallahassee, FL); Coliseum Medical Center (Macon, GA); Coliseum Northside Hospital (Macon, GA); Conroe Regional Medical Center (Conroe, TX); Denton Regional Medical Center (Denton, TX); Doctors Hospital of Sarasota (Sarasota, FL); Edmond Regional Medical Center (Edmond, OK); Fawcett Memorial Hospital (Port Charlotte, FL); Fort Walton Beach Medical Center (Fort Walton Beach, FL); Garden Park Medical Center (Gulf Port, MS); JFK Medical Center (Atlantis, FL); Los Robles Regional Medical Center (Thousand Oaks, CA); North Florida Regional Medical Center (Gainesville, FL); Northlake Medical Center (Tucker, GA); Oklahoma University Medical Center (Oklahoma City, OK); Palmyra Medical Center (Albany, GA); Redmond Regional Medical Center (Rome, GA); Southwest Florida Regional Medical Center (Fort Myers, FL); St. Lucie Medical Center (Port Saint Lucie, FL); Summit Medical Center (Hermitage, TN); Sunrise Hospital & Medical Center (Las Vegas, NV); and Wesley Medical Center (Wichita, KS).
• Six hospitals affiliated with Lifepoint Hospitals, Inc., Brentwood, TN, have agreed to pay a total of $2,522,502.69. These include: Andalusia Regional Hospital (Andalusia, AL); Jackson Purchase Medical Center (Mayfield, KY); Lake Cumberland Regional Hospital (Somerset, KY); Minden Medical Center (Minden, LA); Russellville Hospital (Russellville, AL); and Western Plains Medical Complex (Dodge City, KS).
• Five hospitals affiliated with Trinity Health, Livonia, MI, have agreed to pay a total of $3,910,017.53. These include: Mercy Medical Center – Dubuque (Dubuque, IA); Mercy Medical Center - Sioux City (Sioux City, IA); St. Joseph Mercy Hospital (Pontiac, MI); Mercy Health Partners (Muskegon, MI); and Mount Carmel New Albany Surgical Hospital (New Albany, OH).
• Four hospitals affiliated with Morton Plant Mease BayCare Health System, Clearwater, FL, have agreed to pay a total of $2,378,325.45. These include: Morton Plant Hospital (Clearwater, FL); Morton Plant North Bay Hospital (New Port Richey, FL); Mease Dunedin Hospital (Dunedin, FL); and Mease Countryside Hospital (Safety Harbor, FL).
• Three hospitals affiliated with Baptist Memorial Health Care Corporation, Memphis, TN, have agreed to pay a total of $691,168. These include: Baptist Memorial Hospital-Golden Triangle (North Columbus, MS); Baptist Memorial Hospital-Collierville (Collierville, TN); and Baptist Memorial Hospital-Memphis (Memphis, TN).
• Two hospitals affiliated with Covenant Health, Knoxville, TN, have agreed to pay a total of $1,845,641.74. These include Parkwest Medical Center (Knoxville, TN) and Methodist Medical Center of Oak Ridge (Oak Ridge, TN).
• Two Hospitals affiliated with Bayhealth Medical Center, Newark, DE, have agreed to pay a total of $1,115,306.37. These include Bayhealth Kent General Hospital (Dover, DE) and Bayhealth Milford Memorial Hospital (Milford, DE).“This office will continue to ensure that sound medical decisions determine the ultimate treatment of a patient, not the financial interests of hospitals,” said U.S. Attorney William J. Hochul, Western District of New York. “We will not stand by and allow hospitals to inflate their profits based on unnecessary hospital admissions at the expense of the Medicare program or any other federal program. The settlements announced today will help maintain the integrity of this important program and all government-funded programs.”
“Whenever hospitals knowingly overcharge Medicare, critically needed resources are wasted and health costs are driven up,” said Daniel R. Levinson, Inspector General for the U.S. Department of Health and Human Services. “When taxpayers’ dollars are threatened, OIG and its federal partners will take action.”
The Justice Department has now reached settlements with more than 100 hospitals totaling approximately $75 million to resolve allegations that they mischarged Medicare for kyphoplasty procedures. In addition to today’s settlement, the government previously settled with Medtronic Spine LLC, the corporate successor to Kyphon Inc., for $75 million to settle allegations that the company defrauded Medicare by counseling hospital providers to perform kyphoplasty procedures as inpatient rather than outpatient procedures.
“It has never been more important to protect the Medicare Trust Fund, and this includes ensuring that Medicare is not burdened with the high costs of medically unnecessary admissions. The Office of Inspector General will continue to ensure that the Medicare Program is protected from fraud, waste, and abuse,” said Tom O'Donnell, Special Agent in Charge of the Office of Investigations of the HHS-OIG New York Regional Office. “The settlements related to kyphoplasty billing that have been reached with over 100 hospitals represent one of the largest and most successful multi-party health care investigations in the nation.”
All but four of the settling facilities announced today were named as defendants in a qui tam, or whistleblower, lawsuit brought under the False Claims Act, which permits private citizens to bring lawsuits on behalf of the United States and receive a portion of the proceeds of any settlement or judgment awarded against a defendant. The lawsuit was filed in federal district court in Buffalo, N.Y., by Craig Patrick and Charles Bates. Mr. Patrick is a former reimbursement manager for Kyphon, and Mr. Bates was formerly a regional sales manager for Kyphon in Birmingham, Ala. The whistleblowers will receive a total of approximately $5.5 million from the settlements announced today.
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. 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 that effort is the False Claims Act, which the Justice Department has used to recover more than $10.7 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14.7 billion.
The settlements were the result of a coordinated effort among the U.S. Attorney’s Office for the Western District of New York, the Commercial Litigation Branch of the Justice Department’s Civil Division, and the Department of Health and Human Services’ Office of Inspector General and Office of Counsel to the Inspector General.
The claims resolved by these settlements are allegations only, and there has been no determination of liability.
Federal Inmates Indicted for Having Marijuana in PrisonRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced today that a federal grand jury returned indictments charging two people with possession of contraband in prison.
One indictment charges that on or about August 7, 2012, while an inmate in Federal Correctional Institute Elkton, Jason D. Melton, age 32, possessed marijuana in violation of federal statutes prohibiting the possession of contraband in prison.
Another indictment charges that on or about April 4, 2013, Albert Robinson, age 42, possessed marijuana while an inmate in Federal Correctional Institute Elkton.
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 violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This cases are being prosecuted by Assistant United States Attorneys M. Kendra Klump and Margaret Sweeney, following investigations by the Youngstown Resident Agency of the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Federal Grand Jury in Fort Wayne Returns IndictmentRead the Press Release
FortWayne,IN C TheUnited States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returnedthe following Indictment on May 22, 2013:
DavidWilliams,28,ofFortWayne,Indiana,is chargedinasinglecountIndictmentwith making a false statement on an FFL application onor about February 15, 2013.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Fort Wayne Police Department.Thiscasehasbeenassignedtoandwillbeprosecutedby Assistant United States Attorney Tina L. Nommay.
TheUnitedStatesAttorney'sOfficeemphasizedthatanIndictmentismerelyanallegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed willbedetermined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Federal Charges Filed in Overland Park Bank RobberyRead the Press Release
KANSAS CITY, KAN. – Federal charges have been filed alleging a 35-year-old man armed with a hatchet robbed a bank in Overland Park, Kan., U.S. Attorney Barry Grissom said today.
Derek T. Brownlee, 35, Kansas City, Mo., was charged with one count of bank robbery. A criminal complaint filed in U.S. District Court in Kansas City, Kan., alleged that on July 1, 2013, Brownlee robbed the Metcalf Bank at 7800 College Boulevard in Overland Park. Wearing a bandanna over his face and carrying a hatchet, he jumped over the teller’s counter and demanded money. He took cash from a drawer and some personal items from a teller including a Kindle Fire and a Samsung cellular phone before fleeing the bank.
When officers from the Overland Park Police Department and the Kansas City, Mo., Police Department spotted his car, he led them on a chase at speeds up to 90 miles per hour. Brownlee stopped his car in the 8700 block of Indiana in Kansas City, Mo., and fled on foot. He was arrested by officers from the Kansas City, Mo., Police Department.
If convicted, he faces a maximum penalty of 20 years and a fine up to $250,000. The FBI, the Overland Park Police Department and the Kansas City, Mo., Police Department investigated. Assistant U.S. Attorney Kim Martin is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Father and Son Convicted of Operating $100 Million Ponzi Scheme That Targeted Members of the Lds ChurchRead the Press Release
PHOENIX. – Guy Andrew Williams, 42, and Brent F. Williams, 66, both of Mesa, Ariz., were convicted by a federal jury in Phoenix on June 28, 2013, of 38 counts of conspiracy, wire fraud, mail fraud, and money laundering. The two-week trial was conducted by U.S. District Judge Jack Zouhary, a visiting judge from the Northern District of Ohio.
U.S. Attorney John Leonardo stated, “Affinity fraud is a particularly reprehensible crime because it depends upon a betrayal of trust to defraud victims of their money. The defendants preyed upon those with whom they made connections through church or in the community. This verdict holds the defendants accountable for their crimes and sends a message to others who would engage in such misconduct.”
FBI Special Agent in Charge Douglas G. Price, Phoenix Division stated, "The guilty verdict rendered in this matter holds Guy and Brent Williams accountable for their actions. The FBI and the IRS are committed to investigating and pursuing those who conspire and prey on trusting individuals for their own personal gain. The FBI and our law enforcement partners will continue to combat fraud as it relates to money laundering, wire and mail fraud."
"The defendants lived lavish lifestyles and enriched themselves at the expense of their unsuspecting investors. This classic Ponzi scheme serves as an unfortunate reminder that everyone should exercise extreme caution before committing their hard-earned money to investment opportunities that promise returns that sound too good to be true" said Dawn Mertz, Special Agent in Charge of the Phoenix Field Office of Internal Revenue Service, Criminal
Investigation."This verdict should serve as a strong deterrent to others who would misuse our nation's mail system to commit mail fraud," said Acting Phoenix Division Postal Inspector in Charge Adrian Gonzalez. "The United States Postal Inspection Service remains dedicated to our mission to enforce the laws that defend the nation’s mail system from illegal use and ensure public trust in the mail. Postal Inspectors will continue to partner with fellow law enforcement agencies to bring those perpetuating fraud to justice."
According to the evidence at trial, Guy Andrew Williams and his father, Brent F. Williams, served as the managing director and chief financial officer, respectively, of a group of Mesa, Ariz.-based investment funds known as the “Mathon” entities. The evidence at trial showed that the Mathon entities collected more than $100 million in funds from investors from February 2002 until April 2005.
The evidence at trial further showed that Mathon’s investors, the majority of whom were members of the Church of Jesus Christ of Latter-Day Saints and hailed from Arizona, Utah, and Nevada, were generally told that their money would be used to make short-term loans to third-party borrowers at a high interest rate and that Mathon had an extensive track record of making such loans. In fact, the evidence at trial showed that the defendants, and their business partners, ran Mathon as a Ponzi scheme—that is, by using the overwhelming majority of incoming money from new investors to pay back initial investors. Finally, the evidence at trial showed that the defendants and their business partners paid themselves extravagant salaries and bonuses exceeding $10 million and also used their investors’ money to make millions of dollars of “loans” to companies they secretly controlled.
The sentencing of Guy Andrew Williams and Brent F. Williams is currently scheduled for Sept. 30, 2013, before Judge Zouhary. Also scheduled to be sentenced on that date are Duane Hamblin Slade and Russell Laurence Sewell, two other members of Mathon’s management team who pleaded guilty to related charges before trial.
The defendants face a potential maximum sentence of 20 years in federal prison on each count of conspiracy, wire fraud, and mail fraud, and a potential maximum sentence of 10 years in federal prison on each count of money laundering. Each count also carries a maximum fine of $250,000.
The investigation in this case was conducted by Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigations Division, the U.S. Postal Inspection Service, and the Securities Division of the Arizona Corporation Commission. The prosecution was handled by Assistant U.S. Attorneys Peter S. Sexton, Kevin M. Rapp, and Dominic Lanza.
CASE NUMBER: CR-09-1492-PHX-ROS
RELEASE NUMBER: 2013-050_WilliamsFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Eugene Woman Sentenced to Prison for Selling More than 5,000 Illegally Obtained Sprint Cellphones Through the InternetRead the Press Release
EUGENE, OREGON— On January 8, 2013, Tamara Diane Brown, 41, of Eugene, Oregon, pleaded guilty to one count of mail fraud in U.S. District Court in Eugene, admitting her involvement in a scheme to sell illegally obtained cellphones through the internet. Today she was sentenced to 21 months in federal prison and ordered to pay restitution to the victim.
Brown admitted that while working as an employee of The Pape Group, Inc. in Eugene, she used her corporate authority to order large quantities of Sprint cellphones, which she then diverted and had delivered to her home and the home of her friend. Brown sold the devices through eBay. The scheme to defraud The Pape Group, Inc. and Sprint took place between February 2010 and October 2011. Brown admitted that during the scheme, she improperly ordered 5,107 cellphones and obtained more than $305,000 from selling them. She deposited the ill-gotten gains into her personal bank account and spent the proceeds by making a down payment on a residence and for vehicles, trips to Hawaii and Las Vegas, clothes and other personal expenses. The Pape Group, Inc. and Sprint were unaware of the fraud during the time it was occurring. Brown was terminated once The Pape Group, Inc. discovered her scheme.
Chief United States District Judge Ann Aiken presided over the case ordered Brown to serve 21 months in federal prison. After her prison sentence Brown must serve three years of supervised release. Brown was also ordered to forfeit the $305,000 she made from the fraud, and pay full restitution to the Pape Group, Inc.
The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U. S. Attorneys Chris Cardani and Amy Potter.
Eleven Individuals Sentenced During the Month of June for Federal Supervised Release ViolationsRead 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
WHEELING, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II, announced that during the month of June, 2013, eleven (11) individuals had their supervised release revoked for violating terms and conditions imposed by the United States District Court.
WHEELING DIVISION REVOCATIONS
(Judge Frederick P. Stamp, Jr.)
CALVIN SPEARS, age 32, of Wheeling, was sentenced to 18 months imprisonment for possession and use of marijuana and cocaine and failure to submit monthly supervision reports. SPEARS was originally sentenced on April 22, 2002, to 120 months imprisonment and
3 years of supervised release for interstate transportation of controlled substances. SPEARS’ sentence in this case will run consecutively to the 15-year sentence he is currently serving for a conviction in the Circuit Court of Ohio County.SEAN BURT, age 30, of Cleveland, Ohio, was sentenced to 14 months imprisonment for failure to attend drug aftercare, leaving the district without permission, new law violations and failure to notify probation officer of new arrest. BURT was originally sentenced on April
28, 2003, to 125 months imprisonment and 5 years of supervised release for the distribution of cocaine base within 1,000 feet of a school. BURT was remanded to the custody of the United States Marshal pending designation to a Federal institution.VANCE L. BURNS, age 53, of Wheeling, West Virginia, was sentenced to 8 months imprisonment to be followed by 48 months of supervised release for possession and use of cocaine. BURNS was originally sentenced on March 24, 2006, to 78 months imprisonment and
6 years of supervised release for the distribution of cocaine base within 1,000 feet of a playground. BURNS was remanded to the custody of the United States Marshal pending designation to a Federal institution.DANIEL BANKS, age 37, of Wheeling, was sentenced to 5 months imprisonment to be followed by 19 months of supervised release for the possession and distribution of a controlled substance on two occasions. BANKS was originally sentenced on January 23, 2006, to 92 months imprisonment and 2 years of supervised release for being a felon in possession of a firearm. BANKS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The United States was represented at the Wheeling revocation hearings by Assistant
United States Attorneys John C. Parr and David J. Perri.CLARKSBURG DIVISION REVOCATIONS (Judge Irene M. Keeley)
BRIAN GRIFFEY, age 43, of Monongah, West Virginia, was sentenced to 18 months imprisonment for unlawful possession of controlled substances and attempting to defeat a drug test. GRIFFEY was originally sentenced on March 27, 2003, to 77 months imprisonment and
3 years of supervised release for the distribution of heroin. GRIFFEY was remanded to the custody of the United States Marshal pending designation to a Federal institution.ED CORNEY, age 25, of Morgantown, West Virginia, was sentenced to 14 months imprisonment for possession of controlled substances, testing positive for the use of controlled substances, possession of dangerous weapon, failure to participate in drug rehabilitation program and failure to obtain GED and participate in educational training program. CORNEY was originally sentenced on November 24, 2008, to 18 months imprisonment and
3 years of supervised release for the distribution of cocaine. CORNEY was remanded to the custody of the United States Marshal pending designation to a Federal institution.PAUL BOWEN, age 27, of Clarksburg, West Virginia, was sentenced to 14 months imprisonment for failure to report for drug testing, failure to attend substance abuse counseling session, failure to report change in employment status, failure to report change of address, failure to follow instructions of probation officer, possession of opiates and cocaine, testing positive for the use of opiates and cocaine, and failure to provide proper paperwork to the probation officer. BOWEN, was originally sentenced on April 24, 2007, to 30 months imprisonment and 36 months of supervised release for the distribution of cocaine base. BOWEN was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The United States was represented at the Clarksburg revocation hearings by Assistant
United States Attorneys Shawn A. Morgan and Zelda E. Wesley.MARTINSBURG DIVISION REVOCATIONS (Judge Gina M. Groh)
STEPHANIE MILLER, age 25, of Martinsburg, was sentenced to 6 months imprisonment for failure to support monthly report forms, testing positive for the use of controlled substances, failure to attend counseling as directed and committing a new charge of shoplifting. MILLER was originally sentenced on April 7, 2009, to 24 months imprisonment and 3 years of supervised release for the distribution of cocaine. MILLER was remanded to the custody of the United States Marshal pending designation to a Federal institution.DEVIN PARRISH, age 28, of Morgan County, West Virginia, was sentenced to 4 months imprisonment for third DUI offense, battery on police officer and change of address without permission of the probation officer. PARRISH was originally sentenced on June 19,
2006, to 30 months imprisonment and 3 years of supervised release possession with intent to distribute cocaine base. PARRISH was remanded to the custody of the United States Marshal pending designation to a Federal institution.The United States was represented at the Martinsburg revocation hearings by Assistant
United States Attorney Paul T. Camilletti.ELKINS DIVISION REVOCATIONS
(Chief Judge John Preston Bailey)
ADRON H. CLAYPOOL, age 45, of Charleston, West Virginia, was sentenced to 9 months imprisonment for use and possession of controlled substances and alcohol, committing another crime while on supervised release and failure to notify probation officer of his arrest. CLAYPOOL was originally sentenced on April 24, 2006, to 63 months imprisonment and 3 years of supervised release for possession of pseudoephedrine with intent to manufacture methamphetamine. CLAYPOOL was remanded to the custody of the United States Marshal pending designation to a Federal institution.
MATTHEW SHANE BURNS, age 41, of Randolph County, West Virginia, was sentenced to 6 months imprisonment to be followed by 30 months of supervised release for committing another crime while on supervised release, failure to answer truthfully all inquiries of the probation officer and associating with others engaged in criminal activity. BURNS was originally sentenced on May 10, 2005, to 77 months imprisonment and 3 years of supervised release for being a felon in possession of a firearm. BURNS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The United States was represented at the Elkins revocation hearings by Assistant
United States Attorney Stephen D. Warner.The United States Probation Office carries out probation and pretrial services functions throughout the Northern District of West Virginia. With locations in Wheeling, Clarksburg, Martinsburg, and Elkins, the office works to assist the federal courts in the fair administration of justice, to protect the community, and to bring about long-term positive change in individuals under supervision. Jeff Givens is the Chief Probation Officer for the Northern District.
Detroit Man Pleads Guilty to Federal Oxycodone ChargeRead the Press Release
CHARLESTON, W.Va. – A man who drove an acquaintance from Detroit to Charleston in July 2011 in connection with an oxycodone scheme pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Terry Martin, 20, of Detroit, pleaded guilty in federal court in Charleston to aiding and abetting the possession of oxycodone with intent to distribute. On July 8, 2011, Martin drove an acquaintance from Detroit to Charleston. Martin knew that the acquaintance possessed oxycodone at the time and intended to deliver it to a third individual who was located in the Charleston area. Following their arrival to Charleston, Martin and the associate were arrested. Police later seized a total of 59 30-milligram oxycodone pills that were hidden on the associate’s person.
Martin faces up to 20 years in federal prison when he is sentenced on October 17, 2013 by United States District Judge Thomas E. Johnston.
The Metropolitan Drug Enforcement Network Team (MDENT) conducted the investigation. Assistant United States Attorney John Frail is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Defendant Pleads Guilty to Health Care Fraud in Connection with HIV Infusion ClinicRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), announced that defendant Jorge Alipio Perez Villa pleaded guilty yesterday to one count of healthcare fraud for his participation in a healthcare fraud scheme involving a purported HIV infusion clinic. Sentencing is scheduled for September 9, 2013 before U.S. District Judge Joan A. Lenard.
According to documents filed with the court and statements made during the plea hearing, Perez Villa was the purported owner and operator of an HIV infusion clinic, ABC Physician’s Group, Inc. ABC Physician’s Group, however, did not treat any patients. Rather, the defendant, through his company, fraudulently represented to Medicare that it was administering HIV infusion treatments to patients suffering from HIV. In truth, however, the defendant simply used the stolen Medicare numbers from unwitting Medicare beneficiaries to bill for treatments that were never provided. In this way, between March and September 2006, ABC Physician’s Group submitted approximately $5.3 million in fraudulent claims to Medicare. As a result of those claims, Medicare paid ABC Physician’s Group approximately $616,710. The defendant distributed the fraud proceeds to himself and others.
Mr. Ferrer thanked the FBI and HHS-OIG for their work on the case. This case is being prosecuted by Assistant U.S. Attorney Alicia Shick.
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.
David Gonzalez Sentenced for Illegal ReentryRead the Press Release
DAVID GONZALEZ (a/k/a Othoniel David Reconco), age 24, a citizen of Honduras, was sentenced today in federal court by U. S. District Judge Ivan L.R. Lemelle, announced U.S. Attorney Dana Boente. GONZALEZ was sentenced to 20 months imprisonment. In addition to the term of imprisonment, Judge Lemelle ordered that GONZALEZ be placed on three years of supervised release following the term of imprisonment, during which time the defendant will be under federal supervision and risks an additional term of imprisonment should he violate any terms of supervised release.
According to court documents, on April 17, 2013, GONZALEZ pled guilty to a one-count indictment admitting he was an alien who was previously removed and was knowingly and unlawfully found in the United States, in Jefferson Parish, Louisiana on January 24, 2013, without the Attorney General or Secretary of the Department of Homeland Security, having expressly consented to his re-application for admission into the United States. GONZALEZ’s sentence was subject to enhancement based on a previous aggravated felony conviction.
This case was investigated by United States Immigration and Customs Enforcement and the Jefferson Parish Sheriff’s Office. The case was prosecuted by Special Assistant United States Attorney Robert Weir.
Cyterra Corporation Agrees to Pay $1.9 Million to Resolve False Claims Act AllegationsRead the Press Release
BOSTON – CyTerra Corporation has agreed to pay the federal government $1.9 million to resolve civil liability arising from its failure to provide the United States Department of the Army with accurate, complete, and current cost or pricing data for its sales of mine detectors, the Justice Department announced today. CyTerra, headquartered in Waltham, manufactures equipment, including portable mine detectors, used by the United States military.
“The Department of Justice will hold accountable those who undermine the integrity of the public contract process in pursuit of financial gain,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division of the U. S. Department of Justice. “Those who wish to do business with the government are expected to do so fairly, and those who don’t will face the consequences.”
In 2003, the Department of the Army awarded CyTerra a contract for the production and delivery of AN/PSS-14 hand-held mine detection units. The contract was modified several times to provide for the production and delivery of additional mine detection units. The government contended that, in connection with the negotiations concerning three of the contract modifications, CyTerra knowingly failed to provide the Army with the most recent cost or pricing data on the number of labor hours needed to produce a mine detector. Under the Truth in Negotiations Act, CyTerra was required to provide the cost or pricing data that was “accurate, complete, and current.” The government alleged that if the Army had received such information, it would have negotiated a lower price.
“Contractors who negotiate with the government must be scrupulous in their dealings with the government,” said Carmen M. Ortiz, United States Attorney for the District of Massachusetts. “Government contractors should be on notice that the requirements of the Truth in Negotiations and False Claims Acts will be enforced.”
The civil settlement resolves a lawsuit pending in federal court in the District of Massachusetts under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery. The action was filed by Kevin Bartczak and Keith Aldrich, two former CyTerra executives. As part of today’s resolution, Bartczak and Aldrich will share $361,000 from the civil recovery.
The case is being handled by the U.S. Attorney’s Office for the District of Massachusetts and the Civil Division’s Commercial Litigation Branch, with investigative assistance from the Defense Criminal Investigative Service.
“The Defense Criminal Investigative Service (DCIS) is committed to working with its partner agencies, such as the U.S. Department of Justice, the Naval Criminal Investigative Service, and the Army Criminal Investigation Command, to ensure the integrity of the Defense Department’s procurement process,” said Leigh-Alistair Barzey, Resident Agent-in-Charge of the DCIS Boston Resident Agency. “This settlement agreement reflects that commitment and is a successful resolution of this investigation, which could not have occurred without the direction of the Department of Justice, and the assistance of the Defense Contract Audit Agency’s Investigations Support Division.”
The civil lawsuit is captioned United States ex rel. Bartczak, et al. v. CyTerra Corporation., Civil Action No. 06-CA-10550-NMG.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
CyTerra Corporation Agrees to Pay $1.9 Million<br /> to Resolve False Claims Act AllegationsRead the Press Release
CyTerra Corporation has agreed to pay the federal government $1.9 million to resolve civil liability arising from its failure to provide the U. S. Department of the Army with accurate, complete and current cost or pricing data for its sales of mine detectors, the Justice Department announced today. CyTerra, headquartered in Waltham, Mass., manufactures equipment, including portable mine detectors, used by the U. S. military.
“The Department of Justice will hold accountable those who undermine the integrity of the public contract process in pursuit of financial gain,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division of the U. S. Department of Justice. “Those who wish to do business with the government are expected to do so fairly, and those who don’t will face the consequences.”
In 2003, the Department of the Army awarded CyTerra a contract for the production and delivery of AN/PSS-14 hand-held mine detection units. The contract was modified several times to provide for the production and delivery of additional mine detection units. The government contended that, in connection with the negotiations concerning three of these contract modifications, CyTerra knowingly failed to provide the Army with the most recent cost or pricing data on the number of labor hours needed to produce a mine detector. Under the Truth in Negotiations Act, CyTerra was required to provide cost or pricing data that was “accurate, complete and current.” The government alleged that if the Army had received such information, it would have negotiated a lower price.“Contractors who negotiate with the government must be scrupulous in their dealings with the government,” said Carmen M. Ortiz, U.S. Attorney for the District of Massachusetts. “Government contractors should be on notice that the requirements of the Truth in Negotiations and False Claims Acts will be enforced.”
The civil settlement resolves a lawsuit pending in federal court in the District of Massachusetts under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the U. S. and share in any recovery. The action was filed by Kevin Bartczak and Keith Aldrich, two former CyTerra executives. As part of today’s resolution, Bartczak and Aldrich will share $361,000 from the civil recovery.The case is being handled by the U.S. Attorney’s Office for the District of Massachusetts and the Civil Division’s Commercial Litigation Branch, with investigative assistance from the Defense Criminal Investigative Service.
“The Defense Criminal Investigative Service (DCIS) is committed to working with its partner agencies, such as the U.S. Department of Justice, the Naval Criminal Investigative Service and the Army Criminal Investigation Command, to ensure the integrity of the Defense Department’s procurement process,” said Leigh-Alistair Barzey, Resident Agent-in-Charge of the DCIS Boston Resident Agency. “This settlement agreement reflects that commitment and is a successful resolution of this investigation, which could not have occurred without the direction of the Department of Justice and the assistance of the Defense Contract Audit Agency’s Investigations Support Division.”
The civil lawsuit is captioned United States ex rel. Bartczak, et al. v. CyTerra Corporation., Civil Action No. 06-CA-10550-NMG.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.Court approves “without hesitation” HSBC DPA that imposes a record corporate forfeiture of $1.256 billion, independent monitor and important remedial measures.Read the Press Release
Court approves “without hesitation” HSBC DPA that imposes a record corporate forfeiture of $1.256 billion, independent monitor and important remedial measures.
Conspiracy, Fraud and Other Charges Filed Against Pair from Northeast Ohio in 84-Count IndictmentRead the Press Release
A pair from Northeast Ohio were named in an 84-count superseding indictment, charged with a variety of schemes that resulted in a loss of more than $43,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Charged are Angelique Bankston, 41, of South Euclid, Ohio, and Jocelyn Hale, 31, of Cleveland.
Bankston and Hale were each charged with one count of conspiracy to commit bank fraud, three counts of conspiracy to commit money laundering, one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of conspiracy to commit mail fraud.
In addition, Bankston was charged with five counts of bank fraud, eight counts of mail fraud, five counts of aggravated identity theft, and 59 counts of money laundering.
Hale was charged with four counts of bank fraud, one count of aggravated identity theft, and five counts of money laundering.
The superseding indictment alleges that Bankston and Hale, using identities of several individuals without their authority, defrauded Citizens Bank, Lending Club Corporation, and Wells Fargo Bank.
Bankston and Hale funded a Wells Fargo Bank account with counterfeit funds totaling $13,027.22, according to the indictment.
Bankston and Hale also funded a second Wells Fargo Bank account with illegally obtained funds.
The superseding indictment also alleges that Bankston defrauded the Ohio Department of Job and Family Services (ODJFS) and Dollar Bank.
Bankston funded a Dollar Bank account with illegally obtained funds totaling $27,460. Bankston defrauded ODJFS by causing the United States Postal Service to hold mail for several individuals, without their authority. Bankston then stole U.S. Bank ReliaCards issued by ODFJS in the amount of $2,800 in the names of those individuals, according to the indictment.
If convicted, Bankston’s and Hale’s sentence will be determined by the Court after review of factors unique to this case, including their prior criminal record, if any, their role in the offenses, and the characteristics of the violations. In all cases the sentence will not exceed the statutory maximum and in most cases they will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Mark S. Bennett and Special Assistant United States Attorney Perry D. Mastrocola, following an investigation by the Internal Revenue Service, Criminal Investigation, Federal Bureau of Investigation, and United States Postal Service, Cleveland.
An indictment is only a charge and is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Connecticut Man Charged with Receiving Child PornographyRead the Press Release
Defendant employed as a photographer of summer camp children and youth sports teams
BOSTON – A Connecticut man was in U.S. District Court in Springfield today after being charged with receiving child pornography.
Emil Kaufman, 21, of Hamden, Conn. was charged and arrested on June 26 in a criminal complaint with receipt of child pornography. Kaufman worked as a photographer of youth sports teams and as a photographer and website designer for a summer camp for children with learning disabilities in New York. Kaufman was released from custody today after a detention hearing.
According to court documents, on or about October 22, 2012, federal agents downloaded child pornography video files on the Giga Tribe peer-to-peer file sharing network from a user identified as “koolkidlime1991.” On June 17, 2013, federal agents again downloaded child pornography video files on the Giga Tribe network from “koolkidlime1991.” The agents determined that during each download, “koolkidlime1991” was using an Internet connection subscribed to by Kaufman’s father at a residence in Stockbridge, Mass. On June 26, 2013, agents executed a search warrant at the Stockbridge residence and seized, among other items, a MacBook Pro that contained numerous child pornography files. The agents also located Kaufman in the residence. Kaufman admitted to the agents that he had a “bad habit” of trading child pornography, he has approximately 300 to 400 files of child pornography, and he traded child pornography as recently as the previous night.
The statutory penalty for receipt of child pornography provides for a minimum mandatory of five years and a maximum of 20 years in prison, followed by up to a lifetime supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz and Bruce M. Focuart, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Boston, made the announcement today. HSI received assistance from the Massachusetts State Police, the Stockbridge Police Department, and the FBI in New Haven, Connecticut. The case is being prosecuted by Assistant U.S. Attorney Steve Breslow of Ortiz’s Springfield Branch.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274, and messages will be promptly returned.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the complaint affidavit are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Columbus Man Sentenced to 72 Months in Marijuana and Cocaine Distribution CaseRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – James E. Johnston, a/k/a “Monk,” 50, of Columbus was sentenced to 72 months in prison, five years of supervised release, a $1,000 fine, and ordered to forfeit three real estate properties located in Columbus for his role in distributing marijuana and cocaine in the Columbus, Ohio area.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Acting Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office, Kevin McDermott, Assistant Special Agent in Charge, DEA, and Columbus Police Chief Kim Jacobs announced the sentence handed down July 1 by Senior U.S. District Judge Peter C. Economus.
In December 2012, Johnston pleaded guilty to one count of conspiracy to possess with the intent to distribute and to distribute 1,000 kilograms or more of marijuana and five kilograms or more of cocaine, and to one count of money laundering.
According to court documents, in November 2007, the DEA, IRS, and Columbus Police began investigating a marijuana trafficking organization operating in the Columbus area. Their investigation revealed that multi-thousand pounds of marijuana were being transported from Arizona to the Columbus area.
Between the mid 2000’s and October 2008, Johnston was directly involved with this marijuana trafficking organization that used recreational vehicles, trailers, tractors trailers, and rental vehicles to transport marijuana and bulk currency to and from Arizona and Ohio. The organization utilized stash houses and other locations in central Ohio to receive and distribute large shipments of marijuana. In addition, between late 2000 and 2001 Johnston received more than five kilograms of cocaine from Arizona for distribution in the Columbus, Ohio area.
Also, between 2000 and 2008 Johnston used the proceeds and profits from the narcotics conspiracies to conduct numerous financial transactions in excess of $10,000, in which he invested in real estate and real estate renovations, and obtained loans from financial institutions in an effort to launder his narcotics proceeds and profits.
Johnston will forfeit the following real estate properties located in Columbus, Ohio at 1334-1336 West Broad Street, 52 North Rogers Avenue, and 300 Cypress Avenue.
“By following the money trail Special Agents of IRS, Criminal Investigation help to disrupt and dismantle major drug trafficking organizations that attempt to conceal the true source of their money from the government,” said Kathy A. Enstrom, Acting Special Agent in Charge, IRS, Criminal Investigation. “This sentencing is a direct result of the excellent partnership IRS, the U.S. Attorney’s Office, the DEA, and the Columbus Division of Police has in combating major drug trafficking organizations, which have such a negative impact on our community."
U.S. Attorney Stewart acknowledged the investigation by special agents and officers of IRS-Criminal Investigation, DEA, and the Columbus Division of Police, as well as Assistant United States Attorneys David DeVillers and Michael Hunter who represented the United States in this case.
# # #Co-Owners of Hemet Food Market Indicted on Charges of Obstructing Labor Department Investigation into Failure to Pay OvertimeRead the Press Release
RIVERSIDE, California – Two brothers who owned and managed the El Toro Market in Hemet have been charged by a federal grand jury in a scheme to obstruct a United States Department of Labor investigation that determined they failed to pay overtime to more than a dozen employees.
Jafar “Jeff” Rahman, 44, of San Jacinto, the general manager of the store, was arrested at the store this morning without incident. His brother, Jalal “Jim” Rahman, 50, of Vista, remains at large.
The Rahman brothers were charged in an indictment returned on June 12 that alleges a plot to make false statements to the Labor Department and to obstruct the agency’s investigation that concluded El Toro Market owed 13 current or former employees $47,155 in overtime pay.
The indictment also charges Jeff Rahman with obstruction of justice for attempting to coerce El Toro employees to lie about receiving their back pay.
“Business owners must play by the rules and treat all of their employees fairly,” said United States Attorney André Birotte Jr. “The Rahman brothers not only tried to take advantage of their workers by not paying them money they earned, they also lied to federal investigators in an attempt to cover up their illegal actions.”
In March 2008, the Department of Labor’s Wage and Hour Division conducted an investigation and determined that the Rahmans’ company had violated federal laws related to overtime. The Labor Department instructed the store to pay back wages to its employees, but continued investigation showed that the Rahmans lied to their employees about the orders from the Labor Department, according to the indictment.
In the fall of 2008, the Rahmans had the affected employees sign paperwork indicating they had received their back pay, which they had never received. The Rahmans also had the employees sign checks for the amounts they were owed, but then they allegedly withheld the checks from the workers. Jeff Rahman, the indictment alleges, sent documents to the Labor Department that included false statements that the employees had received their overtime pay.
In the summer of 2012, as a grand jury began considering the case and issued subpoenas to El Toro employees, Jeff Rahman paid off or attempted to pay off three current or former employees to try to get them to lie to the grand jury, according to the obstruction of justice charges in the indictment. Jeff Rahman allegedly also threatened a fourth employee with loss of his job if he insisted that he had never received his back wages.
“Today’s indictment demonstrates the OIG’s commitment to continue working with our law enforcement partners to investigate those who allegedly obstruct Federal investigations to defraud workers of their wages,” said Abel Salinas, Special Agent in Charge of the Los Angeles Regional Office of the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
The indictment charges both Rahmans with one count of conspiracy, eight counts of making false statements and eight counts of obstruction of proceedings. Each of these charges carry a statutory maximum penalty of five years in federal prison.
The indictment further charges Jeff Rahman with four counts of obstruction of justice. Each of these obstruction charges carries a statutory maximum penalty of 20 years in prison.
The Rahmans are expected to be arraigned this afternoon in United States District Court in Riverside.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
The investigation in this case was conducted by the United States Department of Labor’s Office of Inspector General and Wage and Hour Division. Assistance was provided by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Release No. 13-090
Citizen of El Salvador Sentenced to Prison for Illegally Reentering U.S. After DeportationRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that MAURICIO ARTURO MADRID, also known as Mauricio Nava-Morales, 35, a citizen of El Salvador, was sentenced yesterday by United States District Judge Janet C. Hall in New Haven to six months of imprisonment for illegally reentering the United States after he was deported.
According to court documents and statements made in court, between September 2008 and August 2010, MADRID was removed from the United States to El Salvador on three separate occasions. MADRID again returned to the U.S. and, on July 30, 2012, he was arrested by Stamford Police and subsequently convicted of driving under the influence, second degree assault, interfering/resisting arrest and assault on personnel. On January 31, 2013, he was sentenced to six years of incarceration, suspended after 25 months.
Judge Hall ordered that MADRID begin serving his six-month federal sentence after his release from state custody.
MADRID has been detained since his arrest. On February 27, 2013, he pleaded guilty to one count of illegal reentry of a removed alien.
Since the age of 23, MADRID has been arrested at least 15 times while in the U.S.
This matter was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, with the assistance of the Stamford Police Department. The case was prosecuted by Assistant United States Attorney Deborah R. Slater.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Chief Executive Officer and President of Investment Fund Plead Guilty in Manhattan Federal Court to Orchestrating Nearly $10 Million Dollar Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ABDUL WALJI and RENIERO FRANCISCO, the Chief Executive Officer and President, respectively, of Arista LLC (“Arista”), a California investment fund, pled guilty today in Manhattan federal court to defrauding and misappropriating nearly $10 million from more than 35 investors by misrepresenting the nature and performance of the fund, and issuing fraudulent account statements to investors to cover up massive losses. WALJI also pled guilty to perpetrating a multi-million dollar fraudulent scheme with pension plan funds that he managed through three California-based trusts: Allied Benefits, Inc., Allied Benefits Trust, and Stone Lamm Trust (collectively, the “Trusts”). Both defendants were charged in December 2012, and pled guilty today before U.S. District Judge Denise Cote.
Manhattan U.S. Attorney Preet Bharara said: “Abdul Walji and Reniero Francisco told one lie after another in order to squeeze millions of dollars out of their investors, even as they misappropriated nearly $10 million, including at least $2.7 million solely for their own personal benefit. Walji even went a step further and orchestrated a second scheme that ultimately cost his victims another approximately $9.5 million. With today’s guilty pleas, they will begin to be held responsible for their actions and repay those wronged by their unlawful conduct.”
According to the three-count Superseding Information to which WALJI pled guilty, the Indictment to which FRANCISCO pled guilty, the defendants’ plea agreements and other documents in the public record:
The Arista Fraudulent Scheme
Arista began operations as an investment firm in February 2010, with its principal place of business in Newport Coast, California. In April 2011, Arista became a registered commodity pool operator (“CPO”) with the United States Commodity Futures Trading Commission (“CFTC”), and a National Futures Association (“NFA”) member.
In early 2010, WALJI and FRANCISCO began to solicit individuals to invest in Arista. From 2010 through 2011, the defendants carried out their fraudulent scheme through three methods. First, WALJI and FRANCISCO misrepresented to several Arista investors the nature of the company’s investments and the returns that investors would receive from investing in Arista. For example, WALJI and FRANCISCO falsely told investors that their money would be invested in safe, risk-free securities, when in fact much of the money was invested in options and futures. Second, WALJI and FRANCISCO sent fraudulent account performance statements to Arista investors that misrepresented the value of their investments. In an effort to secure additional contributions, the defendants also concealed Arista’s trading losses, and told investors that they were profiting from their investments when they were actually losing money. Finally, WALJI and FRANCISCO misappropriated at least $2.7 million from Arista’s investors through fees to which they were not entitled, and which WALJI and FRANCISCO diverted for their own personal benefit. Based on their false representations, WALJI and FRANCISCO collected nearly $10 million from over 35 investors, and they ultimately misappropriated a large portion of the money.
Walji’s Pension Plan Fraudulent Scheme
From early 2008 through June 2013, WALJI also perpetrated a separate fraudulent scheme using pension plan funds that he administered. Similar to the scheme set forth above, WALJI executed his fraudulent scheme through three principal methods. First, WALJI made oral misrepresentations to existing and potential clients of the Trusts concerning: (i) the nature of the Trusts’ pension plan investments; (ii) the investment value and past performance of the pension plans; and (iii) the source of funds distributed to plan participants who had reached retirement and/or who had requested distributions. Second, WALJI distributed fraudulent statements to clients concerning the value of their accounts and the prior performance of their pension plans in order to forestall redemption requests, induce new clients to contribute to the plans, and induce existing clients to make additional contributions. As selected clients reached retirement age or requested disbursements, WALJI sent those clients money that he represented to be proceeds of their individual pensions, when in fact he knew that the purported disbursements were often funds contributed by other clients. Third, WALJI misappropriated approximately $300,000 of client funds for his personal use. In total, this scheme caused losses to approximately 35 additional victims in an aggregate amount of approximately $9.5 million.
WALJI, 60, of San Juan Capistrano, California, pled guilty to one count of conspiracy to commit securities fraud and wire fraud, one count of commodities fraud, and one count of securities fraud. The securities fraud charge carries a maximum sentence of 20 years in prison; the commodities fraud charge carries a maximum sentencing of 10 years in prison; and the conspiracy charge carries a maximum sentence of five years in prison. FRANCISCO, 57, of Newport Coast, California, pled guilty to one count of conspiracy to commit securities fraud and wire fraud and one count of securities fraud.
In connection with their guilty pleas, WALJI consented to forfeit $13.6 million and FRANCISCO consented to forfeit $4.1 million. The defendants also agreed to forfeit the proceeds of several bank and trading accounts.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation and also thanked the U.S. Commodities Futures Trading Commission for its assistance.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys David I. Miller and Christopher D. Frey are in charge of the prosecution. Assistant U.S. Attorney Paul Monteleoni is in charge of the asset forfeiture related to the prosecution.
U.S. v. Abdul Walji S1 Information
US v. Abdul Walji & Reniero Francisco IndictmentCharlotte Armed Career Criminal Sentenced to 20 Years in Prison for Firearms ViolationsRead the Press Release
CHARLOTTE, N.C. – Chief U.S. District Judge Frank D. Whitney sentenced a Charlotte armed career criminal to 20 years in prison for firearms violations, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Shirley Ingram, Jr., a/k/a Rahim, 56, of Charlotte, was also sentenced to three years of supervised release following his prison term.
Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, joins U.S. Attorney Tompkins in making today’s announcement.
In January 2011, following a four-day trial, a Charlotte jury convicted Ingram for possessing a firearm in furtherance of a drug trafficking crime and for being a felon in possession of a firearm. According to evidence presented at trial and yesterday’s sentencing hearing, on August 8, 2009, law enforcement responded to a 911 emergency call involving domestic violence. Court records indicate that when law enforcement arrived at the scene and while investigating the call, they discovered that Ingram had a Glock, Model 27, .40 caliber pistol in a cooler in the trunk of a 2003 BMW vehicle he was driving. Along with the pistol in the car, law enforcement also found marijuana residue and a digital scale. Ingram’s prior felony convictions prohibit him from carrying a firearm.
At sentencing, Ingram was deemed an armed career criminal and received an enhanced sentence. Ingram had been previously convicted of over 20 crimes, including second degree kidnapping; breaking, entering and larceny; assault on a female; and possession of controlled substances. Ingram had been previously deemed an armed career criminal in 1993 and was sentenced to 235 months in prison in U.S. District Court in Charlotte. In that case, Ingram was observed by a Charlotte police officer walking down a street in Charlotte carrying a shotgun, which was later found to be stolen.
“Ingram’s 20-year prison sentence was warranted given the facts of this case and his extensive criminal history. Protecting our community by taking violent repeat offenders off the streets remains one of the cornerstone functions of this office,” said U.S. Attorney Tompkins.
Ingram has been in federal custody in the Western District of North Carolina since his arrest in April of 2010. Upon designation of a federal facility, he will be transferred into the custody of the Federal Bureau of Prisons. Federal sentences are served without the possibility of parole.
The ATF, assisted by the Charlotte-Mecklenburg Police Department, handled the investigation, as part of ATF’s ongoing commitment to reduce violent crime and other threats to public safety. The prosecution was handled by Assistant U.S. Attorney Ann Claire Phillips, of the U.S. Attorney’s Office in Charlotte.
Charleston Woman with Detroit Pill Ties Pleads Guilty to Federal Oxycodone ChargeRead the Press Release
CHARLESTON, W.Va. – A Charleston woman with ties to a Detroit pill supplier pleaded guilty today to a federal oxycodone charge, announced U.S. Attorney Booth Goodwin. Christy Stevens, 31, pleaded guilty in federal court in Charleston to conspiracy to distribute oxycodone. On July 6, 2011, police conducted a traffic stop of Stevens’ vehicle. During a search of the vehicle, officers observed a large amount of cash inside Stevens’ purse. Stevens agreed to provide a statement to police regarding the source of the cash. After being advised of her Miranda rights, Stevens told police that the $8,000 in her purse was proceeds from illegal pill transactions.
Stevens also told police that for eight months, she received oxycodone pills from a source of supply located in Detroit. Stevens later sold the 30-milligram oxycodone pills in and around Charleston and also took a portion of the pills for her personal use.
Stevens faces up to 20 years in federal prison when she is sentenced on October 17, 2013 by United States District Judge Thomas E. Johnston.
The Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney John Frail is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Caroline County Man Sentenced for Stealing Property from the Goddard Space Flight CenterRead the Press Release
Stole Tools and Scaffolding Which He Sold at Pawn Shops in Baltimore, Anne Arundel and Queen
Anne’s Counties
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Brandon Scott Gauss, age 28, of Preston, Maryland today to a year and a day followed by three years of supervised release for stealing government property from the Goddard Space Flight Center, part of the National Aeronautics and Space Administration (NASA). Judge Grimm also ordered that Gauss pay restitution of $11,574.35 to the U.S. government; $4,461 to Fast Cash Pawn Shop in Annapolis, Maryland; and forfeit at least $29,412.89.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Inspector General Paul K. Martin, NASA Office of Inspector General.
According to his plea agreement, Gauss was a contract employee at NASA. As an engineering technician at the Goddard Space Flight Center, he had access to tools and other property NASA owned. From October 2011 through November 2012, Gauss stole tools and aluminum scaffolding belonging to the government, which he sold to pawn shops for cash. Gauss made over 60 visits to pawn shops throughout Maryland, including Baltimore, Anne Arundel and Queen Anne Counties, and received at least $16,974. The government has recovered some of the items, worth at least $29,736. Gauss admits that he owes the government at least $11,574.35, the money he received from selling the stolen materials the government has been unable to recover.
United States Attorney Rod J. Rosenstein praised the NASA OIG, Office of Investigations for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Leah J. Bressack and Sujit Raman, who prosecuted the case.
Canadian National Pleads Guilty to Conspiring to Provide Material Support to the Tamil TigersRead the Press Release
Earlier today, defendant Suresh Sriskandarajah pleaded guilty in federal court in Brooklyn, New York, to conspiring to provide material support to a foreign terrorist organization, the Liberation Tigers of Tamil Eelam (“LTTE”), also known as the Tamil Tigers, in connection with his attempt to procure sophisticated military technology, including submarine and warship design software and night vision equipment, for the LTTE. Sriskandarajah faces a maximum term of 15 years’ imprisonment. Six of Sriskandarajah’s co-defendants were previously convicted of terrorism-related offenses in connection with their support for the LTTE.
Sriskandarajah’s guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; Aaron T. Ford, Special Agent-in-Charge, Federal Bureau of Investigation, Newark Field Office, and Raymond W. Kelly, Commissioner of the New York City Police Department. The guilty plea was accepted by United States District Judge Raymond J. Dearie.
As detailed in court filings, between September 2004 and April 2006, Sriskandarajah and several co-conspirators assisted a principal LTTE procurement officer in researching and acquiring aviation equipment, submarine and warship design software, night vision equipment and communications technology. Sriskandarajah used students as couriers to smuggle prohibited items into territory in Sri Lanka that was controlled by the LTTE at that time. Additionally, Sriskandarajah helped the LTTE launder its proceeds in the United States and elsewhere. Following his indictment in the Eastern District of New York, Sriskandarajah, who is a Canadian citizen, was extradited to the United States from Canada, arriving in 2012.
The LTTE was founded in 1976 and uses illegal methods to raise money, acquire weapons and technology, and publicize its cause of establishing an independent Tamil state in northern Sri Lanka. The LTTE began its armed conflict against the Sri Lankan government in
1983, and utilizes a guerrilla strategy that often includes acts of terrorism. At its height, the LTTE controlled most of the northern and eastern coastal areas of Sri Lanka. Over the past 19 years, the LTTE has conducted approximately 200 suicide bombings, resulting in the deaths of hundreds of victims, and carried out numerous political assassinations, including the May 1991 assassination of former Indian Prime Minister Rajiv Gandhi, the 1993 assassination of the President of Sri Lanka, Ranasinghe Premadasa, the July 1999 assassination of Neelan Thiruchelvam, a member of the Sri Lankan parliament, the June 2000 assassination of C.V. Goonaratne, the Sri Lankan Industry Minister, the August 2006 assassination of the Sri Lankan government’s peace secretariat, Ketheshwaran Loganathan, the January 2008 assassination of Sri Lankan Minister for Nation Building, D.M. Dassanayake, and the April 2008 assassination of Sri Lankan Highways Minister, Jeyaraj Fernandopulle. In May 2009, the LTTE’s forces in Sri Lanka were defeated by the Sri Lankan government.In 1997, the LTTE was designated by the U.S. State Department as a Foreign Terrorist Organization, and the LTTE therefore may not legally raise money or procure equipment or materials in the United States.
“The defendant helped the LTTE, an organization that pioneered terrorist tactics and has killed numerous civilians in brutal terrorist attacks, obtain sophisticated military technology and equipment,” stated United States Attorney Lynch. “Claiming to fight for freedom, the LTTE instead created a climate of fear and bloodshed, systematically assassinating those who stood in the way of their terrorist goals. We will continue to locate and prosecute those who fund and support terrorist organizations, wherever they reside.” Ms. Lynch extended her grateful appreciation to the New York and Newark Field Offices of the FBI, and the New York City Police Department.
The government’s case is being prosecuted by Assistant U.S. Attorney Alexander Solomon.
The Defendant
Name: SURESH SRISKANDARAJAH
Age: 32Burlington Man Pleads Guilty to Selling More Than $600,000 in Stolen MerchandiseRead the Press Release
BOSTON – A Burlington man pleaded guilty today to shoplifting more than $600,000 worth of merchandise from retail stores in Massachusetts and New Hampshire, then selling it on Ebay’s Half.com website.
John C. Strang, 67, pleaded guilty before U.S. District Judge Rya W. Zobel to interstate transportation of stolen property.
From at least 2007 through 2013, Strang shoplifted large quantities of merchandise - primarily books, audiobooks, and Lego products - from retail stores such as Barnes & Noble and The Paper Store. In total, Strang stole tens of thousands of items, with a total retail value of at least $600,000. He then sold them online at Half.com, an Ebay subsidiary, using the name “booksgoodtome.” Strang listed the stolen items at prices which were typically 40-50% of their retail prices. Strang then sold and shipped the stolen merchandise to purchasers throughout the United States. He routinely received payment of more than $2,000 every two weeks from Half.com.
Sentencing is scheduled for Oct. 15, 2013. The maximum statutory penalty is 10 years in prison, followed by three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz and Steven D. Ricciardi, Special Agent in Charge of the U.S. Secret Service, and Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit.
Boise Man Sentenced for Conspiring to Distribute MethRead the Press Release
BOISE – Terry Lee O’Brien, 53, of Boise, Idaho, was sentenced today in United States District Court to 66 months in prison followed by three years of supervised release for conspiracy to possess with intent to distribute 50 grams or more of actual methamphetamine, U.S. Attorney Wendy J. Olson announced. O’Brien appeared this morning before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
On April 11, 2013, O’Brien pleaded guilty to count one of the indictment charging him and two others with conspiracy to distribute methamphetamine in Idaho. According to court documents, O’Brien admitted that between March 29 and May 21, 2012, he conspired with his co-defendants, Christopher Palacios and Krystal Amber Reese, to distribute methamphetamine in the Twin Falls area.
Christopher Palacios, a/k/a “Paco,” 40, of Filer, Idaho, pleaded guilty on February 26, 2013, to count one of the indictment. He faces a minimum term of 10 years in prison, a maximum fine of $10 million, and at least five years of supervised release. Sentencing is set for August 13, 2013.
Krystal Amber Reese, 31, of Filer, pleaded guilty today to count 10 of the indictment charging her with possession with intent to distribute methamphetamine. According to court documents, Reese admitted that she knowingly possessed with intent to distribute approximately 27.10 grams of a mixture and substance containing at least five grams of actual methamphetamine. She faces a minimum term of five years in prison, a maximum fine of $5 million, and at least four years of supervised release. Sentencing is set for September 23, 2013.
The case was investigated by the Idaho State Police.
Bay Area Law Firm Paralegal Pleads Guilty to FraudRead the Press Release
OAKLAND – Ana Lissa Reyes pleaded guilty in federal court in Oakland today to mail fraud and tax evasion, announced United States Attorney Melinda Haag.
In pleading guilty, Reyes admitted to having worked as a secretary, office manager, and paralegal for a Bay Area law firm. Reyes admitted that from about 2006 through June 2011, she, without authorization, settled claims without the knowledge of the law firm or its clients and stole the settlement proceeds. Reyes admitted to engaging clients without the law firm’s knowledge and to stealing clients’ retainer fee payments. Reyes also admitted that in carrying out the scheme to defraud, she created a bogus company, Lincoln Litigation, to correspond with clients without the law firm’s knowledge, and to defraud the clients into believing that their cases were ongoing. Reyes admitted to embezzling a total of $327,795.05 from the law firm and its clients.
Reyes also admitted to under-reporting her income for the calendar years 2006 through 2011. For each of these tax years, Reyes admitted that she knew her joint taxable income was substantially in excess of the amount stated on the return, resulting in additional tax due and owing to the United States.
Reyes, 42, of San Lorenzo, California, was charged by an information on January 25, 2013 with five counts of mail fraud in violation of Title 18 U.S.C. § 1341, and six counts of tax evasion in violation of Title 26 U.S.C. § 7201. Reyes is currently on pre-trial release on a $100,000 bond.
Reyes’ sentencing hearing is scheduled for October 10, 2013 at 2:00 p.m. before the Honorable Yvonne Gonzalez Rogers, U.S. District Court Judge, in Oakland. The maximum statutory penalty for each count of mail fraud, in violation of Title 18 U.S.C. § 1341, is 20 years’ imprisonment and a fine of $250,000, plus restitution. The maximum statutory penalty for each count of tax evasion, in violation of Title 26 U.S.C. § 7201, is 6 years’ imprisonment and a fine of $250,000, plus restitution. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Wade Rhyne is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Legal Assistant Janice Pagsanjan and Paralegal Patty Lau. The prosecution is the result of a year-long investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation.
Barry Diller to Pay $480,000 Civil Penalty for Violating <br /> Antitrust Premerger Notification RequirementsRead the Press Release
Corporate investor Barry Diller will pay a $480,000 civil penalty to settle charges that he violated premerger reporting and waiting requirements when he acquired voting securities of The Coca Cola Company, the Department of Justice announced today.The Justice Department’s Antitrust Division, at the request of the Federal Trade Commission (FTC), filed a civil antitrust lawsuit today in U.S. District Court in Washington, D.C., against Diller for violating the notification requirements of the Hart-Scott-Rodino (HSR) Act of 1976. At the same time, the department filed a proposed settlement that, if approved by the court, will settle the charges.
The HSR Act of 1976, an amendment to the Clayton Act, imposes notification and waiting period requirements on individuals and companies over a certain size before they consummate acquisitions resulting in holding stock or assets above a certain value, which at the time of Diller’s violations ranged from $63.4 million to $68.2 million and is currently $70.9 million.
Federal courts can assess civil penalties for premerger notification violations under the HSR Act in lawsuits brought by the Department of Justice. For a party in violation of the HSR Act the maximum civil penalty is $16,000 a day.
For further details on this matter, contact the FTC’s Office of Public Affairs, 202-326-2180.Augusta Man Sentenced to 15 Years in Prison for Fraud at Funeral and Nursing HomesRead the Press Release
AUGUSTA, GA: BRYANT KEITH EVANS WEBB, 44, of Augusta, Georgia, was sentenced on June 27, 2013 by United States District Court Dudley H. Bowen, Jr. to 15 years imprisonment based on WEBB’s earlier guilty pleas to three counts of bank fraud, one count of wire fraud, and one count of aggravated identity theft.
Evidence presented at hearings in this case showed that while working at Peoples Funeral Home in Augusta, Georgia, WEBB defrauded his employer and deceased individuals’ families out of more than $215,000 from insurance policy proceeds and bank accounts. After leaving Peoples Funeral Home, WEBB began working at Mother and Daughter Personal Care Home in Augusta, Georgia, where he stole over $33,000 from disabled nursing home residents, some of whom are veterans.
United States Attorney Edward J. Tarver said, “Even though this defendant had an extensive history of financial crimes, he obtained employment that gave him access to some of the most vulnerable victims possible. In those positions of trust, he took advantage of the elderly, the disabled, and grieving families. The lengthy prison sentence in this case protects the community from the defendant’s continued crimes and sends a message that such reprehensible conduct cannot be tolerated.”
Judge Bowen has delayed ordering WEBB to pay restitution to the victims of his crimes for 90 days to allow time for anyone who believes that they are a victim of WEBB’s crimes to come forward with that information. If you believe you are a victim, please contact:
David M. Stewart
United States Attorney’s Office
P.O. Box 2017
Augusta, Georgia 30903
(706) 724-0517After he is released from prison, WEBB will serve five years of supervised release. Regarding the length of the prison sentence, Tarver noted that there is no parole in the federal system.
Investigator Michael Lanham of the Richmond County Sheriff’s Office and FBI Special Agent Paul Kubala conducted the investigation of WEBB. Assistant United States Attorney David Stewart prosecuted the case. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.Anchorage Woman sentenced to 95 months in prison for drug and gun crimesRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a resident of Anchorage has been sentenced in federal court in Anchorage for her conviction of possession of a controlled substance with intent to distribute and felon in possession of firearms.
Nancie Caridad Modeste, 27, from Anchorage, Alaska, was sentenced yesterday by U.S. District Court Judge Sharon L. Gleason to 95 months in prison.
According to information presented to the court by Special Assistant U.S. Attorney Erin White Bradley, who prosecuted the case, Modeste possessed over 100 grams of crack cocaine and over 12 grams of powder cocaine on September 5, 2012. At the time of her arrest, Modeste was in a vehicle with a large amount of crack cocaine located in a box beneath her driver’s seat. Law enforcement found Modeste’s fingerprints on the box and they found a scale commonly used to weigh drugs for sale inside of the box. Law enforcement also found three semi-automatic firearms inside of the vehicle’s center console. Modeste admitted to possessing the illegal controlled substances, and the firearms. She further admitted to selling crack cocaine. Modeste has a prior conviction for felony evidence tampering dating back to 2005.
Prior to imposing sentence, Judge Gleason noted the serious nature of the offense, along with Modeste’s history of serious crimes. Judge Gleason also noted a need to protect the public and to deter this type of criminal behavior.
Ms. Loeffler commends the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Alaska State Troopers for the investigation of this case. SAUSA Bradley is a prosecutor in the U.S. Attorney’s Office funded by the Municipality of Anchorage for the purpose of prosecuting gang-related and violent crime cases.
Monday 1 July 2013
York City Man Indicted for Drug Trafficking and Possession of A FirearmRead the Press Release
The United States Attorney's Office for the Middle District Pennsylvania announced that a federal grand jury in Harrisburg returned an indictment on June 26 charging a York City man for drug trafficking and possession of a firearm.
According to United States Attorney Peter J. Smith, on December 12, 2012, the Pennsylvania State Police and York City Police arrested Charlie Rivera, age 23, from York. Rivera was wanted by local officials for failing to report for service for a drug trafficking sentence. When officers arrested Rivera, they allegedly found in his vehicle crack cocaine, powder cocaine, heroin, oxycodone, and a firearm.
Prosecution is assigned to Assistant United States Attorney Michael A. Consiglio and Special Assistant United States Attorney David Sunday from the York County District Attorney’s Office.Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In these particular cases, the maximum penalty under the federal statute is life imprisonment for the defendant and a term of supervised release following imprisonment and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Yonkers Gang Leader Convicted in Federal Court of Racketeering Charges, Murder, Conspiracy to Murder, Attempted Murder, Narcotics, and Firearms OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that STEVEN KNOWLES, 25, was convicted today in White Plains of various racketeering charges, murder, conspiracy to murder, attempted murder, narcotics conspiracy, and firearms offenses following a four-week jury trial before the U.S. District Judge Kenneth M Karas. The jury convicted KNOWLES of charges arising out of his involvement, from 2000 through 2013, in the criminal activities of the Elm Street Wolves gang (the “Wolves”) – a violent street gang that was involved in drug-trafficking and multiple acts of violence, including murder and attempted murder, in Yonkers, New York.
Manhattan U.S. Attorney Preet Bharara said: “It was four years ago almost to the day, July 4, 2009, that Steven Knowles shot down rival gang member Christopher Cokley, killing him in cold blood. With today’s verdict, Knowles is now held accountable for not only Cokley’s murder, but for the years of violence and drug dealing committed by Knowles on the streets of Yonkers. This conviction is a continuation of the long-standing commitment by federal, state, and local law enforcement authorities to rid Yonkers and other communities in the Southern District of New York of violent drug gangs. Law enforcement has pledged itself to this cause for several years now and has not stood down.”
According to the Superseding Indictment and evidence admitted at trial:
From 2000 through 2013, KNOWLES was a member, and then leader, of a racketeering enterprise – the Elm Street Wolves. As part of his participation in that enterprise, KNOWLES conspired to murder a member of a rival gang, the Strip Boyz, which culminated in the violent murder by KNOWLES and others of Christopher Cokley on July 4, 2009. On October 14, 2007, KNOWLES also participated in an attempted murder of Tremaine Garrison, a/k/a “Triggermain,” also a member of the Strip Boyz. Further, KNOWLES participated in a more than decade-long conspiracy to distribute kilograms of crack cocaine within a several block radius of Elm Street and Oak Street in Southwest Yonkers, New York. The evidence at trial also showed that KNOWLES and other members of the Wolves possessed, brandished, and discharged a number of firearms in connection with their drug trafficking and racketeering activities with the Elm Street Wolves gang.
KNOWLES was convicted of one count of racketeering, one count of racketeering conspiracy, one count of conspiracy to murder in aid of racketeering, one count of murder in aid of racketeering, one count of conspiracy to distribute or possess with intent to distribute 280 grams and more of crack cocaine, two counts of discharging a firearm in furtherance of a crime of violence or a drug-trafficking crime, and one count of discharging a firearm in connection with the murder of Christopher Cokley on July 4, 2009. He was acquitted of one count of conspiracy to commit murder, one count of attempted murder, and one count of possession, use, and carrying a firearm in furtherance of a crime of violence, all stemming from shooting another member of the Strip Boyz. KNOWLES faces a mandatory sentence of life in prison, plus 35 years. KNOWLES is scheduled to be sentenced on May 29, 2014, at 10:00 a.m. before Judge Karas.
Mr. BHARARA praised the outstanding investigative work of the FBI and the Yonkers Police Department. He also thanked the Westchester County Department of Public Safety and the Westchester County District Attorney’s Office for their assistance in the case. He added that the investigation is continuing.
This case is being handled by the Office’s White Plains Division and Violent Crimes Unit. Assistant United States Attorneys Andrew Bauer and Jessica Ortiz are in charge of the prosecution.
Wisconsin Man Pleads Guilty to Defrauding Local RetailersRead the Press Release
A man who defrauded local retailers by switching UPC codes on consumer products pled guilty today in federal court in Cedar Rapids.
Jeremy J. Fishnick, age 26, from Lancaster, Wisconsin, was convicted of one count of wire fraud.
In a plea agreement, Fishnick admitted that, between at least July 2012 and November 20, 2012, he using home computer equipment and a printer to create fraudulent UPC codes on adhesive labels. He then entered retail stores and covered real UPC codes on higher-priced models of certain products using the fraudulent UPC codes he created. In so doing, Fishnick caused the items to reflect substantially lower prices when electronically scanned at checkout. Fishnick admitted fraudulently purchasing products from stores in, at least, Dubuque, Iowa, Maquoketa, Iowa, Anamosa, Iowa, Cedar Rapids, Iowa, Coralville, Iowa, Monticello, Iowa, and Prairie Du Chien, Wisconsin. Fishnick also admitted his scheme caused a loss to retailers of more than $30,000.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Fishnick was released on bond pending sentencing. Fishnick faces a possible maximum sentence of twenty years’ imprisonment, a $250,000 fine, a $100 special assessment, and three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Peter Deegan and was investigated by the Dubuque, Iowa, Police Department; the Maquoketa, Iowa, Police Department; the Anamosa, Iowa, Police Department; the Cedar Rapids, Iowa, Police Department; the Coralville, Iowa, Police Department; the Monticello, Iowa, Police Department; the Vinton, Iowa, Police Department; the Lancaster, Wisconsin, Police Department; and the Prairie Du Chien, Wisconsin, Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-1009 LRR.
White River Woman Charged and Sentenced for Simple Assault and Aiding and AbettingRead the Press Release
United States Attorney Brendan V. Johnson announced that a White River, South Dakota woman convicted of Simple Assault and Aiding and Abetting has pled guilty to the charges and was sentenced on June 28, 2013 by U.S. Magistrate Judge Mark A. Moreno.
Jarashae Vanderwalker, age 20, was sentenced to 12 months’ probation and $10 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on April 3, 2011, when Vanderwalker and others assaulted the victim with a bat. The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services.
The case was prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.
Vanderwalker was released.
U.s. Attorney’s Office Remembers Colleague Albert J. Winters, Jr.Read the Press Release
U.S. Attorney Dana Boente, on behalf of the U.S. Attorney’s Office for the Eastern District of Louisiana, noted the passing of Albert J. Winters, Jr., who served the Department of Justice for nearly 35 years in the New Orleans area.
After graduating from Loyola Law School in 1968, Winters became a member of the Louisiana Bar in the same year and maintained a general practice for a few years. Winters joined the United States Attorney’s Office located in New Orleans in 1972 as an Assistant U.S. Attorney. In 1983, Winters became the Organized Crime and Racketeering Section Strike Force Chief, a Department of Justice Section which worked closely with, but was separate from, the local U.S. Attorney’s Office. In 1987, Winters returned to the U.S. Attorney’s Office where he remained until he retired in April, 2006.
Winters’ service was highlighted by the various positions he held within the U.S. Attorney’s Office over the years. Winters was Chief of Narcotics, Chief of the Criminal Division, First Assistant U.S. Attorney on two occasions, and Senior Litigation Counsel in addition to his service as Strike Force Chief. Winters also served as a Special Assistant U.S. Attorney for the Southern District of Florida in Miami from 1986 through 1990 during which he participated in investigations and prosecutions of high level Colombian drug cases and contract murder cases involving the killing or attempts to kill federal witnesses.
Various prosecutions highlighted Winters’ career including the prosecution of Carlos Marcello and the sitting Louisiana Commissioner of Administration, Charles Roemer; the Gem Stone marijuana conspiracy case which resulted in 117 convictions including law enforcement officers and a State Judge and which resulted in approximately 25 million dollars in forfeiture and seizure of over one and a quarter million pounds of marijuana and the Len Davis case which resulted in 16 convictions of various individuals involved in cocaine trafficking and the protection of traffickers by police officers.
The U.S. Attorney’s Office in the Eastern District of Louisiana wishes to acknowledge the dedicated service of our friend and colleague and hopes to celebrate his life and service with all who served with him from 5:00 p.m. until 7:00 p.m. at the Cannery, 3803 Toulouse St. in New Orleans on Tuesday, July 2, 2013.
Two-time Convicted Sex Offender Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that PETER LYNN SCHUETT, 54, of Manchester, pleaded guilty today before United States District Judge Janet Bond Arterton in New Haven to one count of receipt and distribution of child pornography.
According to court documents and statements made in court, on February 1, 2013, the Connecticut State Police, Manchester Police Department and Homeland Security Investigations executed an arrest warrant on SCHUETT for violation of Connecticut’s state sex offender registry law. Prior to execution of the warrant, SCHUETT consented to a search of his mobile phone, which revealed that he had received and distributed images and videos of child pornography.
Subsequent forensic analysis of SCHUETT’s phone and email accounts has revealed hundreds of images and videos of child pornography. The images and videos contained depictions of prepubescent minors and minors under the age of 12 engaged in sexually explicit conduct, as well as material depicting sadistic and masochistic conduct or other depictions of violence. The investigation revealed that SCHUETT also engaged in sadistic and masochistic chats with other individuals that advocated graphic violence against children.
SCHUETT has previous convictions in Texas in 2000 for possession of child pornography, and in Connecticut in 2008 for importing child pornography and promotion of a minor in an obscene performance.
Judge Arterton has scheduled sentencing for October 1, 2013, at which time SCHUETT faces a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 40 years. The penalties in this case are enhanced because of SCHUETT’s criminal history.
SCHUETT has been detained since his arrest on February 1, 2013.
This case is being investigated by Homeland Security Investigations, with assistance from the Connecticut State Police and the Manchester Police Department. The case is being prosecuted by Assistant United States Attorney Sarala V. Nagala.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Two Charged for Trying to Provide A Cell Phone to Federal InmateRead the Press Release
A two-count information was filed charging two people with aiding and abetting each other in an attempt to provide a cell phone to an inmate of a federal correctional facility, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, today announced that.
Charged are Anyelina Lespin, age 34, of the Bronx, New York, and Kendy Hernandez, age 29, of the Northeast Ohio Correctional Center.
Count one charges that Lespin, aided and abetted by Hernandez, attempted to provide a prohibited object, to-wit, a cell phone, to an inmate of a federal correctional facility on Jan. 12, 2013.
Count two charges that Hernandez, an inmate of a federal correctional facility, aided and abetted by Lespin, attempted to obtain a prohibited object, to-wit, a cell phone.
The information was filed by Assistant United States Attorney Gregory C. Sassé after investigation by the Federal Bureau of Investigation.
If convicted, the defendant’s sentence will be determined by the Court after a review of factors unique to the case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Twelfth Defendant Pleads Guilty in Dodge City Racketeering CaseRead the Press Release
TWICHITA, KAN. – A member of a Dodge City street gang charged in a federal racketeering case has pleaded guilty, U.S. Attorney Barry Grissom said today.
Juan Torres, 22, Dodge City, Kan., pleaded guilty to one count of aiding and abetting attempted murder, which was a violent crime in aid of racketeering. He admitted he was involved in an Oct. 4, 2008, incident in which two people were shot.
In his plea, Torres admitted he was a Diablos Viejos (DV) gang member associated with the Norteno street gang when he accompanied two co-defendants in an attack at the home of a member of the rival Sureno gang. On Oct. 4, 2008, Torres and two co-defendants gathered in a barn behind a house at 10770 Kettle Way near Dodge City, which was a hangout for the gang. Later that day, Torres and the two co-defendants drove to the home of Abel Hernandez, a known Sureno gang member, and Rumalda Hipolito. Outside the home, Hernandez’s brother and others were drinking beer. One of the Nortenos began harassing them and shouting Norteno slogans. After someone threw a beer bottle at the Nortenos’ car, Torres and the two co-defendants drove away. The three Nortenos obtained a firearm, an SKS or AK-47 style weapon and returned to Hernandez’s house, parking in an alley half a block away. After approaching the house on foot, co-defendant Gonzalo Ramirez discharged multiple rounds from the firearm. The gunshots hit the house, striking Abel Hernandez and Rumalda Hipolito. Hipolito suffered a gunshot wound to the arm. Hernandez suffered a gunshot wound to the leg. Investigators found 10 bullet holes in the house and recovered 20 shell casings at the scene. After the shooting, Torres and the two co-defendants returned to the house on Kettle Way, where they hid the car in the barn.
Sentencing is set for Sept. 16. He faces a maximum penalty of 10 years in federal prison and a fine up to $250,000.
Grissom commended the Dodge City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ford County Sheriff’s Office, the Kansas Bureau of Investigation, the Ford County Attorney’s Office, Assistant Aaron Smith and Assistant U.S. Attorney Lanny Welch for their work on the case.
Three Florida Residents Arrested on Charges of FraudRead the Press Release
Three individuals charged in connection with operating a series of fraudulent business opportunity companies were arrested Friday following their indictment by a federal grand jury in Miami on June 25, 2013, the Justice Department and the U.S. Postal Inspection Service announced today. Mitchell Berman (aka Brian Griffin), of Boca Raton, Fla., Robert Gallo (aka Bobby Pace, Vincent Pastone, Joe Barone, Bobby Marino, Anthony Russo), of Coconut Creek, Fla., and Steven Axelrod (aka Michael Hutton), of Wellington, Fla., were arrested and charged with conspiracy to commit mail fraud and mail fraud. Mitchell Berman was also charged with criminal contempt of court.
The indictment alleges that the defendants operated a series of fraudulent companies that sold coffee display racks business opportunities. Buyers were told they would receive display racks and packets of coffee, as well as assistance in establishing and maintaining a business selling the coffee.
Beginning in August 2000 and continuing through October 2011, the indictment charges that Berman, Gallo, and Axelrod operated a series of five coffee display rack business opportunity companies: Selective Services Business, Best Gourmet Coffee, Cambridge Coffee, Royal Gourmet Coffee and South Beach Coffee. The business opportunities the defendants sold cost a minimum of approximately $10,000. Each company operated for six months to a year, and after one company closed, the next opened.
The indictment alleges that Berman and Gallo ran the companies, while working as salesman together with Axelrod. All three defendants allegedly made numerous false statements to potential purchasers of the business opportunities to induce them to buy. Among the misrepresentations alleged in the indictment are that purchasers would likely earn substantial profits, that prior purchasers of the business opportunities were earning substantial profits, that purchasers would be given lucrative “commercial accounts,” and that the company would provide assistance in establishing and maintaining the business. According to the indictment, purchasers made little to no money on their investments, were unable to find profitable locations or accounts, and were not provided the support promised by defendants. In making misrepresentations to potential purchasers, Berman was violating a December 2000 federal court order barring him from misrepresenting profits, locations, and other aspects of business opportunities.
According to the indictment, once purchasers began filing complaints with the Better Business Bureau or state authorities, the defendants shut down each of their companies in turn, and opened the next one. In order to evade detection, all the defendants allegedly used aliases and gave out false addresses for the company. The indictment alleges that Berman and Gallo also avoided listing their own names on corporate and promotional documents, and instead paid people who did not work at the companies to be titular presidents.
“The Department of Justice is committed to protecting consumers from business opportunity fraud schemes,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division. “As this indictment demonstrates, we will continue to prosecute individuals who seek to swindle innocent Americans out of their hard-earned money.”
All three defendants were charged with conspiracy to commit mail fraud. In addition, Berman was charged with 8 counts of mail fraud and 9 counts of criminal contempt; Gallo was charged with 8 counts of mail fraud; and Axelrod was charged with 4 counts of mail fraud. If convicted, Berman, Gallo, and Axelrod face a maximum statutory term of 20 years in prison, a possible fine, and mandatory restitution on each conspiracy and mail fraud count. Berman faces a maximum statutory term of up to life in prison, a possible fine, and mandatory restitution on each of the criminal contempt counts.
“Business opportunity schemers use deceit to target and victimize hard-working Americans who are seeking opportunities to better provide for themselves and their families,” said Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida. “We will continue to vigorously pursue these individuals who seek to steal the American Dream from their victims.”
“Cases like this one illustrate the Postal Inspection Service’s dedication to investigating business opportunity fraud that insidiously targets innocent victims,” said Ronald Verocchio, U.S. Postal Inspector in Charge in Miami.
The charges in the indictment form part of the government’s continued nationwide crackdown on business opportunity fraud.This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants. For more information on the task force, please visit www.stopfraud.gov
Acting Assistant Attorney Stuart Delery commended the investigative efforts of the Postal Inspection Service. The case is being prosecuted by Assistant Director Richard Goldberg and Trial Attorney Cindy Cho of the Consumer Protection Branch of the Civil Division of the Department of Justice.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Three Florida Residents Arrested on Charges of FraudRead the Press Release
Indictment Alleges that Defendants Operated Fraudulent Companies for Years Despite December 2000 Court Order
Three individuals charged in connection with operating a series of fraudulent business opportunity companies were arrested Friday following their indictment by a federal grand jury in Miami on June 25, 2013, the Justice Department and the U.S. Postal Inspection Service announced today. Mitchell Berman (aka Brian Griffin), of Boca Raton, Fla., Robert Gallo (aka Bobby Pace, Vincent Pastone, Joe Barone, Bobby Marino, Anthony Russo), of Coconut Creek, Fla., and Steven Axelrod (aka Michael Hutton), of Wellington, Fla., were arrested and charged with conspiracy to commit mail fraud and mail fraud. Mitchell Berman was also charged with criminal contempt of court.
The indictment alleges that the defendants operated a series of fraudulent companies that sold coffee display racks business opportunities. Buyers were told they would receive display racks and packets of coffee, as well as assistance in establishing and maintaining a business selling the coffee.
Beginning in August 2000 and continuing through October 2011, the indictment charges that Berman, Gallo, and Axelrod operated a series of five coffee display rack business opportunity companies: Selective Services Business, Best Gourmet Coffee, Cambridge Coffee, Royal Gourmet Coffee and South Beach Coffee. The business opportunities the defendants sold cost a minimum of approximately $10,000. Each company operated for six months to a year, and after one company closed, the next opened.
The indictment alleges that Berman and Gallo ran the companies, while working as salesman together with Axelrod. All three defendants allegedly made numerous false statements to potential purchasers of the business opportunities to induce them to buy. Among the misrepresentations alleged in the indictment are that purchasers would likely earn substantial profits, that prior purchasers of the business opportunities were earning substantial profits, that purchasers would be given lucrative “commercial accounts,” and that the company would provide assistance in establishing and maintaining the business. According to the indictment, purchasers made little to no money on their investments, were unable to find profitable locations or accounts, and were not provided the support promised by defendants. In making misrepresentations to potential purchasers, Berman was violating a December 2000 federal court order barring him from misrepresenting profits, locations, and other aspects of business opportunities.
According to the indictment, once purchasers began filing complaints with the Better Business Bureau or state authorities, the defendants shut down each of their companies in turn, and opened the next one. In order to evade detection, all the defendants allegedly used aliases and gave out false addresses for the company. The indictment alleges that Berman and Gallo also avoided listing their own names on corporate and promotional documents, and instead paid people who did not work at the companies to be titular presidents.
“Business opportunity schemers use deceit to target and victimize hard-working Americans who are seeking opportunities to better provide for themselves and their families,” said Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida. “We will continue to vigorously pursue these individuals who seek to steal the American Dream from their victims.”
“The Department of Justice is committed to protecting consumers from business opportunity fraud schemes,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division. “As this indictment demonstrates, we will continue to prosecute individuals who seek to swindle innocent Americans out of their hard-earned money.”
All three defendants were charged with conspiracy to commit mail fraud. In addition, Berman was charged with 8 counts of mail fraud and 9 counts of criminal contempt; Gallo was charged with 8 counts of mail fraud; and Axelrod was charged with 4 counts of mail fraud. If convicted, Berman, Gallo, and Axelrod face a maximum statutory term of 20 years in prison, a possible fine, and mandatory restitution on each conspiracy and mail fraud count. Berman faces a maximum statutory term of up to life in prison, a possible fine, and mandatory restitution on each of the criminal contempt counts.
“Cases like this one illustrate the Postal Inspection Service’s dedication to investigating business opportunity fraud that insidiously targets innocent victims,” said Ronald Verocchio, U.S. Postal Inspector in Charge in Miami.
The charges in the indictment form part of the government’s continued nationwide crackdown on business opportunity fraud.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants. For more information on the task force, please visit www.stopfraud.gov.
Acting Assistant Attorney Stuart Delery commended the investigative efforts of the Postal Inspection Service. The case is being prosecuted by Assistant Director Richard Goldberg and Trial Attorney Cindy Cho of the Consumer Protection Branch of the Civil Division of the Department of Justice.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
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.
St. Landry Parish School Board Member Pleads Guilty to Bribery ConspiracyRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that St. Landry Parish School Board member John Miller, 72, of Opelousas, La., pleaded guilty before U.S. District Judge Richard T. Haik to one count of conspiracy to commit bribery.
According to evidence presented at the guilty plea, Miller admitted that he and fellow St. Landry Parish School Board member Quincy Richard Sr., 51, of Opelousas, conspired to receive bribe money from school board superintendent candidate Joseph Cassimere in return for their support. During July, August and September of 2012, Miller admitted that he and Richard had a number of private meetings with Cassimere where they negotiated price and payment from Cassimere in exchange for their favorable individual votes as school board members in support of Cassimere’s candidacy for superintendent. At the same time the screening process for the superintendent position was ongoing and by the week of Sept. 16, 2012, five applicants had been publicly named. The final vote was scheduled for Sept. 26, 2012.
The defendants met with Cassimere on Sept. 24, 2012 at the Quarters Restaurant in Opelousas and received $5,000 each in return for their votes. They made it clear that Cassimere had also secured their services, efforts, influence and due diligence to secure the votes of other members of the school board for Cassimere’s candidacy. Richard added that Cassimere could also recoup his $10,000 bribe by adding that amount to his salary request. Miller instructed Cassimere on how to make and justify a meritorious salary request above the amount listed for the superintendent’s salary as advertised. This conversation of Sept. 24, 2012 had been under video and audio surveillance. After the defendants exited the restaurant, they were confronted by authorities who recovered the $5,000 payments. Miller was indicted on Oct. 24, 2012.United States Attorney Finley stated, “This is a positive first step for the School Board to move forward so they can take care of the educational work that needs to be addressed for the children and citizens of this community.”
Miller faces a maximum penalty of five years in prison, a $250,000 fine, and three years of supervised release for conspiracy to commit bribery. A sentencing date has not been set.
The FBI-Alexandria Resident Agency conducted the investigation. Assistant U.S. Attorney Howard C. Parker is prosecuting the case.