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Tuesday 18 June 2013
Former Orleans Parish Bond Clerk, Lear Enclarde, Pleads GuiltyRead the Press Release
LEAR ENCLARDE, age 68, a resident of New Orleans, pled guilty today to Conspiracy to Commit Honest Services Mail Fraud in a one-count Bill of Information, announced U. S. Attorney Dana Boente.
According to court documents, ENCLARDE, who worked in the Orleans Parish Criminal Clerk’s Office from 1973 through 2010, accepted cash and things of value from an
unlicensed bail bondsman in exchange for her permitting the unlicensed bondsman to use the name of another, licensed bondsman and to forge that licensed bondsman’s signature on official court documents.Upon sentencing, which is scheduled for September 17, 2013, ENCLARDE faces a maximum term of imprisonment of 5 years, a fine of $250,000.00 and 3 years of supervised release following any term of imprisonment.
The case was investigated by the Federal Bureau of Investigation, the New Orleans Police Department, the Orleans Parish District Attorney’s Office, and the United States Attorney’s Office.
The case is being prosecuted by Assistant U. S. Attorney Dan Friel.
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Former New York City Councilman Pedro Gautier Espada Sentenced to Six Months’ ImprisonmentRead the Press Release
Earlier today, Pedro Gautier Espada (“Gautier Espada”) was sentenced before Judge Frederic Block in U.S. District Court in Brooklyn, New York, to six months’ imprisonment, to be followed by six months’ home confinement and one year of supervised release, for theft of federal funds from Bronx-based non-profit healthcare clinics, Soundview Healthcare Network (“Soundview”) and for failing to file a tax return for tax year 2009. As part of that sentence, Judge Block ordered Gautier Espada to serve 100 hours of community service, restitution to the Internal Revenue Service in the amount of $15,628, and additional restitution to the victims of his thefts in an amount to be determined by the court. Gautier Espada served the South Bronx as a New York City Councilman from 1997 to 2001 and as a New York State Assemblyman in 1996.
On June 14, 2013, Judge Block sentenced Gautier Espada’s father, former New York State Senate Majority Leader Pedro Espada, Jr. (“Espada”), to five years’ imprisonment, to be followed by three years of supervised release, for theft of federal funds from Soundview, and lying on his 2005 personal tax return. As part of that sentence, Judge Block ordered Espada to serve 100 hours of community service, restitution to the Internal Revenue Service in the amount of $118,531, restitution to the victims of his thefts in an amount to be determined, and forfeiture of $368,088. The court remanded Espada to the custody of the Bureau of Prisons.
The sentence 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 (FBI), and Toni Weirauch, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS).
On October 12, 2012, Gautier Espada pled guilty to one count of stealing federal funding from Soundview and one count of failing to file a tax return for 2009. Gautier Espada was Soundview’s Director of Environmental Care and headed Soundview’s Compliance Committee.
The government’s case was prosecuted by Assistant United States Attorneys Todd Kaminsky, Carolyn Pokorny and Claire Kedeshian.
The Defendant
PEDRO GAUTIER ESPADA
Age: 39
Fairfield, CTE.D.N.Y. Docket No. CR-10-985 (FB)
Former Corporate Executive Indicted for Executing Fraud and Money Laundering Scheme Involving over $230 Million in PurchasesRead the Press Release
An indictment was unsealed this morning in federal court in the Eastern District of New York charging Carl Fiorentino, the former president of computer and electronics seller TigerDirect, with mail fraud, wire fraud and money laundering in connection with a scheme to defraud TigerDirect and its parent company, Systemax, Inc. (“Systemax”). Systemax is a publicly traded company with headquarters in Port Washington, New York. According to the indictment, the defendant personally took over $7 million in commercial bribes and kickbacks in return for steering over $230 million in business to the Taiwanese and California companies that paid the bribes and kickbacks.
The defendant was arrested by federal agents earlier today in Coral Gables, Florida, and a search warrant was executed at his $8 million residence, purchased with fraud proceeds. Later today, the defendant will appear for arraignment before United States Magistrate Judge Edwin Torres in the Southern District of Florida. The criminal case has been assigned to the Honorable Sandra J. Feuerstein, United States District Judge for the Eastern District of New York, in Central Islip, New York.
The arrest and charges were 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; and Michael DePalma, Acting Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation, Miami, Florida.
“As alleged in the indictment and court papers, Carl Fiorentino abused his position of trust, employing fraud and deceit to line his own pockets at the expense of his employer and its public shareholders. Fiorentino had it all – a lucrative job and a high-flying lifestyle. But as alleged in the indictment and court papers, his loyalties were neither to his employer nor its public shareholders but solely to himself. Fiorentino’s greed spanned the Pacific Ocean to pull companies from California to Taiwan into his bribery and kickback scheme,” stated United States Attorney Lynch. “We and our law enforcement partners will vigorously pursue and prosecute to the fullest extent of the law those who seek to profit by such fraud.” Ms. Lynch expressed her grateful appreciation to the FBI and IRS for their work on the investigation.
“As alleged, Fiorentino exploited his position to engage in blatant self-dealing. He accepted bribes to abuse his purchasing power and direct company business to specific suppliers. The suppliers’ lavish kickbacks helped finance Fiorentino’s multimillion-dollar home. The FBI will continue to police the kind of insider fraud that victimizes companies and their shareholders,” stated FBI Assistant Director-in-Charge Venizelos.
“IRS Criminal Investigation is committed to unraveling elaborate and complex money laundering schemes leaving no financial stones unturned,” stated Michael J. De Palma, Acting Special Agent-in-Charge of IRS-Criminal Investigation, Miami Field Office. “Those who abuse their position of trust to illegally enrich themselves will be held accountable for their actions.”
Beginning in January 2003 and continuing until April 2011, Fiorentino was the president of TigerDirect, a subsidiary of Systemax, Inc., that sold brand-name computers and its own line of Ultra computers in its retail stores and via mail-order catalogs and the Internet. In 2010 Systemax reported $3.5 billion in net sales according to its 2010 SEC 10K filing. Among his duties as company president, Fiorentino was responsible for selecting suppliers to provide computer components, peripherals and other products to TigerDirect. As alleged in the indictment, beginning in 2003, Fiorentino entered into an illegal agreement with the owner of a Taiwanese company to steer TigerDirect business to his company by directing TigerDirect to purchase the Taiwanese company’s computer components in exchange for bribes and kickbacks that totaled $6.5 million dollars over the course of the conspiracy. In addition, between 2003 and 2007, Fiorentino received another $570,000 in bribes and kickbacks from a California-based company that sold computer memory modules and flash memory products. Fiorentino received the bribes and kickbacks through checks and wire transfers payable to third party individuals and entities that he controlled. Fiorentino used the proceeds of the fraud scheme to buy, among other things, an $8 million home in Coral Gables, Florida.
As a result of the scheme, TigerDirect is alleged to have paid over $157,000,000 for the Taiwanese company’s products and $80,000,000 for the California company’s products. Fiorentino concealed the scheme and kickback payments by submitting false conflict of interest forms to Systemax and using a complex web of wire transfers and shell companies.
The charges announced today are merely allegations, and the defendant is presumed innocent unless and until proven guilty. The indictment charges Fiorentino with mail fraud, wire fraud, conspiracy to commit mail and wire fraud and money laundering conspiracy. If convicted, he faces a maximum sentence of 20 years’ imprisonment on each of those charges, forfeiture of the $8 million Coral Gables residence and over $7 million dollars, and a $250,000 fine.
The government’s case is being prosecuted by Assistant United States Attorney Demetri Jones.
The Defendant:
Name: CARL FIORENTINO
Age: 56Former Bank President Charged with 18 Counts of Bank FraudRead the Press Release
United States Attorney James L. Santelle announced today that David J. Langemak, (age: 41), formerly of Plymouth, Wisconsin, and former bank president of Community Bank and Trust, Plymouth Branch, (CB&T) was indicted June 18, 2013, for 18 counts of bank fraud in violation of Title 18, United States Code, Section 1344 (2). If convicted, Landemak faces a maximum of 30 years in prison and a $1,000,000 fine on each count.
The indictment alleges that Langemak, while employed as president of CB&T made unauthorized withdrawals which totaled approximately $250,000 from the accounts of various bank customers for the benefit of a single unrelated bank customer.
The case was investigated by the Federal Deposit Insurance Corporation, Office of the Inspector General, the Federal Bureau of Investigation, and the Small Business Administration, Office of the Inspector General. The case is being prosecuted by Assistant United States Attorney Carol L. Kraft.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Former Atlanta Police Officer Sentenced to Prison for Accepting BribesRead the Press Release
ATLANTA – Elton Augustin, a former Atlanta Police Department officer, was sentenced to two years in prison today for conspiring to accept bribes and lying to FBI agents.
“Police officers are sworn to uphold the law and protect the community they serve, but this defendant protected an illegal business in exchange for cash and then lied to federal investigators,” said United States Attorney Sally Quillian Yates. “His actions betrayed the community and the honest law enforcement officers who serve honorably every day.”
“While today’s sentencing ends one police officer’s career, it is important to note that the vast majority of dedicated law enforcement officers that serve our community understand their oaths to the badge and honor their commitment to their positions of trust,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “The FBI urges anyone with information regarding activities involving police corruption to contact their nearest FBI field office.”
According to United States Attorney Yates, the charges and other information presented in court: From June 2007 through August 2007, while employed as a police officer with the Atlanta Police Department (APD), Elton Augustin worked at an illegal nightclub in Atlanta, Ga. Augustin, along with two other APD officers, received over $10,000 in cash to provide security and prevent police officers from investigating illegal activity at the nightclub, which included gambling, prostitution, drug sales, and permit violations.
Augustin and the other officers were posted outside of the nightclub’s parking lot to intercept on-duty police officers responding to emergency calls. The officers’ presence at the nightclub prevented on-duty officers from discovering the illegal activity and allowed the club to operate undetected for several months.
On September 15, 2007, APD officers shutdown the illegal nightclub and arrested the club’s owners. In 2010, federal agents learned about the officers’ employment at the illegal nightclub. When confronted, Augustin lied to federal agents investigating his employment at the illegal nightclub.The other two APD police officers, Lucius T. Solomon and Eric Jones, were also convicted of bribery charges. Solomon pleaded guilty to bribery and drug trafficking charges on September 2, 2010, and was sentenced to 12 years in prison on December 17, 2010. Jones pleaded guilty to conspiring with Augustin to accept bribes on April 5, 2013, and is awaiting sentencing.
Augustin, 32, of Stockbridge, Ga., was sentenced today by United States District Judge Timothy C. Batten, Sr. to serve two years in prison, to be followed by two years of supervised release, and to perform 100 hours of community service. Augustin was convicted of lying to federal agents after a jury trial on December 7, 2012. On February 14, 2013, Augustin pleaded guilty to conspiring to accept bribes.
This case was investigated by the Federal Bureau of Investigation and the Atlanta Police Department.Assistant United States Attorney Jeffrey A. Brown prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Felon in Possession of Firearm Sentenced to 120 MonthsRead the Press Release
EUGENE, Ore. – On June 18, 2013, Klamath Falls resident Kevin Rowdy Hurst, 45, was sentenced by U.S. District Chief Judge Ann Aiken to 120 months in federal prison for unlawful possession of a firearm and ammunition. Upon his release from prison, Hurst will be on supervised release for three years.
On August 13, 2011, a Klamath County Sheriff’s Officer encountered Hurst biking the streets of Klamath Falls while carrying a loaded AR-15. When confronted, Hurst threw the rifle over a fence and eluded officers. Defendant has multiple felony convictions and a lengthy criminal history.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Klamath County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Nathan J. Lichvarcik.
Federal Court Shuts Down Florida Tax PreparerRead the Press Release
A federal court in Orlando, Fla., permanently barred Carlos A. Cabrera from preparing federal tax returns for others, the Justice Department announced today. The permanent injunction order was signed by Judge Charlene E. Honeywell of the U.S. District Court for the Middle District of Florida. Cabrera, whose business was in Kissimmee, Fla., consented to the permanent injunction order without admitting the allegations against him.
The government complaint in the civil injunction action alleged that Cabrera and his business—Cabrera Financial Group—prepared federal income tax returns for customers that claimed improper losses for non-existent businesses and fabricated education credits in order to unlawfully understate customers’ tax liabilities. According to the complaint, Cabrera prepared over 17,000 tax returns for 2009 and 2010, with an average tax understatement of $4,222 per return for returns the Internal Revenue Service examined. The government suit alleged that the total losses to the Treasury Department from Cabrera’s misconduct could be tens of millions of dollars for those two years alone.This lawsuit is part of the Justice Department’s nationwide crackdown on tax scams, including the preparation of fraudulent federal tax returns. Over the last decade, the department has obtained hundreds of injunctions to stop the promotion of tax fraud schemes and the preparation of fraudulent returns. More information about these cases and the Tax Division can be found on the department’s web site www.justice.gov/tax.
Related Materials:
United States v. Carlos A. Cabrera
Consent Final Judgment of Permanent Injunction (PDF)Export Man Sentenced to Prison for Threatening Federal Agent, Possessing Child PornographyRead the Press Release
PITTSBURGH, Pa. - A resident of Westmoreland County, Pa., has been sentenced in federal court to 38 months imprisonment to be followed by 10 years of supervised release, as well as ordered to pay a $5,000 fine, on his conviction of threatening to murder, intimidate, interfere or retaliate against a Federal Official and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Todd Markley, 49.
According to information presented to the court, on or about May 31, 2012, Markley sent an email threatening to assault and murder a United States Postal Inspector of the United States Postal Inspection Service (USPIS), with intent to impede, intimidate, interfere with and retaliate against the Postal Inspector while she was engaged in her official duties. In addition, on or about April 12, 2012, Markley possessed visual depictions, namely, images in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
Prior to imposing sentence, Judge Cercone stated that "everyday of [the imposed sentence] is warranted because of the heinous language used in that threatening communication".
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigations and the United States Postal Inspection Service for the investigation leading to the successful prosecution of Markley.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Dickson County Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
Defendant Was On State Probation for Prior Offense
Dustin S. Sharp, 32, of Dickson, Tennessee pleaded guilty yesterday in U.S. District Court in Nashville to Receipt of Child Pornography, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee.
According to the plea agreement, Sharp was on probation for a June 2007 conviction in state court for sexual exploitation of a child when he was again discovered to be trading child pornography on the Internet in 2009. Some of the 765 images and 14 videos discovered during the investigation involved the sexual exploitation of very young children and violence.
Receipt of child pornography carries a minimum mandatory sentence of fifteen years in prison when it is a repeat offense. Sharp is scheduled for sentencing before U.S. District Court Chief Judge William Joseph Haynes, Jr. on September 16, 2013, at 3:00 p.m.
This matter was investigated by the Dickson County Sheriff’s Office and the United States Attorney’s Office for the Middle District of Tennessee. The United States was represented by Assistant U.S. Attorney S. Carran Daughtrey.David Wayne Lawrence Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on June 17, 2013, before Chief U.S. District Judge Dana L. Christensen, DAVID WAYNE LAWRENCE, a 47-year-old resident of Great Falls, was sentenced to a term of:
Prison: 65 months, consecutive to another sentence
Special Assessment: $100
Supervised Release: 3 years
LAWRENCE was sentenced in connection with his guilty plea to to possession of methamphetamine with intent to distribute.
In an Offer of Proof filed by Assistant U.S. Attorney Joseph E. Thaggard, the government stated it would have proved at trial the following:
LAWRENCE was involved with several other individuals in a conspiracy that involved the distribution of methamphetamine from Spokane, Washington to Great Falls. One of the individuals was based in Great Falls and periodically traveled with certain associates to Spokane, picked up methamphetamine, then took the drug back to Great Falls. He then distributed the drugs through a network of drug dealers in Great Falls.
LAWRENCE was one of the subordinate drug dealers. LAWRENCE lived at a residence in Great Falls with two other individuals and all three distributed methamphetamine from the residence.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that LAWRENCE will likely serve all of the time imposed by the court. In the federal system, LAWRENCE does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Drug Enforcement Administration and the Great Falls Police Department.
Convicted felon receives three year sentence for firearm possessionRead 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 felon in possession of a firearm.
Ashley Helene Hilton, 26, from Anchorage, Alaska, was sentenced on June 14, 2013, by U.S. District Court Judge Sharon L. Gleason to 36 months in prison.
According to information presented to the court by Special Assistant U.S. Attorney Erin White Bradley, who prosecuted the case, Hilton possessed a loaded Witness .45 caliber semi-automatic pistol on September 5, 2012. A latent print on the magazine inside of the firearm matched that of the defendant. Hilton was not legally permitted to possess the firearm, as she has a felony conviction for second degree robbery from 2005. In this present case, Hilton was with her co-defendant, Nancie Caridad Modeste, who was in the possession of 85 grams of crack cocaine and was arrested on drug charges. Modeste has pled guilty to possession of a controlled substance with intent to distribute and felon in possession of firearms, and her sentencing hearing is set for July 1, 2013.
Prior to imposing sentence, Judge Gleason noted the serious nature of the offense, along with a need to deter criminal conduct, protect the public and promote respect for the law.
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.Connecticut Man Admits Running Investment Fraud SchemeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that JONATHAN GRACIA, 24, formerly of Middletown, waived his right to indictment and pleaded guilty today before United States Magistrate Judge Thomas P. Smith in Hartford to one count of wire fraud stemming from an investment fraud scheme.
According to court documents and statements made in court, GRACIA falsely told friends and acquaintances that he was developing a website for which he had potential buyers, and that he had developed an “app” for the iPhone, and then solicited investments and loans from his victims in connection with both of these purported ventures. GRACIA regularly told the victims that they would receive outsized returns on their investments. As part of the scheme, GRACIA created bogus documents to deceive his victims, including fake checks, bogus bank account statements and a letter that he created on what appeared to be the letterhead of a prominent Connecticut hedge fund management company. Through this scheme, GRACIA defrauded his victims of at least $200,000.
GRACIA is scheduled to be sentenced by United States District Judge Vanessa L. Bryant on September 10, 2013, at which time he faces a maximum term of imprisonment of 20 years.
GRACIA has been detained since his arrest on March 18, 2013.
This matter is being investigated by the Federal Bureau of Investigation, with the assistance of the Branford and Stamford Police Departments. The case is being prosecuted by Assistant United States Attorney Paul A. Murphy.
In December 2010, the U.S. Attorney’s Office and several law enforcement and regulatory partners announced the formation of the Connecticut Securities, Commodities and Investor Fraud Task Force, which is investigating matters relating to insider trading, market manipulation, Ponzi schemes, investor fraud, financial statement fraud, violations of the Foreign Corrupt Practices Act, and embezzlement. The Task Force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service – Criminal Investigation; U.S. Secret Service; U.S. Postal Inspection Service; U.S. Department of Justice’s Criminal Division, Fraud Section and Antitrust Division; U.S. Securities and Exchange Commission (SEC); U.S. Commodity Futures Trading Commission (CFTC); Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); Office of the Chief State’s Attorney; State of Connecticut Department of Banking; Greenwich Police Department and Stamford Police Department.
Citizens are encouraged to report any financial fraud schemes by calling, toll free, 855-236-9740, or by sending an email to [email protected].
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.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Colorado Man Indicted for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Denver, Colorado man has been indicted by a federal grand jury for Failure to Pay Legal Child Support.
Joe S. Romero, age 42, was indicted by a federal grand jury on January 8, 2013 for failing to pay over $33,601.00 in past due child support. He appeared before U.S. Magistrate Judge John E. Simko on June 17, 2013 and pled not guilty to the indictment.
The maximum penalty upon conviction is two years imprisonment; a $250,000.00 fine; one year supervised release; one additional year upon revocation; a $100.00 assessment fee to the Federal Crime Victims Fund; and child support restitution amount owing at the time of sentencing.
The charge is merely an accusation and Romero is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Thomas J. Wright is prosecuting the case.
Romero was remanded to the custody of the U.S. Marshal. A trial date has not been set.
ChubbuckWoman Sentenced for Theft of Government PropertyRead the Press Release
POCATELLO – Leslie A. Briggs, 36, of Pocatello, Idaho, was sentenced today in United States District Court to 21 months in prison followed by three years of supervised release for theft of government property, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Briggs to pay restitution of $103,611.76. She pleaded guilty to the charge on March 28, 2013.
According to the plea agreement, Briggs was employed as assistant to the manager of the Aid for Friends Representative Payee Program, in which the Social Security Administration sends payments for beneficiaries to Aid for Friends. Aid for Friends then administers the funds and pays for the beneficiary’s personal expenses. According to the plea agreement, Briggs had signing authority on the Aid for Friends Social Security Administration trust account at Wells Fargo Bank, where all beneficiaries’ Social Security funds are deposited. Briggs admitted that from November 2008 to December 2010, she wrote checks on the trust account, without authorization, for personal expenses, including credit card bills, insurance and a home loan. Judge Winmill also stated during the sentencing that Briggs has two previous convictions for embezzlement.
The case was investigated by the Social Security Administration, Office of Inspector General-Office of Investigations and the Pocatello Police Department.
Business Owner and His Wife Sentenced for Health Care FraudRead the Press Release
SAN JUAN, P.R. – On June 17, 2013 defendant Gilberto Gómez was sentenced to a term of imprisonment of 70 months and ordered to pay restitution in the amount of $1,956,750.54 by US District Court Judge Gustavo A. Gelpí, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Today, his wife Yolanda García was sentenced to a term of imprisonment of 12 months and a day, followed by 2 years of Supervised Release Term and a Special Monetary Assessment in the amount of $100.00.
A forfeiture order was also issued for the seizure of all the properties and monies mentioned in the forfeiture allegation of the Indictment, which include a luxurious apartment at Gallery Plaza Condominium in Condado, multiple bank accounts, investment accounts, jewelry and other personal property that constitutes or was derived, directly or indirectly from the gross proceeds traceable to the commission of the offense.
On January 12, 2012, a Federal grand jury returned an indictment against multiple individuals for conspiracy to commit health care fraud. Amongst them, Gilberto Gómez, president of Monte Mar Health Corporation (Monte Mar), PROMEDS Medical Inc. (PROMEDS) and Quality Care Medical Supply (Quality) and Yolanda García-Rodríguez, aka “Yolanda Gómez,” wife of Gómez and president of PROMEDS, secretary/treasurer of Monte Mar and an authorized official of Quality.
The indictment alleges that from on or about November, 2008, until on or about May, 2010, Monte Mar submitted at least 1,518 false and fraudulent claims to Medicare totaling approximately $2,993,127.35 for Durable Medical Equipment (DME) that was not medically necessary, causing Medicare to disburse approximately $1,440,597.65. The indictment further alleges that on or about March 2010, after Monte Mar had been placed in a pre-payment status by Medicare, defendants Gilberto Gómez and Yolanda García-Rodríguez purchased PROMEDS and submitted false claims to Medicare seeking reimbursement for DME, including power wheelchairs, power pressure reducing air mattresses and knee orthosis. PROMEDS submitted at least 359 fraudulent claims to Medicare totaling approximately $786,368.34, causing Medicare to disburse approximately $335,493.12.
The indictment further alleges that in October 2010, a third company, Quality, was purchased by Gómez and García-Rodríguez after PROMEDS had been placed in a pre-payment status by Medicare. From on or about October 2010, until May, 2011, Quality submitted at least 115 false claims to Medicare totaling approximately $298,321.26, causing Medicare to disburse approximately $180,659.77. The indictment alleges a total amount of $4,077,816.95 fraudulently billed by using Monte Mar, PROMEDS and Quality, where Medicare disbursed a total of approximately $1,956,750.54.
The investigation was led by the Department of Health and Human Services, Office of the Inspector General (HHS-OIG), with the collaboration of the United States Secret Service (USSS) and the Federal Bureau of Investigation (FBI).“As part of the nation’s health care system, Medicare serves vulnerable populations,” said United States Attorney, Rosa Emilia Rodríguez-Vélez. “The sentences imposed by the Court today show that we will not tolerate criminals who engage in fraudulent schemes which deplete the Medicare program of funds which are destined for our elderly population, in order to enrich themselves.”
“HHS/OIG works diligently to investigate allegations of Medicare fraud. Today's sentencings involving Durable Medical Equipment (DME) fraud demonstrate our resolve to bring these subjects to justice. Furthermore, our efforts, along with the US Attorney's Office and our Law Enforcement partners, have made a dramatic reduction on the total dollars billed and paid for DME in Puerto Rico.”
“The U.S. Secret Service is committed to investigate any financial fraud crimes to include identity theft along with our partner agencies to safeguard our financial system,” said Pedro Gómez, Special Agent in Charge. We will continue to investigate these types of crimes to the fullest extent of the law and bring to justice these criminals that engage in identity theft to facilitate other criminal activities.”
The case was prosecuted by Assistant U.S. Attorney Héctor Ramírez-Carbó and Special Assistant U.S. Attorney Wallace A. Bustelo.Buffalo Man Sentenced for Food Stamp FraudRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Karem Almadrahi, 25, of Buffalo, N.Y., who was convicted of food stamp fraud, was sentenced by U.S. District Judge Richard J. Arcara to eight months of home confinement and three years probation. The defendant was also ordered to pay restitution in the amount of $67, 301 to the United States Department of Agriculture.
Assistant U.S. Attorney Robert C. Moscati, who handled the case, stated that Almadrahi participated in the operation of a deli known as Zip's Food and Beverage at 896 Niagara Street. The defendant and others exchanged customers food stamp benefits for cash in violation of the known rules governing the food stamp program. In less than a two year period, Almadrahi acquired approximately $67,301 through these fraudulent transactions.
The sentencing is the result of an investigation on the part of Special Agents of the United States Department of Agriculture, Office of Inspector General; Special Agents of the Federal Bureau of Investigation under the direction of Acting Special Agent in Charge Richard M. Frankel; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero; and the New York State Police, Special Investigations Unit, under the direction of Lieutenant Joseph Scioli.
Brothers Charged in Online Ticket Sales SchemeRead the Press Release
PITTSBURGH, Pa. - Brothers Daniel J. Isabella, Jr. and David J. Isabella were indicted today by a federal grand jury on conspiracy and wire fraud charges, United States Attorney David J. Hickton announced today.
The indictment named Daniel J. Isabella, Jr., 29, and David J. Isabella, 22, both of Pittsburgh, Pa.
According to the indictment, from January through September of 2012, Daniel J. Isabella, Jr. and David J. Isabella advertised online the sale of tickets to entertainment events. Although they did not have tickets to these events, the brothers would instruct potential purchasers to send money for the advertised tickets. Daniel and David Isabella defrauded over 250 potential ticket purchasers of over $70,000.
The law provides for a maximum total sentence of not more than 100 years in prison, a fine of $1,250,000, or both for Daniel J. Isabella, Jr. The law provides for a maximum total sentence of not more than 80 years in prison, a fine of $1,000,000, or both for David J. Isabella. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Daniel J. Isabella, Jr. and David J. Isabella.
Brooklyn Licensed Home Health Care Services Agency Pays One Million Dollars to Settle Civil Fraud Claims That It Provided Unqualified Home Health Aides to Medicaid RecipientsRead the Press Release
The United States and New York State have entered into settlement agreements with Parkshore Home Health Care, LLC, d/b/a Renaissance Home Health Care, Inc. (“Renaissance”), a Brooklyn-based licensed home health care services agency. These settlements resolve allegations that Renaissance provided unqualified home health aides to home health agencies, who in turn sent these unqualified aides into the homes of Medicaid recipients throughout New York City and then billed the Medicaid program for their services. Under the terms of the agreements, Renaissance will pay a total of $1,000,000. The settlement was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and New York State Attorney General Eric T. Schneiderman.
Under the New York State Medicaid program, home health aides – who primarily care for elderly patients, administer medication and provide services such as catheter care, colostomy care and wound care – are required to successfully complete a training program licensed by either the New York State Department of Health or the New York State Education Department. Today’s settlement resolves claims that between 2005 and 2007, Renaissance used home health aides who failed to receive the required training, resulting in Medicaid being billed for hundreds of thousands of dollars of services that these aides were not qualified to provide.
“When companies that provide home health aides fail to take the necessary steps to ensure the proper training for their aides, patients are the ones who can suffer,” said United States Attorney Lynch. “We will continue working to stop health care fraud from being committed on the Medicare and Medicaid programs, especially when the fraud can impact the care received by vulnerable patients.”
“This home health care agency hired workers with false training certificates who then went out into the community and into the homes of the vulnerable and elderly,” Attorney General Schneiderman said. “This was preventable and our investigations show that is a recurring problem in home health care. This office will continue to recover Medicaid funds from providers who do not protect the Medicaid program.”
The settlements resolve allegations that were contained in lawsuits filed under the whistleblower provisions of the Federal and New York State False Claims Acts. These provisions allow private citizens to file suit on behalf of the United States and State of New York, respectively, for fraud, and in certain circumstances to share in any recovery. 1
The United States’ case was handled by Assistant U.S. Attorneys Erin E. Argo and Kelly Horan Florio, who were assisted by Affirmative Civil Enforcement auditor Emily Rosenthal. New York State’s case was handled by Special Assistant Attorney General Jill Brenner.
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1 In settling this case, Renaissance has not admitted liability.
British National Admits Role in Cocaine Smuggling ConspiracyRead the Press Release
NEWARK, N.J– An extradited British national today admitted his role in an organization that smuggled cocaine aboard commercial airlines from the West Indies to England via the United States, U.S. Attorney Paul J. Fishman announced.
Prine George Alfonso Jones, a/k/a “Prince,” 47, of Birmingham, Great Britain, pleaded guilty to an information charging him with conspiracy to import and to export cocaine. Jones was arrested on Feb. 4, 2009, in Great Britain, for allegedly transporting narcotics directly from St. Lucia to Great Britain. Jones was extradited from Great Britain and had his initial appearance on narcotics conspiracy charges in December 2012.
According to documents filed in this and related cases and statements in court:
Jones was involved in an organization whose members included Nigel Roberts, a/k/a “Skang,” another British national who previously pleaded guilty to related charges. The organization acquired cocaine in Jamaica and St. Lucia, concealed it in luggage, and provided that cocaine-filled luggage to drug couriers, who transported it by commercial airlines to Great Britain after making intermediate stops in the United States. Jones admitted to his role as a British operative of the organization who would provide transport to drug couriers and the narcotics that they smuggled.
Today’s guilty plea stems from a multi-jurisdictional and international investigation into narcotics trafficking that has resulted in multiple narcotics seizures and the charging of 14 individuals to date. Jones is the 14th member of this international cocaine trafficking ring to have pleaded guilty in the District of New Jersey.
The conspiracy charge to which Jones pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and $1 million fine. Sentencing is scheduled for July 8, 2013.
U.S. Attorney Fishman credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Andrew M. McLees; and the Drug Enforcement Administration’s New Jersey Division under the direction of Acting Special Agent in Charge Robert G. Koval, in coordination with police officers of the West Midlands Police Complex Casework Unit in Birmingham, England, for the investigation leading to today’s plea. U.S. Attorney Fishman also thanked the Department of Justice’s Office of International Affairs for its assistance in obtaining Jones’s extradition.
The case is being prosecuted by Assistant U.S. Attorney Eric W. Moran of the U.S. Attorney’s Office in Trenton.13-255
Defense counsel: Olubukola O. Adetula, Esq., Irvington, N.J.
Jones, Prine Supersedimg Information
Beaumont Orthodontist Guilty of Health Care Fraud ViolationsRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 70-year-old Beaumont orthodontist has pleaded guilty to health care fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Terrence Ewing Syler pleaded guilty to an Information charging him with health care fraud today before U.S. Magistrate Judge Keith Giblin.
According to the information presented in court, Syler owned and operated Syler Orthodontics in Beaumont. From January 2007 to October 2012, Syler carried out a scheme to defraud Medicaid by submitting claims for palatal expanders which were never provided to his patients. As a result of the scheme, Syler received $829,333 to which he was not entitled. As part of his plea agreement, Syler has agreed to forfeiture of several bank accounts totaling just over $829,000.
Syler faces up to10 years in federal prison at sentencing. A sentencing date has not been set.The Texas Medical Assistance Program (Medicaid) is a health care benefit program, jointly funded by the State of Texas and the federal government, and helps pay for reasonable and necessary medical procedures and services provided to individuals who are deemed eligible under state low-income programs.
This case is being investigated by Federal Bureau of Investigation, the U.S. Department of Health and Human Services – Office of the Inspector General (HHS-OIG) and the Texas Office of the Attorney General – Medicaid Fraud Control Unit (OAG-MFCU). Assistant U.S. Attorney Christopher T. Tortorice is prosecuting this case.
Any individuals with knowledge of these or other health care fraud violations are encouraged to contact the Department of Health and Human Services’ fraud hotline at 1-800-HHS-TIPS (447-8477).
Bank Vice-President and Senior Business Director Sentenced in Wire Fraud SchemeRead the Press Release
Tampa, Florida - U.S. District Judge Steven D. Merryday today sentenced Susan Emily Jones (50, Lutz) to 24 months in federal prison for committing wire fraud. As part of her sentence, the court also entered a money judgment in the amount of $824,301.57, the proceeds of the wire fraud scheme. Jones has already forfeited her interest in a BMW, her personal residence, and the funds in three bank accounts totaling $7,166.38. Jones pleaded guilty on January 16, 2013.
According to court documents, Jones served as Vice-President and Senior Business Director of Citicorp Services, Inc. and managed its employees and operations. From November 13, 2003, through January 5, 2010, in Tampa, Jones falsely and fraudulently led Citicorp Services, Inc. employees to believe that she was authorized to make certain expenditures of company funds and misappropriated these funds for her personal enrichment. Specifically, Jones used these funds to pay for Tampa Bay Buccaneers football season tickets, personal credit card expenses, charitable contributions, prepaid debit cards, auto-related expenses, travel, and other goods and services. As part of the scheme to misappropriate funds, she caused the unauthorized transfer of funds from the Citibank, N.A. reserve account to the Citicorp Services, Inc. account. In sum, Jones misappropriated $824,301.57 using interstate wire transmissions, by bypassing Citicorp Services, Inc.’s and Citibank, N.A.’s internal controls for business and travel and entertainment expenses.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Rachelle DesVaux Bedke.
Bank Teller Admits Stealing Money from Cd AccountsRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that MICHELLE LAUDATO, 35, of Farmington, waived her right to indictment and pleaded guilty today before United States Magistrate Judge Donna F. Martinez in Hartford to one count of bank fraud.
According to court documents and statements made in court, between July 2009 and June 2010, LAUDATO used her position as a teller supervisor at a branch of Webster Bank in Bristol to steal more than $178,000 from the CD accounts of at least 18 bank customers. Thirteen of the 18 bank customers were between the ages of 79 and 99.
As part of the scheme, LAUDATO sometimes withdrew funds from certain CD accounts to replace funds in the CD accounts she had previously accessed. She also withdrew funds in increments of $10,000 or less to avoid currency transaction reporting requirements.
LAUDATO is scheduled to be sentenced by Chief United States District Judge Alvin W. Thompson on September 6, 2013, at which time she faces a maximum term of imprisonment of 30 years and a fine of up to $1 million.
This matter has been investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Felice M. Duffy.
PUBLIC AFFAIRS CONTACT:
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Tom Carson
(203) 821-3722
[email protected]Ambulance Company Owner and Operator Heads to Federal PrisonRead the Press Release
HOUSTON - Julian Kimble, 48, has been handed a federal prison sentence following his convictions for conspiracy to commit health care fraud, conspiracy to commit money laundering and tax evasion, United States Attorney Kenneth Magidson announced today. Kimble pleaded guilty to these federal crimes on Nov. 29, 2011.
At the hearing today, U.S. District Judge David Hittner sentenced Kimble to federal prison for 72 months for conspiracy to commit health care fraud, 72 months for conspiracy to commit money laundering and 60 Months for tax evasion. The sentences on each count are to be served concurrently followed by three years of supervised release. He was further ordered to pay $3,676,587 in restitution to the Medicare Program.
Kimble had admitted that from March 2008 through December 2010, he owned and operated four ambulance companies - Monarch Ambulance, Tamimi International Inc. dba Universal Care, Houston EMS dba XTRA Care Inc., and HKO Group Inc. dba Delta Care EMS. In his operation of these companies, Kimble routinely billed Medicare for basic life support (BLS) ambulance transports that were not provided, not needed or not ordered by the treating physicians.
None of the four ambulance companies operated by Kimble owned licensed ambulance vehicles necessary to provide the BLS transports for which he billed Medicare. Kimble used third-parties and straw owners to register the ambulance companies with the Texas Department of Health. He and others often transported multiple beneficiaries at the same time in vans or sedans, fraudulently billing Medicare for allegedly providing individual transports in ambulances under the attention of qualified emergency medical personnel. In addition, Kimble received kickbacks from the owners of different community mental health centers (CMHCs) in the Houston area in exchange for supplying patients to their facilities. Under Kimble’s direction, Medicare beneficiaries received payments in exchange for agreeing to be transported to different CMHC facilities around the Houston area. From 2008 through December 2010, Kimble’s companies fraudulently billed Medicare for approximately $8.7 million and received payment for approximately $3.6 million.
To conceal the proceeds of the health care fraud, Kimble withdrew funds from the business accounts of the different ambulance companies, keeping part of those funds and using the remainder to pay kickbacks to patients. From the funds fraudulently obtained from Medicare, Kimble issued checks for thousands of dollars to other conspirators, who, after cashing the checks, would return part of the cash to Kimble, use another part of the money to recruit patients and keep the remainder of the money for themselves. From August to December 2010, conspirators received checks from Kimble totaling more than $1 million. No part of this money was reported as taxable income.
Kimble was also charged and convicted of tax evasion as a result of a prior investigation into his ownership of Pearl Ambulance Service from 1998-2007. Kimble admitted he overstated the business expenses for Pearl Ambulance in his tax returns for 2003-2007. Additionally, he claimed business expenses from Pearl Records, his music business, in his tax returns for Pearl Ambulance which resulted in a zero dollar tax liability for Pearl Ambulance. Kimble failed to file corporate tax returns for Pearl during this time until his assets were about to be seized. When he did file, the delinquent returns were discovered to be materially false.
Kimble will remain in federal custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by the United States Secret Service, Internal Revenue Service-Criminal Investigations and the Department of Health and Human Services-Office of Inspector General. Special Assistant United States Attorney Justin S. Blan prosecuted the case.
Aloysious Wells Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on June 17, 2013, before Chief U.S. District Judge Dana L. Christensen, ALOYSIOUS WELLS, a 25-year-old resident of Heart Butte and an enrolled member of the Blackfeet Tribe, was sentenced to a term of:
Prison: 20 months
Special Assessment: $100
Supervised Release: 10 years
WELLS was sentenced in connection with his guilty plea to abusive sexual contact.
In an Offer of Proof filed by Assistant U.S. Attorney Laura B. Weiss, the government stated it would have proved at trial the following:
In 2009, WELLS went to a house in Heart Butte, which is on the Blackfeet Indian Reservation. He entered the living room and the victim, who was under the age of 12 at the time, was laying on the sofa. He sat down beside her and began to sexually abused her.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that WELLS will likely serve all of the time imposed by the court. In the federal system, WELLS does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Abel “Alex” Alvarez Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on June 18, 2013, before Chief U.S. District Judge Dana L. Christensen, ABEL "ALEX" ALVAREZ, a 51-year-old resident of Box Elder, was sentenced to a term of:
Prison: 40 months
Special Assessment: $100
Supervised Release: 10 years
ALVAREZ was sentenced in connection with his guilty plea to aggravated sexual abuse.
In an Offer of Proof filed by Assistant U.S. Attorney Danna R. Jackson, the government stated it would have proved at trial the following:
In late spring of 2011, ALVAREZ had unlawful sexual contact with a 9-year-old child. The incident happened on the Rocky Boy's Indian Reservation and the child is an enrolled tribal member.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that ALVAREZ will likely serve all of the time imposed by the court. In the federal system, ALVAREZ does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Monday 17 June 2013
United States Attorney’s Office Announces Support for Attorney General’s Mobile Street Crime UnitRead the Press Release
Peter Smith, United States Attorney for the Middle District of Pennsylvania, announced today that his office enthusiastically supports Attorney General Kathleen Kane’s proposal to establish a mobile street crime unit targeting gangs in specific areas of Pennsylvania, beginning with Hazelton.
Smith stated that the Attorney General’s plan is a timely act of bold leadership on behalf of often overwhelmed and underfunded local law enforcement agencies in Hazelton and the surrounding area. “It is especially appropriate that the Attorney General wants to focus on a community in Luzerne County where the combination of gangs, drugs, adverse economic conditions, and political corruption has undermined public confidence in government and faith in the future.”
Smith noted that the Attorney General’s announcement mentioned that the mobile unit would partner with agents of the Drug Enforcement Administration and Federal Bureau of Investigation. He added that, in addition, the United States Marshals Service; the Bureau of Alcohol, Tobacco, Firearms and Explosives; Internal Revenue Service-Criminal Investigation; and United States Department of Homeland Security are also extremely active in northeastern Pennsylvania, in coordination with his office and local and state task forces, police departments, the Pennsylvania State Police, and district attorney’s offices.
“Federal law enforcement will continue to work closely and creatively with the Attorney General and her staff on this initiative and others to fight gangs and drugs in northeastern Pennsylvania with all of the tools and resources at our disposal.”
United States Attorney to Leave OfficeRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr. announced today that a corporation and its two owners have been charged in connection with a wide ranging and ongoing federal and state investigation into corruption and fraud surrounding federal environmental laws.
RAM ENVIRONMENTAL SERVICES, INC., an entity incorporated in the State of Louisiana and doing business in Morgan City, Louisiana; RAYMOND MARCEL, JR., age 60, of Berwick, Louisiana; and CYRIL D. ROBICHEAUX, age 53, of Morgan City, Louisiana, have each been charged in Bills of Information with conspiracy to defraud the U.S. Environmental Protection Agency and to violate the Safe Drinking Water Act, in violation of Title 18, United States Code, Section 371. MARCEL and ROBICHEAUX are the owners and operators of RAM, a wastewater brokerage firm.
If convicted, MARCEL and ROBICHEAUX would face up to five years imprisonment, a $250,000 fine, a term of supervised release following imprisonment up to three years, and restitution to any victims. If convicted, RAM would face a fine up to $250,000, a term of probation up to five years, and an order of restitution to any victims.
Today’s charges allege that, in 2011 and 2012, the defendants conspired with themselves and others to illegally discharge industrial wastewater at locations in Belle River, Louisiana, and Baton Rouge, Louisiana, and to otherwise obstruct the enforcement of the federal environmental laws through kickbacks, the creation and use of false documents, and other fraudulent means.
With regard to the Baton Rouge conduct, the charges allege that, in September 2012, the defendants and others caused the illegal disposal of industrial wastewater at a site in Baton Rouge, Louisiana, and concealed such activity through the creation and use of false documents. According to the charges, the defendants undertook such fraudulent activity with the owner of the Baton Rouge site and further schemed with the site owner to lie to investigators regarding the disposals.
With regard to the Belle River conduct, the charges allege that, during 2011 and 2012, the defendants paid over $22,000 in kickbacks to Michael J. Vaughn (“Vaughn”), the Operations Manager of FAS Environmental Services, a transportation and disposal company, in exchange for illegally using FAS’s injection well in Belle River to dispose of over 380,000 gallons of industrial wastewater. As part of the scheme, the defendants and their fellow conspirators allegedly created and used over 100 false documents, including manifests and work orders, in addition to submitting false reports to regulators in Baton Rouge. Such allegedly false and fraudulent documents were designed to conceal the scheme from federal and state government officials, as well as the defendant corporation’s unsuspecting clients.
Today’s charges were preceded by Vaughn’s conviction on May 29, 2013. Vaughn, the former FAS Operations Manager, pled guilty before U.S. District Judge James Brady to a previously sealed Bill of Information charging him with conspiracy to defraud the U.S. Environmental Protection Agency and to violate the Safe Drinking Water Act, in violation of Title 18, United States Code, Section 371, making false statements within the jurisdiction of the federal government, in violation of Title 18, United States Code, Section 1001, and forfeiture. Vaughn is pending sentencing.
FAS ownership was unaware of the scheme involving the FAS injection well, which resulted in the misuse of FAS resources. FAS has cooperated fully throughout the investigation.
This ongoing investigation is being conducted by this office, the Criminal Investigation Division of the U.S. Environmental Protection Agency, and the Criminal Investigation Division of the Louisiana Department of Environmental Quality. The case is being prosecuted by Assistant United States Attorney Corey R. Amundson who serves as the Senior Deputy Chief of the Criminal Division.
U.S. Attorney’s Office Hosts Greater Boston PFLAG for LGBT Pride MonthRead the Press Release
In recognition of LGBT Pride Month, the U.S. Attorney’s Office hosted representatives from the Greater Boston PFLAG (Parents, Families, and Friends of Lesbians and Gays). Greater Boston PFLAG aims to change attitudes and create an environment of understanding so that gay family members and friends can live in a world that is safe and inclusive. The organization works to create environments of understanding so that all people can live with dignity and respect through: support, to cope with an adverse society; education, to enlighten the public; and advocacy, to end discrimination and to secure equal civil rights. Greater Boston PFLAG also provides opportunities for dialogue about sexual orientation and gender identity, and acts to create a society that is healthy and respectful of human diversity.
Pam Garramone, Executive Director, and Deb Peeples, Board President, along with Amir Dixon and Zachary Kerr, spoke about Greater Boston PFLAG and shared their personal stories involving a wide variety of LGBT issues. Pam and Deb recently returned from the White House to receive recognition for the important work that they do on behalf of the LGBT community. Amir, 23, is an award winning writer, producer, filmmaker and activist who in 2011 became the youngest board member of the Hispanic Black Gay Coalition of Boston (HBGC). Zachary, 19, is a recent high school graduate and member of the Massachusetts Commission on LGBT Youth. He has been working to address the needs of transgender students.
In March 2013, the Department of Justice established a formal LGBT Special Emphasis Program. The formal designation of a LGBT Special Emphasis Program helps to institutionalize program activities that are currently in place to support the recruitment, retention and development of LGBT employees. The designation also complements existing Special Emphasis Programs which are designed to further develop a diverse and talented DOJ workforce.
Topeka Man Pleads Guilty in Armed RobberyRead the Press Release
TOPEKA, KAN. – A Topeka man has pleaded guilty to taking part in an armed robbery at a Little Caesars Pizza restaurant, U.S. Attorney Barry Grissom said today.
David Pierre Wigfall, 28, Topeka, Kan., pleaded guilty to aiding and abetting a robbery in which the robber brandished a firearm. In his plea, Wigfall admitted that on March 1, 2013, he drove a white Cadillac occupied by co-defendants Alonzo Nathan Lax, Johnnie Lee McCall and Jordan Lucas. At McCall’s direction, Lax agreed to rob Little Caesar’s Pizza at 2620 SW 6th Street, Suite B, in Topeka. Wearing a blue hooded sweatshirt, gloves and a black ski mask, Lax entered the restaurant, brandished a firearm and demanded money. A clerk saw him leave the restaurant and get into the passenger side of the Cadillac.
A few minutes later, officers of the Topeka Police Department found the Cadillac parked at a residence in the 1000 block of SW Plass and determined that it was registered to Wigfall. They saw articles that appeared to be from the robbery in the car. They kept watch on the car until Wigfall got in and drove away. When they stopped Wigfall they recovered a mask and coins from the robbery that Wigfall had discarded before they pulled him over.
Sentencing is set for Sept. 23. He faces a penalty of not less than seven years and not more than life and a fine up to $250,000.Co-defendants include:
Johnnie Lee McCall, 28, Topeka, Kan., who pleaded guilty to one count of aiding and abetting commercial robbery and one count of aiding and abetting brandishing a firearm. He is set for sentencing Aug. 19.
Jordan Christopher Lucas, 26, Topeka, who pleaded guilty to one count of commercial robbery and one count of brandishing a firearm in connection with a Feb. 27, 2013 robbery at Baskin Robbins, 4400 S.W. 21st in Topeka. He is set for sentencing Sept. 3.
Alonzo Lax, 26, Topeka, who pleaded guilty to robbery and brandishing a firearm. He is set for sentencing Aug. 13.Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
St. Francis Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that Koty Arcoren, age 21, of St. Francis, South Dakota appeared before U.S. District Judge Roberto A. Lange on June 13, 2013 and pled guilty to Failure to Register as a Sex Offender.
The maximum penalty upon conviction is 10 years in custody, a $250,000 fine, or both; life of supervised release; and $100 to the Federal Crime Victims Fund.
On February 28, 2011, Arcoren was convicted of Abusive Sexual Contact. The Court sentenced Arcoren to 31 months in custody, seven years of supervised release, and was ordered to register as a sex offender.
Arcoren began his term of supervised release and absconded from his release on April 12, 2013. During the time he absconded from supervised release until he was apprehended in Todd County on April 29, 2013, he failed to complete his bi-annual sex offender registration requirement.
The investigation was conducted by the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Tim Maher.
A presentence investigation was ordered and a sentencing date was set for September 9, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Spencer Iowa Man Sentenced to Federal Prison for Methamphetamine ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced June 13, 2013, to ten years in federal prison.
Ricardo Ballesteros, 29, from Spencer, Iowa, received the prison term after a September 13, 2012, guilty plea to conspiracy to distribute methamphetamine.
At the guilty plea, Ballesteros admitted his involvement in a conspiracy that distributed more than 10 pounds of mixed methamphetamine from 2010 through August 2011. On two occasions in June 2011, Ballesteros aided and abetted the distribution of more than 13 grams of actual (pure) methamphetamine to an individual cooperating with law enforcement.
Ballesteros was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Ballesteros was sentenced to 120 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Ballesteros is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Iowa Division of Narcotics Enforcement, Iowa Division of Criminal Investigations, Spencer, Iowa, Police Department, and Clay County Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 12-4048.
Seven Southland Residents Face Federal Bank Fraud Charges in Identity Theft Scheme Involving More Than $1 Million in LossesRead the Press Release
SANTA ANA, California – Seven Los Angeles-area residents have been charged with conspiracy to commit bank fraud for allegedly participating in an identity theft scheme that targeted hundreds of JP Morgan Chase & Co. account holders across the nation and caused more than $1 million in losses.
Six of the defendants were taken into custody earlier this week by special agents with the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the United States Secret Service. The seventh defendant is a fugitive who is currently being sought by authorities.
According to a criminal complaint filed in federal court on June 13, the defendants obtained confidential information belonging to Chase account holders, including birthdates and Social Security numbers. Armed with the stolen information, members of the organization posed as bank clients and withdrew money from the accounts of Chase customers, many of whom were elderly victims.
The accused ringleader – Hardy Jones, 64, of South Los Angeles (90043) – was arrested Wednesday. During his initial court appearance Wednesday afternoon, Jones was ordered held without bond and an arraignment was scheduled for him and the other defendants on July 8.
The criminal complaint alleges that, after obtaining confidential information belonging to Chase clients, Jones directed “runners” to go to Chase branches to obtain money from victims’ accounts. The runners received a cut as payment, typically one-fourth to one-third of the amount withdrawn. In addition to banks in the Los Angeles area, the criminal complaint describes unauthorized withdrawals at Chase branches in Illinois, Texas and Wisconsin.
When federal investigators executed a search warrant at Jones’ residence in March, they recovered numerous counterfeit driver’s licenses, Social Security cards and credit cards bearing the names of Chase account holders. Investigators also recovered detailed ledgers containing the names of Chase clients, their bank account numbers and other identifying information.
Also charged in the criminal complaint is Llewellyn Dickson, 48, of South Los Angeles (90044). Dickson, who also was taken into custody Wednesday, is suspected of helping oversee the fraud scheme and transporting runners to the banks to make the unauthorized withdrawals.
The remaining defendants named in the complaint allegedly served as runners who impersonated bank clients. They are:
Raymond Goodie, 56, of Long Beach; who was arrested Wednesday;Takisha Johnson, 37, of South Los Angeles (90061); who surrendered on Thursday;
Andrea Hadley, 44, of South Los Angeles (90044); who surrendered on Thursday;
Patricia Green, 59, of the Watts district of Los Angeles; who surrendered on Thursday; and
Brigette Boylan, 50, of Inglewood, who is fugitive being sought by authorities.
All seven defendants are charged with conspiracy to commit bank fraud, which carries a statutory maximum penalty of 30 years in federal prison.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
In addition to the FBI, HSI and the Secret Service, the United States Postal Inspection Service has provided substantial assistance with the case.
Anyone with information about this case – or who has information concerning the whereabouts of Boylan – is encouraged to contact the FBI at (310) 477-6565 or HSI at 1-866-DHS-2ICE (or visit http://www.ice.gov/exec/forms/hsi-tips/tips.asp).
Release No. 13-081
Santa Fe Man Sentenced to Federal Prison for Armed Robbery of K-Mart Store in Santa FeRead the Press Release
ALBUQUERQUE – Angelo Gutierrez, 22, of Santa Fe, N.M., was sentenced this morning to 84 months in federal prison followed by three year of supervised release for his conviction on conspiracy, Hobbs Act commercial robbery and firearms charges arising out of an armed robbery of a K-Mart Store in Santa Fe.
Angelo Gutierrez and his brother, Anthony Gutierrez, 43, were indicted in Jan. 2012, and charged with (1) conspiracy to violate the Hobbs Act by interfering with a business engaged in interstate commerce by robbery, (2) committing a Hobbs Act robbery, and (3) using and carrying a firearm in relation to a crime of violence. These three charges arose out of the Oct. 21, 2011 armed robbery of the K-Mart Store located at 1712 Saint Michaels Drive in Santa Fe. The indictment also charged Anthony Gutierrez, who previously had been convicted of residential burglary and larceny, with being a felon in possession of a firearm.
Angelo Gutierrez was arrested on Feb. 8, 2012, after being transferred from state custody to federal custody. He has been in federal custody since that time. On Dec. 3, 2012, Angelo Gutierrez entered a guilty plea to the three counts of the indictment against him without the benefit of a plea agreement.
Anthony Gutierrez was arrested on Feb. 15, 2012, after being transferred from state custody to federal custody. He has been in federal custody since that time. On Nov. 21, 2012, Anthony Gutierrez pled guilty to using and carrying a firearm in relation to a crime of violence and to being a felon in possession of a firearm. In entering his guilty plea, Anthony Gutierrez admitted entering the K-Mart Store on Oct. 21, 2011, with the intention of robbing the store of DVDs. While Anthony Gutierrez was attempting to steal the DVDs, K-Mart’s loss prevention officers attempted to apprehend him and he fought against the officers. During the fight, Anthony Gutierrez pointed a firearm at the officers causing the officers to release him and he fled from the scene with the firearm and the DVDs. Anthony Gutierrez admitted that he had a prior felony conviction at the time of these events. On March 27, 2013, Anthony Gutierrez was sentenced to 96 months in prison to be followed by three years of supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Santa Fe Police Department, with assistance from the K-Mart Store loss prevention officers. It was prosecuted by Assistant U.S. Attorneys Jon K. Stanford and Holland S. Kastrin.
Pine Ridge Woman Sentenced for Making False Statements on ApplicationsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota woman convicted of false statement was sentenced on June 11, 2013 by Chief Judge Jeffrey L. Viken, U.S. District Court.
Natalie White Plume, a/k/a Natalie Lame, age 36, was sentenced to 2 years of probation and ordered to pay $15,611 in restitution, and $100 to the Federal Crime Victims Fund.
White Plume was indicted for false statement by a federal grand jury on November 19, 2012. The charge relates to White Plume not disclosing all of her income on her Economic Assistance Application for Temporary Assistance to Needy Families (TANF) and in her application for the Supplemental Nutrition Assistance Program (SNAP). White Plume pled guilty to the charge on March 8, 2013.
This case was investigated by South Dakota Department of Social Services.
Pine Ridge Man Guilty of ArsonRead the Press Release
United States Attorney Brendan V. Johnson announced that Emmanuel Lee Warrior, a/k/a Mani Warrior, age 23, of Pine Ridge, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy on June 13, 2013 and pled guilty to Arson.
The maximum penalty upon conviction is life imprisonment and/or a $250,000 fine.
In July 2012, Warrior intentionally set fire to a pile of clothing in another person’s trailer, burning the trailer down.
The investigation was conducted by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. The case is being prosecuted by Assistant U.S. Attorney Sarah B. Collins.
A presentence investigation was ordered and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Payette Man Sentenced for Possessing Firearms in Furtherance of Drug TraffickingRead the Press Release
BOISE – Chadwick Duane Powell, 35, of Payette Idaho, was sentenced today in United States District Court to 75 months in prison followed by five years of supervised release for possession of firearms in furtherance of drug trafficking crimes, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Powell to forfeit two firearms and the ammunition he possessed, and to pay $2,670.42 in restitution for the cleanup of hazardous materials related to a methamphetamine laboratory that Powell kept in a shed behind his residence. On March 12, 2013, Powell pleaded guilty to count three of the superseding indictment.
According to the plea agreement, on June 11, 2012, law enforcement officers executed a search warrant at a residence in Fruitland, Idaho. Powell was located hiding in a closet in the master bedroom. After retrieving a key from Powell, the officers unlocked a shed behind the residence that housed a small methamphetamine laboratory. The building contained chemicals, ingredients and equipment necessary to manufacture and produce methamphetamine. In Powell’s bedroom, law enforcement located a glass jar containing 41.1 grams of pseudoephedrine. In the shed, officers found a modified Winchester 12 gauge shotgun with a sawed-off barrel and six shotgun shells. According to the plea agreement, Powell admitted he possessed the shotgun in furtherance of drug trafficking crimes, including manufacturing methamphetamine and maintaining premises for the purpose of manufacturing methamphetamine. Officers also discovered a loaded FEG 9mm handgun with a single round of 9 millimeter ammunition in Powell’s bedroom. A box of 9 millimeter ammunition containing 29 rounds was located in the garage next to the shed which housed the methamphetamine laboratory.
The case was investigated by Idaho State Police, Fruitland Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Palm Beach County Resident Pleads Guilty to Enticement of A Minor to Engage in Unlawful Sexual ActivityRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announced that Gary Goldberg, 49, of Palm Beach County, pled guilty on Friday, June 14, 2013, before U.S. District Judge Kenneth A. Marra in West Palm Beach, Florida, to one count of enticing a minor to engage in an illegal sexual activity, in violation of 18 U.S.C. section 2422(b).
Sentencing has been scheduled for September 16, 2013. At sentencing, Goldberg faces a statutory mandatory minimum sentence of 10 years and a maximum term of up to life in prison on the enticement of a minor count.
According to documents filed with the court, Goldberg entered into a sexual relationship with a 17 year old victim and her 15 year old friend. In addition, Goldberg paid the minor victims to allow him to take sexually explicit photographs of them.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Ferrer commended the investigative efforts of the FBI, Boca Raton Police Department, the FBI Safe Streets Task Force, and the South Florida Minor Vice Task Force. The case is being prosecuted by Assistant U.S. Attorney Lothrop Morris.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Owner of Louisiana-based Health Care Company Sentenced in Texas to 97 Months in Prison in Connection with $6.7 Million Medicare Fraud SchemeRead the Press Release
The owner and operator of a Louisiana-based durable medical equipment (DME) company was sentenced today to serve 97 months in prison for his role in a $6.7 million Medicare fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Kenneth Magidson of the Southern District of Texas; and Special Agent in Charge Mike Fields of the Dallas Regional Office of the U.S. Department of Health and Human Service’s Office of the Inspector General (HHS-OIG).
Kenny Msiakii, 45, of Houston, was sentenced by U.S. District Judge Nancy Atlas in the Southern District of Texas. In addition to his prison term, Msiakii was sentenced to serve three years of supervised release and ordered to pay $2.5 million in restitution. On Dec. 13, 2012, a federal jury found Msiakii guilty of eight counts of health care fraud.
According to court documents, Msiakii was the owner and operator of Joy Supply and General Services, a company based in Shreveport, La., that purported to provide orthotics and other DME, including power wheelchairs, to Medicare beneficiaries.
Msiakii used Joy Supply’s Medicare provider number to submit claims to Medicare for DME, including orthotic devices, that were medically unnecessary and, in some cases, never provided. Many of the orthotic devices were components of “arthritis kits” and purported to be for the treatment of arthritis-related conditions; however, the devices were neither medically necessary nor appropriate for such conditions. The arthritis kit generally contained a number of orthotic devices including braces for both sides of the body and related accessories such as heat pads.
According to court documents, from November 2007 through September 2009, Msiakii submitted claims of approximately $6.7 million to Medicare and was paid approximately $3.6 million for devices that were not medically necessary and, in some cases, never provided.
This case is being prosecuted by Assistant Chief Laura M.K. Cordova of the Criminal Division’s Fraud Section. The case was brought as part of the Medicare Fraud Strike Force, supervised by the U.S. Attorney’s Office for the Southern District of Texas and the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Owensboro, Kentucky, Man Charged in Defrauding Elderly Couple of over $200,000 in Retirement SavingsRead the Press Release
– Money allegedly spent on personal expenses including Hummer vehicle and motorcycle
OWENSBORO, Ky. – David J. Hale, United States Attorney for the Western District of Kentucky, today announced the indictment and arrest of an Owensboro, Kentucky, man charged with six counts of mail fraud in connection with defrauding over $200,000 from an elderly Daviess County, Kentucky, couple.
Robert K. Gray was charged by a federal grand jury meeting in Bowling Green, Kentucky on June 12, 2013, and the seal was lifted today, following Gray’s arrest in Owensboro, by the Federal Bureau of Investigation. Gray had an initial appearance on the charges today, in United States District Court in Bowling Green, Kentucky before Magistrate Judge H. Brent Brennenstuhl, and counsel was appointed to represent him. He is scheduled to be arraigned in United States District Court in Owensboro on June 27, 2013, at 10:00 a.m. CST.
According to the indictment, Gray defrauded the couple by making material misrepresentations about an investment opportunity in the defendant’s construction company, after making home improvements to the couple’s residence in excess of $300,000, an amount that is more than double the assessed value of the property.
Specifically, between January 13, 2010, through August 5, 2010, C.R. paid $338,000 to the defendant Robert Gray, and to his brother (not a defendant in the indictment), for renovations to his home which, in 2013, according to the property valuation records kept by the City of Owensboro was valued at $148,000.
Further, between July 10, 2010, and December 17, 2010, Gray is charged with devising a scheme to defraud C.R. and U.R. of their GE retirement fund in the total amount of $220,000. Specifically, Gray asked C.R. to invest in his start-up company, Unlimited Constructors, to fund projects Gray said the company had in Madisonville, Kentucky and on Highway 54 in Owensboro. Gray promised C.R. a substantial return on his investment, when in truth and in fact, Gray knew Unlimited Constructors did not have construction projects for a shopping center in Madisonville, Kentucky, or for any commercial development on Highway 54 in Owensboro.
It was further part of the scheme to defraud that an Unlimited Constructors bank account was opened by defendant Gray at US Bank on September 27, 2010. According to the indictment, none of the funds obtained from C.R. were used in construction projects in Madisonville or Owensboro. According to bank records, the account was solely funded by checks drawn on a retirement fund, made payable to C.R. and U.R. Gray allegedly used the funds to pay for personal expenses and to purchase vehicles including a 2006 Hummer for $25,000 the day after the account was opened, and, approximately two weeks later, to purchase a 2006 Kawasaki motorcycle for $5,000. If convicted at trial, Gray faces 120 years in prison, a $1,5000,000 fine, and a three year period of supervised release.
This case is being prosecuted by Assistant United States Attorney Marisa Ford, and is being investigated by the Federal Bureau of Investigation (FBI).
Omaha Man Sentenced for Conspiracy to Defraud the IRSRead the Press Release
United States Attorney Deborah R. Gilg announced that United States District Court Judge Joseph F. Bataillon sentenced Michael D. Haffke, age 50 of Omaha, Nebraska, to one year and one day of imprisonment following his conviction for conspiracy to defraud the Internal Revenue Service. Haffke was further ordered to serve two years of supervised release following his release from prison and to serve 100 hours of community service.
From January 1, 2000, through on or about December 31, 2007, Haffke participated in a conspiracy which was designed to hide or remove his name from income producing assets and to attempt to evade personal tax liabilities. As part of the conspiracy, Haffke created in excess of 40 nominee entities in order to purport to claim ownership of assets that were actually owned and controlled by Haffke. A limited partnership called The Rock Place was created and the partnership purported to lease equipment, real estate and improvements from the nominee entities for the purpose of artificially increasing costs in order to reduce income of the partnership which would have been attributed to Haffke for tax purposes. However, monies from these purported lease payments were deposited into nominee bank accounts in Colorado which funds were ultimately distributed to Haffke for his own personal use. As a further part of this scheme, Haffke did not file any personal tax returns during the years 2003 through 2008. The IRS determined the tax loss associated with this scheme was $422,350.00.
In 2012, Haffke did file personal tax returns with the IRS for tax years 2003 through 2007 and did pay the taxes owed. As part of the plea agreement, Haffke has agreed to work with the IRS to determine what additional taxes might be due and owing and to satisfy those tax liabilities.
This case was investigated by the Internal Revenue Service Criminal Investigation Division. With respect to this case, Sybil A. Smith, Special Agent in Charge, stated, “Placing income and property in the names of nominee corporations to conceal the true facts from the IRS is not tax planning; it’s criminal activity.”
Oak Grove Couple Sentenced for $800,000 Tax Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Oak Grove, Mo., husband and wife were sentenced in federal court today for an $800,000 tax fraud scheme and related charges of mail fraud, money laundering and using fictitious financial instruments.
Joshua Simonson, 35, and his wife, Kristen Simonson, 35, of Oak Grove, were sentenced by U.S. District Judge Dean Whipple. Joshua Simonson was sentenced to 12 years and seven months in federal prison without parole. Kristen Simonson was sentenced to five years and 11 months in federal prison without parole. The court also ordered the Simonsons to pay $810,218 in restitution (the government has already seized $129,000 from the Simonsons).
The Simonsons were convicted by a federal jury on Dec. 5, 2012, of all 11 counts contained in a federal indictment.
Evidence introduced during the trial indicated that Joshua and Kristen Simonson participated in a conspiracy to defraud the government by filing fraudulent tax returns. They received more than $800,000 in refunds for taxes they claimed were withheld on interest income they earned. In reality, they had not earned – or paid tax on – any interest income. None of the banks, creditors or lenders that were listed on their submitted Forms 1099-OID actually issued those fictitious documents. The Simonsons calculated those fraudulent Forms 1099-OID according to an arbitrary and capricious formula (they aggregated their debts), which in no way constituted actual interest income.
In addition to the conspiracy, Joshua Simonson was convicted of one count of filing false claims for tax returns and Kristen Simonson was convicted of two counts of filing false claims for tax returns.
The Simonsons recruited a former tax preparer in California to prepare their tax returns for 2006 and 2007. The Simonsons reviewed and signed their fraudulent tax returns. Kristen Simonson mailed her 2006 and 2007 returns to the IRS, for which she was convicted of two counts of mail fraud. Joshua Simonson submitted his 2007 return electronically.
As a result of their fraudulent claims, the Simonsons received three refund checks totaling $810,218. Kristen Simonson received a $582,277 refund check and a $4,215 refund check. Joshua Simonson received a $223,726 refund check.
In an effort to prevent the IRS from seizing the fraudulent refunds, Joshua Simonson tried to conceal the money by moving it among various bank accounts and trusts. As a result, Joshua Simonson was convicted of two counts of money laundering. Joshua Simonson used criminally derived proceeds to purchase a $50,529 sport utility vehicle, for which he was convicted of a third count of money laundering.
The IRS repeatedly called, sent letters and visited the Simonsons, indicating the government’s intention to recover the fraudulent funds. In response, Joshua Simonson mailed a package to the IRS containing two signed, fictitious checks totaling more than $1.3 million. The checks were purportedly drawn on the Federal Reserve Bank of Atlanta, Ga. As a result, Joshua Simonson was convicted of two counts of utilizing fictitious obligations.
This case was prosecuted by Assistant U.S. Attorneys Daniel M. Nelson and Roseann Ketchmark. It was investigated by IRS-Criminal Investigation and the Treasury Inspector General for Tax Administration (TIGTA).
Nine Individuals Indicted and Fourteen 7-Eleven Stores Secured as Federal Authorities Shut Down Multi-State Scheme to Conceal Systematic Employment of Illegal Immigrants, Victimize Immigrant Employees, and Steal IdentitiesRead the Press Release
BROOKLYN, NY – Earlier today, two indictments were unsealed charging eight men and one woman from Long Island, New York, with conspiring to commit wire fraud, stealing identities, and concealing and harboring illegal immigrants employed at 7-Eleven, Inc. (7-Eleven) franchise stores located throughout Long Island and Virginia.1 Through this scheme, the defendants, who owned, managed and controlled fourteen 7-Eleven franchise stores during the course of the conspiracies, allegedly hired dozens of illegal immigrants, equipped them with more than 20 identities stolen from United States citizens, housed them at residences owned by the defendants, and stole substantial portions of their wages. If convicted, the defendants will face 20 years’ imprisonment on wire fraud conspiracy and alien harboring charges, as well as multiple counts of aggravated identity theft, which carries a mandatory, consecutive two-year term of incarceration. In addition, all property used to facilitate the harboring of illegal immigrants, together with all proceeds of the wire fraud conspiracy and alien harboring charges, are subject to forfeiture. The defendants will be presented for arraignment later today at the United States Courthouses in Central Islip, New York and Norfolk, Virginia.
The indictments, arrests and seizures are the result of one of the largest criminal immigrant employment investigations ever conducted by the Department of Justice and the Department of Homeland Security. As set forth in court filings, the government has moved to forfeit the franchise rights to ten 7-Eleven stores in New York and four 7-Eleven stores in Virginia. In the indictments, the government has also moved to forfeit five houses in New York worth over $1.3 million. According to the Department of Homeland Security, the case announced today constitutes the largest criminal immigration forfeiture in its history. In addition, earlier today, federal agents fanned out across the country to execute multiple search and seizure warrants and inspect approximately 30 7-Eleven franchise stores. The actions taken are the initial results of an ongoing investigation into the employment and exploitation of illegal immigrants at 7-Eleven franchise stores nationwide.
The charges, arrests and seizures were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, New York Field Office (HSI); Edward Ryan, Special Agent-in-Charge, Social Security Administration, Office of the Inspector General (SSA-OIG); Joseph A. D’Amico, Superintendent, New York State Police; and Edward Webber, Commissioner, Suffolk County Police.
“As set forth in the indictments, the defendants used 7-Eleven as a platform from which to run elaborate criminal enterprises. From their 7-Eleven stores, the defendants dispensed wire fraud and identity theft, along with Slurpees and hot dogs. In bedroom communities across Long Island and Virginia, the defendants not only systematically employed illegal immigrants, but concealed their crimes by raiding the cradle and the grave to steal the identities of children and even the dead. Finally, these defendants ruthlessly exploited their immigrant employees, stealing their wages and requiring them to live in unregulated boarding houses, in effect creating a modern day plantation system,” stated United States Attorney Lynch. “As this case shows, we are committed to preserving the rule of law and protecting our communities from the abuses of corrupt businessmen seeking to gain illegal advantage. I would like to thank our partners at HSI, New York State Police, Suffolk County Police and SSA-OIG for their hard work on this important investigation.”
“The 7-11 franchises seized today will be better known for their big fraud than their Big Gulp. As alleged, the franchise owners knowingly and repeatedly employed an illegal workforce and abused and exploited that workforce for more than 13 years,” said HSI Special Agent-in-Charge Hayes. “This charged criminal scheme had a vast detrimental effect on both the employees who were overworked and cheated out of wages, as well as the more than 25 American citizens whose lives were upended by the theft of their identities in furtherance of the scheme.”
New York State Police Superintendent D’Amico, stated, “As alleged in the indictment, these nine individuals took full advantage of illegal immigrants through a multi-state scheme that generated millions in profits for themselves while ignoring the common decency in the employer/employee relationship. The defendants allegedly provided the illegal immigrants with false documentation, stole significant portions of their wages and set them up in living arrangements that left the individuals completely beholden to them. I commend the unwavering dedication of the State Police Investigators who worked with our partners from federal, state and local law enforcement to make these defendants accountable for their actions.”
“As charged in the indictments, the defendants have been exploiting vulnerable individuals who, due to their immigration status, may have been afraid to come forward and report possible wrongdoing by their employers,” said Suffolk County Police Commissioner Webber. “This multi-agency investigation illustrates our commitment to fighting against employers who abuse immigrant employees for their own financial gain.”
SSA-OIG Special Agent-in-Charge Ryan stated, “The Social Security Number System within the Social Security Administration (SSA) tracks individuals’ earnings throughout their work history to later determine the SSA retirement benefit they have earned. The type of alleged actions of the individuals named in this indictment not only violates federal law, but also threatens the integrity of the Social Security Number System by causing wages to be erroneously posted to SSA’s system of records. We appreciate the cooperation of the represented law enforcement agencies here today in our ongoing initiatives to prevent fraud, waste and abuse of SSA programs.”
The Illegal Conduct
According to the indictments and court papers filed in the Eastern District of New York, the defendants Farrukh and Bushra Baig are a married couple who owned, co-owned and/or controlled twelve of the 7-Eleven franchise stores, located on Long Island, New York and in Virginia. Defendants Zahid Baig and Shannawaz Baig are Farrukh Baig’s brothers, who helped to manage and control the stores, assisted by defendants Malik Yousaf, Tariq Rana and Ramon Nanas. Brothers Ahzar Zia and Ummar Uppal, indicted separately, owned and controlled two other Suffolk County 7-Eleven franchise stores.
As franchisees of 7-Eleven, the defendants received a license from the national company to utilize the 7-Eleven trademarks, specialized equipment (such as Slurpee and hot dog machines), and the stores’ physical structures and real property, which were owned or leased by 7-Eleven. The defendants also received access to 7-Eleven’s automated payroll service, through which they inputted each employee’s personal identifying information and hours worked into the data terminals located at the stores, for electronic transmission to 7-Eleven corporate headquarters. Working with the data provided by the defendants, 7-Eleven processed the payroll and, after subtracting certain expenses, issued wages in the form of checks, direct deposits or debit cards.
According to court filings, from 2000 until the present, the defendants collectively and systematically employed more than 50 illegal immigrants at fourteen 7-Eleven franchise stores in Long Island and Virginia. Rather than transmitting the true identification information of the illegal immigrant employees to 7-Eleven headquarters for processing, the defendants allegedly used more than 20 stolen identities, submitting stolen names and Social Security numbers of United States citizens to conceal the presence of illegal immigrants on the 7-Eleven franchise store payrolls. 7-Eleven headquarters processed the payroll and sent the employees’ wages to the defendants for distribution. The defendants then allegedly stole significant portions of the illegal immigrants’ wages, rather than paying the workers in full. The defendants also required the illegal immigrant to live in residences owned by the defendants and to pay rent in cash to the defendants.
As alleged in court documents, the victims of the identity theft hail from seven states, range in age from 8 to 78 years old, and include a child, three dead people and a Coast Guard cadet. In addition, the defendants, together with others, caused the 7-Eleven payroll service to transmit this false information, including the stolen identity information, to United States regulatory agencies, such as the Internal Revenue Service and the Social Security Administration.
During the scheme, the defendants allegedly generated over $182 million in proceeds from the 7-Eleven franchise stores. Profits from those stores were shared by the defendants and 7-Eleven.
The first status conferences in this case are scheduled for Wednesday, July 17, 2013, at 11:15 A.M., before United States District Judge Sandra J. Feuerstein, at the federal courthouse in Central Islip, New York.
The government’s case is being prosecuted by Assistant United States Attorneys Christopher A. Ott, Brian Morris and Elliot M. Schachner.
Tips and Information
HSI encourages the public to report suspected labor trafficking, forced labor or the exploitation of undocumented workers through its toll-free hotline at 1-866-347-2423 (from the U.S. and Canada), or from anywhere in the world at 1-802-872-6199, or online at www.ice.gov/tips.
For questions or concerns about immigrant workers and job seekers, contact the New York State Department of Labor Division Policies and Affairs (DIPA) at its toll-free worker hotline (1-877-466-9757).
The Defendants
FARRUKH BAIG
Citizenship: Naturalized United States Citizen
Age: 57
Head of Harbor, New YorkBUSHRA BAIG
Citizenship: Naturalized United States Citizen
Age: 49
Head of Harbor, New YorkMALIK YOUSAF
Citizenship: Naturalized United States Citizen
Age: 51
South Setauket, New YorkZAHID BAIG
Citizenship: Naturalized United States Citizen
Age: 52
Chesapeake, VirginiaSHANNAWAZ BAIG
Citizenship: Naturalized United States Citizen
Age: 62
Virginia Beach, VirginiaTARIQ RANA
Citizenship: Pakistan
Age: 34
Chesapeake, VirginiaRAMON NANAS
Citizenship: Republic of the Philippines
Age: 49
Great River, New YorkAZHAR ZIA
Citizenship: Naturalized United States Citizen
Age: 49
Great River, New YorkUMMAR UPPAL
Citizenship: Pakistan
Age: 48
Islip Terrace, New York_____________________________
1 The charges contained in the indictments are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
New York Immigration Judge Participates in Naturalization CeremonyRead the Press Release
NEW YORK -- Immigration Judge Joanna M. Bukszpan from the Executive Office for Immigration Review, New York Immigration Court, delivered the keynote speech and administered the oath of allegiance to approximately 150 candidates during a naturalization ceremony at 26 Federal Plaza in New York on July 12, 2013. The New York District Office of U.S. Citizenship and Immigration Services, Department of Homeland Security, hosted the ceremony.
Biographical Information
Attorney General Janet Reno appointed Judge Bukszpan in September 1995. Judge Bukszpan received a bachelor of arts degree in 1963 from the City University of New York and a juris doctorate in 1976 from Brooklyn Law School. From 1978 to 1995, she was in private practice in New York. From 1976 to 1978, she worked as a trial attorney/general attorney (nationality) for the former Immigration and Naturalization Service in New York. Judge Bukszpan is a member of the District of Columbia and New York State Bars.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
Executive Office for Immigration ReviewNeopit, Wisconsin Woman Sentenced to Three Years' Probation for Assault with a Dangerous WeaponRead the Press Release
United States Attorney James L. Santelle announced that Raissa A. Askenette, (age: 33) of Neopit, located on the Menominee Indian Reservation, in the State of Wisconsin, was sentenced on May 20, 2013 in Green Bay by United States District Court Chief Judge William Gresbach, to three years on probation, with 180 days of home confinement. The sentence was the result of a guilty plea by Askenette on February 28, 2013, to a federal indictment charging her with assault with a dangerous weapon.
On September 23, 2012, Menominee Tribal Police Department officers arrested Askenette, who was subsequently booked into the Menominee Tribal Jail. While at the jail
# # # # #
Askenette hit the correctional officer in the face with her metal crutch. The correctional officer suffered a nasal fracture as a result of the assault.
The case was investigated by the Menominee Tribal Police Department and the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Benjamin L. Whittemore.Mobile County Man Sentenced to 72 Months for Drug and Related Gun ConvictionsRead the Press Release
The United States Attorney Kenyen Brown announces that Robert Kidd, a 36 year old, Prichard, Alabama resident, was sentenced today to 12 months incarceration for possessing crack cocaine with the intent to distribute it followed by 60 months incarceration for the possession of a handgun in furtherance of the drug crime.
The Saraland Police Department investigated the case and presented it to the U.S. Attorney’s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Mission Man Charged with Aggravated Sexual AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that Zachary Poorman, age 25, of Mission, South Dakota appeared before U.S. District Judge Roberto A. Lange on June 13, 2013 and pled guilty to Aggravated Sexual Abuse.
The maximum penalty upon conviction is life in custody, a $250,000 fine, or both; life of supervised release; and $100 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on October 29, 2013, when Poorman sexually abused the victim by force.
The investigation was conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Tim Maher.
A presentence investigation was ordered and a sentencing date was set for September 9, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Michigan Man Gets Federal Prison Time for Heroin PossessionRead the Press Release
HUNTINGTON, W.Va. – U.S. Attorney Booth Goodwin announced that a Michigan man was sentenced on June 17 to one year and four months in federal prison for aiding and abetting the possession with intent to distribute heroin. Ralph Oliver Mayes, Jr., 37, of Dearborn Heights, Michigan, previously pleaded guilty in March. The sentence was handed down by Chief United States District Judge Robert C. Chambers.
On January 9, 2013, officers with the Barboursville Police Department arrested Mayes for obstructing and possession of Vicodin tablets. Following his arrest, Mayes was transported to the Barboursville Police Department. During a custodial search of the defendant, police found two bags containing 33 individually wrapped bags of a substance that field tested positive for heroin. Each bag contained approximately .1 gram of heroin. Mayes told police that he intended to sell the heroin.
The Barboursville Police Department and the Huntington Violent Crimes and Drug Task Force conducted the investigation. Assistant United States Attorney Gregory McVey handled the prosecution.
Mexican Nationals Sentenced for Drug Trafficking Violations in Smith County, TexasRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – Two Mexican nationals living in Tyler, Texas, have been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Jose Ruben Vaca-Saucedo, 26, pleaded guilty on Mar. 4, 2013, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 80 months in federal prison today by U.S. District Judge Leonard E. Davis. The court also ordered the defendant to submit to forfeiture of $10,000.
Vaca-Saucedo’s brother, Juan Carlos Vaca, 28, pleaded guilty on Mar. 4, 2013, to distribution of methamphetamine and was sentenced to 57 months in federal prison today by Judge Davis. Vaca was ordered to submit to forfeiture of $2,600.
According to information presented in court, from May 2010 to January 2011, the brothers conspired to possess more than 182 grams of methamphetamine which they intended to deliver to others in the Tyler, Texas area. A federal grand jury returned an indictment on Feb. 1, 2012, charging the brothers with drug trafficking violations.
This case is the result of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Allen Hurst.
Mexican National Sentenced to Six Years for Role in Berks-Schuylkill County Drug RingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a 31-year-old Mexican national who resided in the Reading area at the time of his arrest in November 2011, was sentenced today to serve six years in prison for participating in a drug trafficking conspiracy by Senior U.S. District Court Judge A. Richard Caputo.
According to United States Attorney Peter J. Smith, Ivan Villasenor previously pleaded guilty to conspiracy to distribute more than five kilograms of cocaine and more than 500 grams of methamphetamine. The drug conspiracy operated in the Schuylkill and Berks County area between August and November 2011.
Villasenor was indicted by a federal grand jury in November 2011, as a result of an investigation by the Drug Enforcement Administration. Two co-defendants, Jose Sandoval-Martinez and Isaac Villasenor, have also pleaded guilty to participating in the conspiracy. Sandoval-Martinez was sentenced to 10 years in prison. Isaac Villasenor is awaiting sentencing.
Judge Caputo also ordered that Ivan Villasenor be placed on five years of supervised release after serving his prison sentence, and pay a $100 special assessment. Villasenor also faces possible deportation as a result of his conviction.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
****Manhattan U.S. Attorney Announces the Arrests of Two Rikers Island Correction Officers for Marijuana DealingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Rose Gill Hearn, the Commissioner of the New York City Department of Investigation (“DOI”), and Brian R. Crowell, Special Agent-in-Charge of the New York Field Office of the U.S. Drug Enforcement Administration (“DEA”), today announced the arrests of Correction Officers AUSTIN ROMAIN and KHALIF PHILLIPS for engaging in marijuana dealing inside Rikers Island prison facilities. It is alleged that, while on duty as Correction Officers, ROMAIN and PHILLIPS smuggled marijuana and scalpels into two different maximum security Rikers Island prison facilities and sold them to inmates. ROMAIN and PHILLIPS were arrested today while at work on Rikers Island and will be presented in Manhattan federal court before U.S. Magistrate Judge Kevin Nathaniel Fox tomorrow.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, correction officers Austin Romain and Khalif Phillips had a duty to ensure the security and safety of the prisons and inmates in their care, but instead they compromised it in the name of personal profit by smuggling and aiding in the selling of drugs, scalpels, and other contraband. We will not tolerate misuse of authority by those entrusted with supervising incarcerated individuals and keeping them safe, but who instead choose to join them in unlawful activity.”
DOI Commissioner Rose Gill Hearn said: “With 30 contraband arrests involving DOC employees in the past 10 years, DOI has worked hard to send the message that those who smuggle drugs and weapons into the City’s jails will face criminal penalties. The Correction Officers arrested today allegedly subverted jail safety and made their fellow-officers' jobs more difficult and dangerous. We will continue to investigate this insidious form of corruption and work with our colleagues in the U.S. Attorney’s Office, the DEA, other law enforcement agencies, and the Department of Corrections to ensure this kind of abuse is rooted out.”
DEA Special Agent-in-Charge Brian Crowell stated: “This two year investigation into an illicit contraband distribution ring operating within the jail cells of Rikers Island uncovered two Correction Officers allegedly responsible for smuggling contraband into the jail. The alleged contraband distribution ring supplied inmates with drugs, scalpels and various illicit products that were requested and paid for through an evasive money wiring system the officers oversaw outside the jails walls. Their alleged actions endangered their fellow officers. I commend the diligent investigation by the NYC Department of Investigation and the New York Drug Enforcement Task Force.”
According to the allegations in the Complaint unsealed today in Manhattan federal court:
ROMAIN has worked as a Correction Officer for the New York City Department of Corrections since August 2007 and during all relevant time periods was assigned to two different maximum security facilities on Rikers Island, the George R. Vierno Center (the “GRVC”) and the Otis Bantum Correctional Center (the “OBCC”). PHILLIPS has worked as a Correction Officer since February 2006 and was assigned to the GRVC.
On multiple occasions during the past year, ROMAIN and PHILLIPS have smuggled marijuana into the GRVC and the OBCC and sold it to numerous inmates housed in those facilities who in turn sold it to other inmates. ROMAIN and PHILLIPS also smuggled scalpels and tobacco into the facilities and sold them to other inmates.
While ROMAIN and PHILLIPS worked independently from each other, both of them essentially supplied the inmates with marijuana in the same manner. In general, the defendants would contact the inmates’ wives and girlfriends via cellphone numbers provided to them by the inmates and arrange to pick up the marijuana, tobacco, and scalpels from them. ROMAIN and PHILLIPS charged the inmates a fee to bring them the marijuana, scalpels, and tobacco. The inmates then sold the marijuana and other contraband that ROMAIN and PHILLIPS supplied to them.
ROMAIN, 31, and PHILLIPS, 31, both of Brooklyn, New York, are each charged with one count of engaging in a conspiracy to distribute and possess with the intent to distribute a controlled substance and one count of distributing and possessing with the intent to distribute a controlled substance. They each face a maximum sentenced of 10 years in prison (five years on each count).
Mr. Bharara praised the investigative work of the DOI and the DEA’s New York Drug Enforcement Task Force, comprised of members of the DEA, the New York City Police Department, and the New York State Police.
This case is being handled by the Office's Public Corruption and Narcotics Units. Assistant United States Attorneys Carrie H. Cohen and Russell Capone are in charge of the prosecutions.
The charges contained in the Complaint are merely accusations and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Austin Romain and Khalif Phillips Complaint