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30 July 2013
Former Long Island Stockbroker Pleads Guilty in Connection with 17 Years of Financial Fraud SchemesRead the Press Release
Earlier today, at the federal courthouse in Central Islip, New York, Mark Hotton, a former Long Island stockbroker, pled guilty to conspiring to launder the illicit proceeds of almost two decades of fraud before United States District Judge Joanna Seybert. When sentenced, Hotton faces up to 20 years in prison, forfeiture of $1.8 million and restitution of up to $5.75 million to the victims of his frauds.
According to court filings and facts presented at the plea proceeding, between January 1995 and October 2012, Hotton used funds he obtained from a series of securities fraud schemes, mail fraud schemes and other crimes to promote his continuing illegal conduct. Throughout the conspiracy, Hotton also laundered proceeds of his frauds to pay employees cash wages, thereby avoiding federal withholding taxes intended for Social Security, Medicare and Medicaid. The defendant also laundered funds to avoid required payments to union pension and benefit funds.
The guilty plea was announced by Loretta E. Lynch, the United States Attorney for the Eastern District of New York; Toni Weirauch, Special Agent-in-Charge, New York Field Office of the Internal Revenue Service, Criminal Investigation; and Deputy Inspector General, Daniel R. Petrole of the U.S. Department of Labor, Office of the Inspector General, Office of Labor Racketeering and Fraud Investigations.
“Mark Hotton was a stockbroker who earned a substantial income, but that wasn’t enough for him. For almost two decades, he was the star of his own drama, cheating investors, partners, and his own employees to prop up the fairy tale of his success. Today the curtain has finally fallen on the tale of fraud and deception staged by this defendant, and he stands revealed as the fraud and con man that he is. He will now be held to account for his actions,” stated United States Attorney Lynch. Ms. Lynch expressed her grateful appreciation to the IRS-CI and the DOL-OIG for their investigation and participation in this case.
Hotton was arrested by federal agents on Monday, October 15, 2012, on these offenses, as well as additional fraudulent conduct in the Southern District of New York arising from the financing of the proposed Broadway play “Rebecca.” Hotton pleaded guilty to charges, arising from that conduct, yesterday in United States District Court in Manhattan.
The government’s case is being prosecuted by Assistant U.S. Attorneys Burton T. Ryan, Jr. and Melanie Hendry.
This prosecution was the result of efforts 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. For more information on the task force, visit http://www.StopFraud.gov.
The Defendant
MARK C. HOTTON
Age: 47
Residence: West Islip, New YorkFormer Fugitive Finally Sent to PrisonRead the Press Release
BROWNSVILLE, Texas – Juan Becerra Vallejo, 55, has just been handed a federal prison term following his conviction of possessing with intent to distribute cocaine, United States Attorney Kenneth Magidson announced today. Vallejo, a resident alien from Mexico who resided in Weslaco, pleaded guilty March 14, 2012.
Today, U.S. District Judge Hilda G. Tagle, who accepted the guilty plea, sentenced Vallejo to a total of 210 months in federal prison to be followed a five-year-term of supervised release. In handing down the sentence, Judge Tagle noted that Vallejo exercised management responsibility over the property, assets and activities of a criminal organization by arranging the transportation of multi-kilogram loads of marijuana and cocaine as well as millions of drugs proceeds for multiple drug suppliers.
Vallejo was indicted in 2009 at which time the court issued a warrant for his arrest. He was apprehended on Oct. 27, 2011.
The charges against Vallejo stem from a January 2005 investigation conducted by the Drug Enforcement Administration (DEA). That investigation led to the discovery that Noel Exinia, of La Feria and owner of NE and Family Transport, used one of his company’s tractor trailers to deliver approximately 234 kilograms of cocaine from the Rio Grande Valley to New York City. It was later discovered that Vallejo made the arrangements with Exinia for the transportation of the narcotics load to New York City and had caused the distribution of the load to Exinia for this purpose.
He has been in custody since his arrest where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
As a result of the overall Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed Operation Hot Pursuit, $805,416 in illegal drug proceeds have been seized.
Exinia himself pleaded guilty after hearing four days of evidence at a jury trial in October 2005. He was later sentenced to 600 months in federal prison.
The OCDETF investigation was conducted by the DEA, Cameron County District Attorney’s Office - Narcotics Division, FBI, Border Patrol, Internal Revenue Service-Criminal Investigation and the United States Marshals Service. The case was prosecuted by Assistant U.S. Attorneys Charles Lewis and Israel Cano III.
Former Freeport Man Sentenced to 20 Years in Federal Prison for Witness RetaliationRead the Press Release
ROCKFORD — A former Freeport, Ill. man was sentenced today in federal court to 20 years in federal prison for retaliating against and causing bodily injury to a witness. The defendant, DAMON RUCKER, 36, was also ordered by U.S. District Judge Frederick J. Kapala to serve 3 years on supervision following his release from prison. Rucker had been charged with causing bodily injury to the witness on Dec. 20, 2012.
Rucker was found guilty of the charge by a federal jury in Rockford, on April 23, 2013, following a two-day jury trial. According to the indictment and evidence at trial, Rucker was initially convicted in federal court in Rockford on July 31, 2012, of a drug trafficking crime. A co-defendant, who also pled guilty in that case, agreed to cooperate with the government and testified against Rucker during Rucker’s sentencing hearing. On Dec. 20, 2012, Rucker, with intent to retaliate against the co-defendant for testifying, slammed the witness’s head against a concrete wall while both were in custody. At the time, the victim was in the process of being transported to a different jail and was in hand and leg shackles. Rucker was not shackled at the time.
Judge Kapala ordered that today’s sentence of 20 years must be served consecutive to the 87 months in prison that Rucker was sentenced to on the drug trafficking conviction. Rucker will not be eligible for parole.
The sentencing was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation. The United States Marshals Service and the Ogle County Sheriff’s Office assisted in the investigation.
The government was represented by Assistant U.S. Attorneys Scott R. Paccagnini and John G. McKenzie.
Former Citibank Employee Who Bilked Former Salomon Brothers Former Partner Out of $1.3 Million Gets 54 Months in PrisonRead the Press Release
Former Assistant Also Failed to Pay More Than $250,000 in Taxes
NEWARK, N.J. – A former Citibank employee was sentenced today to 54 months in prison for stealing more than $1.3 million from William Salomon, a 98-year-old former managing partner of Salomon Brothers, which was later acquired by Citibank, U.S. Attorney Paul J. Fishman announced.
Karen Febles, 48, of Wallington, N.J., who worked as an executive assistant for Citibank, helping Salomon with his personal and professional finances, was previously convicted by a jury of bank fraud, four counts of wire fraud, three counts of money laundering, and two counts of tax evasion, after a one-week trial before U.S. District Judge William J. Martini. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial: From at least 2000 through September 2011, Febles worked as an executive assistant for Citibank in New York City. Her duties included assisting Salomon with his finances. As part of her employment, Febles had exclusive control over Mr. Salomon’s bank accounts and routinely prepared and negotiated checks on his behalf. Febles was terminated by Citibank in September 2011.Between 2007 and September 2011, at least $1.3 million of Mr. Salomon’s funds went from his bank accounts directly into Febles’ 21 bank accounts, including two accounts that she maintained for her minor son. A review of hundreds of checks written by Febles revealed that the checks had been altered by Febles – after they had been signed by Mr. Salomon – to add additional sums of money. Once issued, Febles negotiated many of these checks, in cash, for the altered amount.
At the same time that more than $900,000 in checks and almost $400,000 cash went from Mr. Salomon’s bank accounts into Febles’ accounts, Febles spent hundreds of thousands of dollars on luxury purchases. These included, in just a five-month period in 2011, $52,720 in cash for a 2011 Range Rover; $34,650 in cash for a Mercedes-Benz; $43,200 in cash for one year’s rent of a three-bedroom home in Clifton, N.J.; and more than $45,000 in cash for six months’ rent on two apartments in Palisades Park, N.J. Febles’ purchases also included more than $115,000 on vacation and travel expenses; $56,000 rent on a four-bedroom home in Mahwah, N.J.; more than $20,000 on other automobile payments; and more than $20,000 on personal expenses, including entertainment, meals, travel, and clothing. During this time, Febles never earned more than $50,000 per year in take-home pay from Citibank.
In addition to the evidence of Mr. Salomon’s money going into Febles’ bank accounts and the evidence of Febles’ expenditures, the evidence at trial also established that Febles transferred hundreds of thousands of dollars that she stole from Mr. Salomon from her accounts into custodial bank accounts that she maintained for her minor son. The jury found that Febles transferred these funds to her son in order to conceal her bank and wire frauds.
In the tax years 2009 and 2010, Febles failed to disclose to the IRS any of the money that she stole from Mr. Salomon. In those two years, she claimed tax refunds of $14,839 and $9,293, respectively. Had Febles disclosed the money that she stole from Mr. Salomon on her tax returns in 2009 and 2010, she would have owed almost $70,000 to the United States in 2009 and more than $200,000 to the United States in 2010.
In addition to the prison term, Judge Martini sentenced Febles to three years of supervised release and ordered forfeiture and restitution of $1,154,911. She was also ordered to surrender $38,000 in cash she had put toward her bail.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen in Newark, and special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorneys Aaron Mendelsohn of the Economic Crimes Unit and Evan Weitz of the Asset Forfeiture and Money Laundering Unit of the U.S. Attorney’s Office in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
13-316Defense counsel: Edward J. McQuat and Richard Langweber, New York
Foreign National Pleads Guilty to Role in Cocaine ConspiracyRead the Press Release
Victor Manuel Diaz-Lucas, also known as “Victor Raul Cruz-Gutierres,” 31, a citizen of Mexico who most recently resided in Berkeley, MO, entered a plea of guilty on July 25, 2013, to Conspiracy to Distribute and Possess With the Intent to Distribute Cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Diaz-Lucas had been charged on August 22, 2012, in an eleven-count indictment charging a total of ten individuals with being members of a large drug trafficking organization. Diaz-Lucas, who was only charged in Count 1, is currently scheduled to be sentenced at 10:00 a.m. on November 8, 2013, at which time he faces a potential maximum sentence of ten years to life in prison, followed by a term of supervised release of not less than five years, a $10,000,000 fine, and a $100 special assessment. Diaz-Lucas also agreed to forfeit $1,500,000 to the United States. Diaz-Lucas admitted that he is a citizen of Mexico who is in the United States illegally. He agreed to the entry of a Judicial Order of Removal, which will require him to be deported following the service of his sentence.
According to the Stipulation of Facts which was filed with the Court at the time of the plea, the organization charged in the Indictment was responsible for importing cocaine from Mexico into the United States, where it was taken to Salt Lake City, Utah. From Salt Lake City, the cocaine was transported by members of the conspiracy to the St. Louis Metropolitan area where it was distributed by various members of the organization, including some who operated within the Southern District of Illinois. Proceeds for the sales of the cocaine were then transported back to the leaders of the conspiracy in Salt Lake City.
Of the nine individuals named in the indictment with Diaz-Lucas, six others have entered pleas of guilty; one other has been arrested and are awaiting trial; two are fugitives. The co-defendant not yet convicted is presumed innocent because an indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
Evidence in support of the indictment in this case was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Participating agencies include the Drug Enforcement Administration (DEA), Internal Revenue Service, Criminal Investigations, the U.S. Immigration and Customs Enforcement Office of Homeland Security Investigations (ICE HSI), U.S. Marshal Service, the Granite City Police Department, Fairview Heights Police Department, the Collinsville Police Department, the St. Louis Metropolitan Police Department, the St. Louis County (Missouri) Police Department, the St. Charles County (Missouri) Sheriff's Department, and the Nebraska State Patrol. This case is assigned to Assistant United States Attorney Randy G. Massey for prosecution.
Florida Woman Sentenced for Running Stolen Identity Tax Fraud SchemeRead the Press Release
St. Louis, MO – TANIA HENDERSON of Wesley Chapel, Florida, was sentenced to 144 months in prison for her role in leading a stolen identity tax fraud scheme during 2012. In addition to the term of imprisonment, Henderson was ordered to repay the IRS $835,883 in restitution. She appeared in federal court in St. Louis before United States District Judge Carol E. Jackson.
According to Henderson's plea agreement and other court documents, Henderson stole the identities of more than 400 individuals, many of whom were deceased, and filed fraudulent tax returns using their names and social security account numbers. Henderson pled guilty on April 29, 2013, to one count of theft of government funds and four counts of aggravated identity theft.
Between August and November 2012, Henderson filed 236 fraudulent tax returns from her home in Florida. Using a network of family and friends, she would collect refund checks or prepaid debit cards for the refund amounts and liquidate the proceeds of her scheme. Three of this network, Betty Kirkendoll, Patrina Taylor and Jason Bibbs, have already been prosecuted and sentenced."Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. Today's sentence should serve as a strong warning to those who are considering similar conduct," said Sybil Smith, Special Agent in Charge of IRS-Criminal Investigation.
Although Henderson filed tax returns calling for more than $1.8 million dollars, the IRS was able to intercept nearly $1,000,000 in refunds before they came into Henderson's control.
Henderson’s husband, Dwayne Denard Johnson, also of Wesley Chapel, Florida, has been indicted for theft of government funds and aggravated identity theft and awaits trial in the Eastern District of Missouri. As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Mr. Johnson is presumed to be innocent unless and until proven guilty.
This case was investigated by Internal Revenue Service- Criminal Investigation. Assistant United States Attorney Tom Albus handled the case for the U.S. Attorney’s Office.Five Arrested for Bank Robberies on the Treasure CoastRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, John A. Bolduc, Chief, Port St. Lucie Police Department, Kenneth Mascara, St. Lucie County Sheriff’s Office, J. Michelle Morris, Chief, Sebastian Police Department, Deryl Loar, Sheriff, Indian River Sheriff’s Office, and Sean Baldwin, Chief, Ft. Pierce Police Department, announce the arrest of Anthony Isaac Johnson, 24, of West Palm Beach, Allan Demetrius Bradford, 22, of West Palm Beach, Ivory Lee Robinson, III, 22, of West Palm Beach, Tomaleesha Jeffie Laqua McKeliver, 22, of Ft. Pierce, and Paul Edward Moore, 25, of Green Acres. The five defendants made their initial appearance today before U.S. Magistrate Judge Frank J. Lynch, Jr. in Ft. Pierce and were detained pending trial. A pre-trial detention was set for Friday, August 2, 2013.
The criminal complaint charges the five defendants with violating Title 18, United States Code, Section 1951, conspiracy to obstruct, delay, or affect commerce or the movement of any article or commodity in commerce by robbery (Hobbs Act); and Title 18, United States Code, Sections 924(o) and 924(c), conspiracy to use and carry a firearm during and in relation to a crime of violence. If convicted of the Hobbs Act robbery conspiracy, the defendants face a possible maximum statutory sentence of 20 years in prison. If convicted of the conspiracy to use and carry a firearm during and in relation to a crime of violence, the defendants face a mandatory minimum of seven years, and a possible maximum sentence of life, in prison, consecutive to any other sentence imposed.
According to the criminal complaint, on July 8, 2013, at approximately 9:28 a.m., PNC Bank, located at 4156 Okeechobee Road, Fort Pierce, Florida, was robbed by three black males wearing white clothing and white cloth masks. At least one of the males was armed with a hand gun. All three subjects then fled in a silver mini-van, which was subsequently recovered. Shortly thereafter, law enforcement attempted to conduct a traffic stop of a white Chrysler sedan, operated by a female driver, but the driver failed to pull over and a high speed pursuit ensued. This vehicle was soon disabled near the intersection of Port St. Lucie Boulevard and Aster Road in Port St. Lucie, Florida. Upon execution of a state search warrant on the white Chrysler sedan, a large amount of currency, a semi-automatic handgun, several cellular phones, cloth gloves, and numerous articles of clothing, consistent with what the bank robbers wore during the robbery of the PNC Bank in Fort Pierce, Florida, was recovered. The driver Tomaleesha Jeffie Laqua McKeliver, and the three passengers, Anthony Isaac Johnson, Allan Demetrius Bradford, and Ivory Lee Robinson, III were arrested and transported to the Port St. Lucie Police Department.
The criminal complaint also states that on July 8, 2013, at approximately 9:14 a.m., the PNC Bank, located at 5493 NW St. James Drive, Port St. Lucie, Florida, was robbed by three black males wearing head coverings. At least one of the males was armed with a hand gun. Shortly after two of the males fled the PNC Bank, the third became momentarily trapped inside. He later fled the PNC Bank on foot removing clothing as he fled. A bag containing money was recovered near the PNC Bank, and Paul Edward Moore was arrested nearby, and transported to the Port St. Lucie Police Department.
Mr. Ferrer commended the investigative efforts of the FBI, Port St. Lucie Police Department, St. Lucie County Sheriff’s Office, the Sebastian Police Department and the Ft. Pierce Police Department for their work on this case. The case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
A criminal complaint is only an accusation and a defendant is presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Federal Judge Finds Tuscaloosa County Man Guilty of Sexual Exploitation of A Child and Possessing Child PornographyRead the Press Release
TUSCALOOSA – A federal judge today found a Tuscaloosa County man guilty of sexually exploiting a child and possessing child pornography, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Richard D. Schwein Jr. and Tuscaloosa County Sheriff Billy Sharp.
U.S. District Judge L. Scott Coogler found MURRY MALONE BAILEY, 63, guilty on four counts of sexual exploitation of a child and one count of possessing child pornography. The case was tried without a jury before Judge Coogler at the request of the defense.
Evidence at trial showed that on four occasions Bailey induced the child victim, who was 15 years old, to engage in sexually explicit conduct so he could produce video images. For example, the child victim testified about how Bailey coerced and induced her into performing the sexual conduct in a specific room of his home, and the evidence showed how the defendant mounted a camera to record that conduct. Other evidence showed Bailey making sexually explicit comments about what sexual acts he intended to do to the child victim.
No sentencing date has been set.
The maximum penalty for sexually exploiting a child is 30 years in prison and a $250,000 fine, for each count, and carries a statutory minimum penalty of 15 years in prison. The maximum penalty for possessing child pornography is 10 years in prison and a $250,000 fine.
The Tuscaloosa Sheriff’s Office, the Tuscaloosa Police Department, and the FBI investigated the case. Assistant U.S. Attorneys Daniel Fortune and Amanda Wick prosecuted the case.
False Claims Act Judgment Entered Against Washington, DC, Health Care Provider for More Than $17 MillionRead the Press Release
The U.S. District Court for the District of Columbia has entered judgment for more than $17 million against Dr. Ishtiaq Malik and his two companies, Ishtiaq Malik M.D., P.C. and Advanced Nuclear Diagnostics, for submitting false nuclear cardiology claims to federal and state health care programs, the Justice Department announced today. Ishtiaq Malik, a nuclear cardiologist, has practiced in the District of Columbia metropolitan area since 2002.
“Physicians who participate in government health care programs must bill for their services accurately and honestly,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division. “The Department of Justice is committed to pursuing those physicians who seek financial gain at the expense of taxpayer-funded programs.”
The government’s allegations focused on Dr. Malik’s inappropriate claims for myocardial perfusion studies, commonly referred to as nuclear stress tests. These diagnostic imaging studies determine whether a patient has heart disease due to inadequate blood flow to the heart muscles. The test is usually performed in two separate phases: stress and rest. The two phases, which can be conducted on the same day or separate days, must be coded and submitted as one test. The government alleged that, contrary to these requirements, Dr. Malik and his companies double-billed for multi-day nuclear stress test studies.
“This doctor fraudulently diverted critical resources from government health care programs, contributing to the rising cost of health care for all Americans,” said Ronald C. Machen Jr., U.S. Attorney for the District of Columbia. “This lawsuit was designed to hold the doctor to account for bilking the taxpayer. We will do everything in our power to obtain every cent of the $17 million this doctor now owes the American people.”
The government alleged that Dr. Malik submitted false claims to Medicare, District of Columbia Medicaid, Maryland Medicaid, TRICARE and the Federal Employees Health Benefits Plan. In addition, the government alleged that Dr. Malik and his companies billed under codes that did not apply to the nuclear stress test studies he administered and billed for services already included in the payment for nuclear stress test codes, such as intravenous injections, drug infusions, 3D rendering and drug administration. He and his companies also allegedly billed for services not performed.
“Federal employees deserve health care providers who meet the highest standards of ethical and professional behavior,” said Patrick E. McFarland, Inspector General of the U.S. Office of Personnel Management. “This judgment reminds health care providers that they must observe those standards and reflects the commitment of federal law enforcement organizations to pursue improper and illegal conduct that places the health care system at risk.”
“Dr. Malik fraudulently charged for his services and taxpayers deserve protection from such scams,” said Daniel R. Levinson, Inspector General of the U.S. Department of Health and Human Services. “OIG agents, working with other law enforcement agencies, conducted interviews, gathered records and analyzed data to conclude a successful investigation and bring the doctor to justice.”
The government filed suit against Dr. Malik and his two companies under the False Claims Act, which allows the government to recover three times its damages, plus penalties, from those who submit false claims for federal funds. The state of Maryland and the District of Columbia subsequently joined the lawsuit under their respective state false claims acts.
This civil lawsuit illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $14.7 billion through False Claims Act cases, with more than $10.7 billion of that amount recovered in cases involving fraud against federal health care programs.
This investigation was a cooperative effort among the Commercial Litigation Branch, Civil Division, Department of Justice; the U. S. Attorney’s Office for the District of Columbia; the Maryland Attorney General’s Office; and the Attorney General’s Office for the District of Columbia. The Department of Health and Human Services’ Office of the Inspector General and the Office of Personnel Management’s Office of the Inspector General assisted in the investigation. The lawsuit is United States of America et al. v. Malik et al., No. 1:12-01234-RLW (D.D.C.).
Elmira Woman Indicted for Embezzling Workers Pension and Health Care MoneyRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Rochester has returned a three count indictment charging Linda Riner, 62, of Elmira, N.Y., with embezzling money from Local Laborer’s 1358 employee pension and welfare benefit funds and lying to federal investigators about this matter. Each charge carries a maximum sentence of five years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Riner was the Funds Administrator of the Local Laborer’s 1358 employee benefit plans, and owed those plans a fiduciary duty. Instead of honoring that duty, the defendant took advantage of her position to pay herself and her staff thousands of dollars in “Christmas bonuses” without authorization. In addition, when interviewed by Special Agents with the Federal Bureau of Investigation and Department of Labor about these bonuses, Riner sought to mislead investigators by claiming that the payments had been approved. In total, the defendant stole approximately $9,000 from the plans.
The indictment is the result of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel and the Department of Labor, under the direction of Special Agent in Charge Robert Lapina.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Drug and Gun Charges FiledRead the Press Release
Nicholas Suozzo, 32, of Philadelphia, PA, was charged by Indictment with nine counts, including: possession of unregistered firearms, which included machine guns and explosive devices; distribution and possession with intent to distribute marijuana within a school zone; and possession of firearms in furtherance of a drug trafficking crime, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of life imprisonment, a mandatory consecutive 5 years imprisonment, at least 4 years up to lifetime supervised release, a $770,000 fine, and $600 special assessment.
The case was investigated by the Philadelphia Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and is being prosecuted by Special Assistant United States Attorney Joseph Whitehead, Jr.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525District Man Pleads Guilty to Second-Degree Murder While Armed in 2011 Strangling at Northeast Washington Park-Victim Was Stabbed, Choked and Robbed in Late-Night Attack-Read the Press Release
WASHINGTON – Mark Coates, 28, of Washington, D.C., pled guilty today to a charge of second-degree murder while armed for the December 2011 slaying of a man at a park in Northeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Coates pled guilty in the Superior Court of the District of Columbia. The Honorable Herbert B. Dixon, Jr. scheduled sentencing for Sept. 23, 2013.
According to the government’s evidence, between 11 p.m. on Friday, Dec. 30, 2011, and 1 a.m. on Saturday, Dec. 31, 2011, Coates and an accomplice forced the victim, Leroy Studevant, 56, into the Marvin Gaye Park in the 4200 block of Hunt Place NE, where they punched and kicked him.
During the assault, Mr. Studevant managed to escape, and he ran across the park. However, Coates and the accomplice chased Mr. Studevant through the park, until Coates ultimately cut off Mr. Studevant’s flight path. Using a knife, Coates and his accomplice then stabbed Mr. Studevant. After forcing Mr. Studevant to the ground, Coates and his accomplice kicked him, and Coates was able to unhook and remove Mr. Studevant’s belt from around his waist. The belt was placed around Mr. Studevant’s neck as a noose, and he was choked with the belt until he no longer resisted. During the altercation, a wallet and cell phone were removed from Mr. Studevant’s pockets. Coates and his accomplice split the money in the wallet.
An autopsy determined that Mr. Studevant died as a result of the strangling and assault in the park. The reason for the attack was because the victim would not share his cigarettes.
In announcing the plea, U.S. Attorney Machen praised the work of the detectives, officers, and crime scene technicians who investigated the case for the Metropolitan Police Department. He also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Kendra Johnson, Ethel Nobel, Marian Russell, and Sandra Lane; Lead Paralegal Specialist Sharon Newman; Victim/Witness Advocate Tamara Ince; Victim Witness Security Specialist Katina Adams-Washington; Investigator Nelson Rhone; and Intelligence Specialists Lawrence Grasso, Zachary McMenamin, Shannon Alexis, and Sharon Johnson. Finally, U.S. Attorney Machen recognized the efforts of Assistant U.S. Attorney Kimberley Nielsen and Assistant U.S. Attorney Robert Feitel, who investigated and prosecuted the case.
13-267Department of Justice Announces Agreement with Liechtenstein Bank to Pay $23.8 Million to Resolve Criminal Tax InvestigationRead the Press Release
Kathryn Keneally, the Assistant Attorney General for the Tax Division of the Department of Justice, Preet Bharara, the U.S. Attorney for the Southern District of New York and Richard Weber, the Chief of the Internal Revenue Service, Criminal Investigation (IRS-CI), announced today that Liechtensteinische Landesbank AG, a bank based in Vaduz, Liechtenstein (LLB-Vaduz), has agreed to pay more than $23.8 million to the United States and entered into a non-prosecution agreement (NPA) with the U.S. Attorney’s Office for the Southern District of New York. The NPA provides that LLB-Vaduz will not be criminally prosecuted for opening and maintaining undeclared bank accounts for U.S. taxpayers from 2001 through 2011, when LLB-Vaduz assisted a significant number of U.S. taxpayers in evading their U.S. tax obligations, filing false federal tax returns with the IRS and otherwise hiding accounts held at LLB-Vaduz from the IRS. The NPA requires LLB-Vaduz to forfeit $16,316,000, representing the total gross revenues that it earned in maintaining these undeclared accounts, and to pay $7,525,542 in restitution to the IRS, representing the approximate unpaid taxes arising from the tax evasion by LLB-Vaduz’s clients. The NPA applies only to LLB-Vaduz and not to any of its subsidiaries or any individuals. LLB-Vaduz has decided to close its wholly-owned Swiss subsidiary, Liechtensteinische Landesbank (Switzerland) Ltd. and has also decided to sell another wholly-owned subsidiary, Jura Trust AG.
Assistant Attorney General Kathryn Keneally stated “this non-prosecution agreement addresses the past wrongful conduct of LLB-Vaduz in allowing U.S. taxpayers to evade their legal obligations through the use of undisclosed Liechtenstein bank accounts, while also acknowledging the extraordinary efforts of the bank in bringing about significant changes in Liechtenstein law. As a result of new Liechtenstein legislation, U.S. taxpayers who thought that they had obtained the benefit of Liechtenstein’s tax secrecy laws have learned that their bank files were turned over on the request of the Department of Justice.”
“With this agreement, one of Liechtenstein’s most important banks has put an era behind it. Today’s agreement with Liechtensteinische Landesbank AG reflects the unprecedented nature of the bank’s cooperation, and serves as another reminder for U.S. tax cheats who mistakenly believe that their offshore bank will never turn over their account files to U.S. authorities. To them we say, you can hide, but not forever”, said U.S. Attorney Preet Bharara.
“In 2008, Liechtensteinische Landesbank AG began requiring all U.S. taxpayers with accounts at LLB-Vaduz to declare their income. In addition, Liechtenstein’s Parliament amended their national law on tax matters to make easier the identification to the United States of non-compliant taxpayers. Today’s action sends a strong message to those Americans who hide their true income from the IRS. It's time to come clean and pay your fair share of taxes like law-abiding citizens do every day”, said IRS-CI Chief Weber.
The NPA recognizes that, in 2008, before the IRS and the U.S. Attorney’s Office began the investigation, LLB-Vaduz voluntarily implemented a series of remedial measures to stop assisting undeclared U.S. taxpayers in evading federal income taxes. The NPA further recognizes LLB-Vaduz’s extraordinary cooperation in the form of its support and assistance in 2012 to obtain a change in law by the Liechtenstein Parliament that permitted the Department of Justice to request and obtain the bank files of non-compliant U.S. taxpayers from Liechtenstein without having to identify the taxpayers by name (the “2012 Law”).
Pursuant to such a request by the Department of Justice, Liechtenstein transferred to the Department of Justice more than 200 files of U.S. taxpayers who held undeclared accounts at LLB-Vaduz, directly or through sham corporations, foundations or trusts (“structures”). In addition, pursuant to the 2012 Law, the Department of Justice has submitted a second request to the Liechtenstein government for records relating to various Liechtenstein firms that provided trust administration and other fiduciary services that enabled U.S. taxpayers to hold undeclared accounts through structures at banks in Liechtenstein, Switzerland and elsewhere.
As part of the NPA, LLB-Vaduz admitted various facts concerning its wrongful conduct and the remedial measures that it took to cease that conduct. Specifically, LLB-Vaduz admitted that it knew certain U.S. taxpayers were maintaining undeclared accounts at LLB-Vaduz in order to evade their U.S. tax obligations, in violation of U.S. law. In addition, LLB-Vaduz admitted that it knew of the high probability that other U.S. taxpayers who held undeclared accounts did so for the same unlawful purpose because significant numbers of U.S. taxpayers employed structures to hold their accounts, instructed LLB-Vaduz to use code names or numbers to refer to them on account statements and other bank documents, instructed LLB-Vaduz not to mail such documents to them in the United States, and instructed LLB-Vaduz not to disclose their identity to the IRS, among other things. At the end of 2006, LLB-Vaduz held more than $340 million of undeclared assets on behalf of U.S. taxpayers in more than 900 accounts.
As part of the NPA, LLB-Vaduz has agreed to forfeit $16,316,000 to the United States, representing LLB-Vaduz’s total gross revenues from services that it provided to undeclared U.S. taxpayers from 2001 through 2011. In connection with this forfeiture, LLB-Vaduz has agreed not to contest a civil forfeiture action filed by the United States. That action was filed on July 30, 2013, in U.S. District Court for the Southern District of New York and assigned to U.S. District Judge Katherine P. Failla.
The U.S. Attorney’s Office entered into the NPA based on factors including:
· LLB-Vaduz’s voluntary implementation of various remedial measures beginning in June 2008, before the investigation of its conduct began;
· LLB-Vaduz’s voluntary cooperation with this Office and the government of Liechtenstein after becoming aware of this Office’s investigation;
· LLB-Vaduz’s willingness to continue to cooperate with this Office and the IRS to the extent permitted by applicable law;
· LLB-Vaduz’s substantial support for the 2012 Law, which has already permitted the production to the Department of Justice of more than 200 account files of U.S. taxpayers who held undeclared accounts at LLB-Vaduz;
· LLB-Vaduz’s representation, based on an investigation by external counsel, that the misconduct under investigation did not, and does not, extend beyond that described in the statement of facts;
The NPA requires LLB-Vaduz to continue to cooperate with the United States for at least three years from the date of the agreement. The NPA applies only to LLB-Vaduz and does not apply to any of its subsidiaries, including its Swiss subsidiary,or to any individuals. In the event that LLB-Vaduz violates the NPA, the U.S. Attorney’s Office may prosecute LLB-Vaduz.
U.S. Attorney Bharara thanked the IRS for its outstanding work in the investigation of this matter and the Tax Division of the Department of Justice for its assistance in the investigation. Bharara also thanked the Liechtenstein Tax Authority and the Liechtenstein Public Prosecutor’s Office for their assistance in this matter.
This investigation is being overseen by the U.S. Attorney’s Office’s Complex Frauds Unit. Assistant U.S. Attorneys David B. Massey, Daniel W. Levy and Jason H. Cowley are in charge of the matter.
Related Materials:
United States v. 15,899,000 in United States Currency
Verified Complaint (PDF)
Agreement Letter (PDF)
Council Bluffs, Iowa Resident Sentenced to Four Months in Prison for Interstate Transportation of Stolen PropertyRead the Press Release
COUNCIL BLUFFS, IA - On July 30, 2013, Joseph Patrick Connor, a 40 year-old resident of Council Bluffs, Iowa, was sentenced by United States District Court Judge John Jarvey to four months in prison, followed by three years of supervised release, for his role in transporting stolen truck repair equipment from Omaha, Nebraska, to Council Bluffs, Iowa. Judge Jarvey also ordered Connor to pay restitution in the amount of $30,000.
On March 18, 2013, Connor pled guilty to the charge of interstate transportation of stolen property. The charge was the result of an investigation conducted by several law enforcement agencies into the theft of tools from Hatcher Mobile Services of Omaha, Nebraska, taken during a burglary committed on March 20, 2012. Many of the tools taken during the burglary were recovered from the back of a straight truck found in Council Bluffs, Iowa, by the Iowa State Patrol. The value of the tools taken during the burglary was estimated to be over $100,000.
The investigation was conducted by the Omaha Police Department, Iowa State Patrol, the Pottawattamie County Attorney’s Office, and the Federal Bureau of Investigation. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Convicted Santa Cruz Sex Offender Pleads Guilty to Possessing Child PornographyRead the Press Release
SAN JOSE – Steven Hibbett pleaded guilty in federal court in San Jose yesterday to possession of child pornography, United States Attorney Melinda Haag announced.
In pleading guilty, Hibbett, 59, of Santa Cruz, California, admitted that he downloaded child pornography from the Internet onto a laptop computer that law enforcement seized from a Santa Cruz storage locker. Hibbett also admitted that he knowingly possessed over 600 images of child pornography, including images of prepubescent minors and images portraying sadistic or masochistic conduct. Hibbett admitted that he possessed these images of child pornography while on state probation for a prior 2009 California state felony conviction for possessing child pornography.
Hibbett was originally charged by complaint and has been in custody since his initial appearance in federal court on April 18, 2013. On July 25, 2013, Hibbett was charged with an Information alleging possession of child pornography in violation of 18 U.S.C. § 2252(a)(4)(B). Hibbett pleaded guilty to the sole count of the Information and agreed to receive a 10 year prison sentence followed by 5 years of supervised release.
Hibbett’s sentencing is scheduled for October 21, 2013, at 1:30 p.m. before The Honorable Edward J. Davila, U.S. District Court Judge, in San Jose. Since Hibbett has a prior conviction for a child pornography offense, he faces a mandatory minimum sentence of 10 years imprisonment and a maximum statutory penalty of 20 years imprisonment, a $250,000 fine, restitution, and registration as a sex offender. However, any sentence following conviction will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Joseph Fazioli is prosecuting the case with the assistance of Laurie Worthen. The prosecution is a result of an investigation by the Federal Bureau of Investigation and the Santa Cruz Police Department.
Convicted Felon Sentenced for Illegal Re-entry After DeportationRead the Press Release
Gulfport, Miss. – Juan Carlos Rocha-Aguilar, 33, a citizen of Mexico, was sentenced today by U. S. District Judge Sul Ozerden to serve 19 months in federal prison followed by three years of supervised release for illegal re-entry of a deported alien after being convicted of a felony, U.S. Attorney Gregory K. Davis announced.
In February, 2013, Juan Carlos Rocha-Aguilar a/k/a Juan C. Rocha a/k/a Juan Carlos Rocha a/k/a Juan Rocha, was identified by ICE agents as a previously removed alien, having been deported from the United States on Sept. 3, 2005, and on May 31, 2002, with prior felony convictions.
This case was investigated by agents from Homeland Security Investigations and prosecuted by Assistant U. S. Attorney Andrea Jones.
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Collin County, Texas, Man Admits Embezzling Approximately $1 Million from Employer, Hudson Advisors, LLC, in Wire Fraud SchemeRead the Press Release
DALLAS — Steven Chen Yu, 39, of Allen, Texas, appeared before U.S. Magistrate Judge Paul D. Stickney this morning and pleaded guilty to an information charging wire fraud in connection with his attempt to embezzle approximately $1 million from his employer, Hudson Advisors, LLC and its global subsidiaries (Hudson). Yu, who remains on bond, faces a statutory maximum penalty of 20 years in federal prison, a $250,000 fine or twice any pecuniary gain to Yu or loss to the victim(s) and restitution. A sentencing date was not set. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Hudson was a globally integrated asset management company that performed due diligence and analysis, asset management and other support services for Lone Star Funds, a leading private equity firm that invested globally in distressed assets. Hudson employed approximately 800 professionals in the U.S. and had affiliate offices in Europe, Canada and Japan. Hudson’s main offices were in Dallas.
Hudson maintained a private client department that employed several private client managers. It was responsible for providing accounting and bill payment services for Hudson owner J.G. As part of his duties, Yu was authorized by Hudson to access all of J.G.’s personal financial information.
From September 2009 through March 2012, according to documents filed in the case, Yu engaged in several fraudulent acts which enabled him to embezzle substantial funds belonging to J.G. For example, in September – October 2009, Yu fraudulently re-submitted duplicate invoices for legitimate repair work that had been done on J.G.’s boat, knowing that the invoices had already been paid. Yu substituted his own personal bank account information, and in this manner, was able to fraudulently divert and embezzle $150,572 from J.G.’s accounts.
In another scheme, and in a similar manner, on December 1, 2009, Yu defrauded J.G. by also using duplicate invoices for landscaping work that had previously been done on J.G.’s personal residence in Massachusetts. Yu was able to fraudulently divert and embezzle more than $69,000 in funds from one of J.G.’s trust accounts for duplicate payment on the landscaping work. However, later in December 2009, Yu fraudulently caused the more than $69,000 to be deposited back into the account from which they had been diverted prior to Hudson becoming aware of any of Yu’s unlawful activities in connection with the fraudulent diversion or embezzlement of funds.
As part of a larger scheme, beginning in 2009 and continuing through March 2012, Yu fraudulently used and diverted J.G.’s funds which Yu used to make advance “estimated tax payments” for Yu’s benefit in connection with his own future state income taxes due in Massachusetts. When Yu filed his personal income tax returns with Massachusetts, he claimed that he owed no taxes and requested Massachusetts pay him a complete refund of all the estimated tax payments he had made to the state with funds he had stolen from J.G.
During the period from about 2009 through March 2012, as part of his scheme to defraud, Yu attempted to steal and embezzle a total of approximately $1,292,000 from Hudson owner J.G.
The investigation was conducted by the FBI. Assistant U.S. Attorney David L. Jarvis is in charge of the prosecution.
Charleston Pill Dealer Who Pawned Pistol Pleads Guilty to Federal ChargeRead the Press Release
CHARLESTON – A Charleston pill dealer who illegally possessed a firearm in January 2013 pleaded guilty today to a federal charge, announced U.S. Attorney Booth Goodwin. Anthony Dawson, Jr., 30, entered a guilty plea to being a felon in possession of a firearm before U.S. District Judge John T. Copenhaver, Jr. On January 3, Dawson possessed a 9-millimeter pistol and later pawned the firearm near Dunbar, W.Va., in exchange for $400.
Dawson was previously convicted of conspiracy to deliver oxycodone in June 2009 in the Circuit Court of Kanawha County. The defendant did not have his rights to possess a firearm restored.
Dawson faces up to 10 years in prison and a $250,000 fine when he is sentenced on October 29, 2013.
The Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Erik S. Goes is in charge of the prosecution.This case is being prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
This case is also being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Central Nebraska Man Sentenced to 60 Months Imprisonment for Distributing Methamphetamine in Grand Island, NebraskaRead the Press Release
United States Attorney Deborah R. Gilg announced that yesterday the Honorable John M. Gerrard, U.S. District Court Judge, sentenced Luis Jordan, 36, to 60 months imprisonment, to be followed by 4 years of supervised release, and he was ordered to pay a $100 special assessment, following his conviction for distribution of methamphetamine.
On November 4, 2011, and November 8, 2011, Jordan sold a total of 20 grams (about ¾ of an ounce) of 95% pure methamphetamine to a cooperating witness who was working with law enforcement in Grand Island. On October 20, 2012, Jordan set up a deal to sell 5 ounces of methamphetamine to a cooperating witness in Duncan, Nebraska. As Jordan arrived at the meeting location, he was stopped by law enforcement. Officers located a stuffed animal in the cargo area of his Chevrolet Tahoe that contained a Crown Royal bag and inside the bag was the methamphetamine.
The Central Nebraska Drug and Safe Streets Task Force in Grand Island and Specialized Narcotics Abuse Reduction Effort (SNARE) Drug Task Force in Columbus was responsible for the investigation of this case.
Caregiver Sentenced to Prison for TheftRead the Press Release
EUGENE, Ore. – Carel June Cody, 47, of Cottage Grove, was sentenced to 57 months in prison for her theft of Social Security benefits that spanned more than 16 years. In addition to prison, Cody was ordered to pay restitution in the amount of $203,528. Cody has also agreed to relinquish her federal Thrift Savings Plan retirement fund, worth approximately $36,000, to the government as well as her Cottage Grove residence.
According to Cody’s admissions and court records, Cody’s scheme to defraud began in 1996 when Cody concealed the death of John Arnold, who had been in her care, and buried his body on rural private property. Each month thereafter when Arnold’s Social Security retirement benefits were electronically deposited to his bank account, Cody forged Arnold’s name on checks payable to herself. The scheme was discovered when a relative of Cody’s husband, Ernest “Bud” Cook, found a letter written by Cook in 1996 describing the death of Arnold and the theft by Cody.
Calling Cody’s actions “an abuse of trust,” U.S. District Court Chief Judge Ann Aiken stated, “You became a person everyone is afraid of. We never will know what Mr. Arnold’s final days were like. I don’t know if you can ever get enough therapy to correct what you did.”
“The relentless team effort of the Social Security Administration, Office of Inspector General, and the U.S. Attorney’s Office is making a substantial impact on Social Security fraud in Oregon,” said United States Attorney Amanda Marshall. “These are important cases because when we hold these fraudsters accountable, we recoup stolen funds for the Social Security program and deter others from committing these crimes.”
Cook was sentenced to five years of probation for his receipt of stolen government property and ordered to perform 100 hours of community service for each year he is on supervision.
The case was investigated by the Social Security Administration Office of Inspector General, Office of Investigations, the Douglas County Sheriff’s Office, and the Roseburg Police Department, and was prosecuted by Special Assistant U.S. Attorney Helen L. Cooper, as part of a partnership venture between the Social Security Administration Office of General Counsel and the United States Attorney’s Office.
Cahokia Man Pleads Guilty to Firearm OffenseRead the Press Release
On July 29, 2013, Renaldo D. Gordon, 30, of Cahokia, IL, pled guilty in United States Federal District Court, in East St. Louis, IL, to unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Gordon is scheduled for sentencing on November 1, 2013, at which time he faces a maximum potential sentence of 10 years in prison and a fine of up to $250,000, not more than 3 years supervised release after his prison term, and a mandatory special assessment of $100.
Facts brought out in court stem from a September 7, 2012, incident when two police officers responded to a report of shots fired on a street block in Centreville, IL. Officers canvassed streets near the area, observing three males in the vicinity. One of the men, Gordon, fit the description of the suspect. After being ordered to place his hands above his head, a firearm was noticed protruding from his right hip. Gordon denied firing the gun, but admitted ownership of the firearm found on him. Gordon had been previously convicted in St. Clair County, IL, on a weapons charge.
This case was investigated by the Centreville Illinois Police Department and is assigned to Special Assistant United States Attorney Neal C. Hong for prosecution.
Brooklyn Clinic Employee Sentenced to Eight Years in Prison in Connection with $77 Million Medicare Fraud SchemeRead the Press Release
Yuri Khandrius, 50, of Brooklyn, N.Y., was sentenced today to eight years in prison for his role in a $77 million Medicare fraud scheme.
In addition to the prison term, U.S. District Judge Nina Gershon of the Eastern District of New York sentenced Khandrius to three years of supervised release with a concurrent exclusion from Medicare, Medicaid and all federal and state health programs and an exclusion from any employment that involves handling of any federal or state funds; ordered him to forfeit $446,655; and ordered him to pay restitution in the amount of $10 million.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Loretta E. Lynch of the Eastern District of New York; Assistant Director in Charge George Venizelos of the FBI’s New York Field Office; and Special Agent in Charge Thomas O’Donnell of the U.S. Department of Health and Human Services’s Office of Inspector General (HHS-OIG) made the announcement.
Khandrius pleaded guilty on Dec. 3, 2012, to one count of conspiracy to commit health care fraud, one count of health care fraud and one count of conspiracy to pay kickbacks.
Including Khandrius, 13 individuals have been convicted in this case.According to court documents, from 2005 to 2010, Khandrius was an employee of a clinic in Brooklyn that operated under three corporate names: Bay Medical Care PC, SVS Wellcare Medical PLLC and SZS Medical Care PLLC. According to court documents, the owners, operators and employees of the Bay Medical clinic paid cash kickbacks to Medicare beneficiaries and used the beneficiaries’ names to bill Medicare for more than $77 million in services that were medically unnecessary or never provided. The defendants billed Medicare for a wide variety of fraudulent medical services and procedures, including physician office visits, physical therapy and diagnostic tests.
According to trial testimony, Khandrius, who holds no medical licenses or certifications, impersonated his co-defendant Dr. Gustave Drivas at the clinic. Drivas was the Bay Medical clinic’s “no-show” doctor. Khandrius admitted at his change of plea hearing that he signed prescriptions and medical charts in Drivas’s name and performed medical tests and procedures on patients although he was not licensed to do so. Drivas was convicted by a federal jury on April 8, 2013, of health care fraud conspiracy and health care fraud.
Khandrius’s impersonation of Drivas assisted the conspirators in disguising the use of Drivas’s Medicare billing number to bill more than $20 million in claims for services that were not rendered or medically unnecessary. According to trial testimony, Khandrius also directed a phony allergy testing fraud at the Bay Medical clinic that involved giving patients bottles of tap water instead of allergy medications; wrote prescriptions for co-workers and at least one minor child using Drivas’s prescription pad; and, in response to a written audit from Medicare, falsely filled out medical charts in an attempt to back up the billing and deceive Medicare.
The government’s investigation included the use of a court-ordered audio/video recording device hidden in a room at the clinic where the conspirators paid cash kickbacks to corrupt Medicare beneficiaries. The conspirators were recorded paying approximately $500,000 in cash kickbacks during a period of approximately six weeks from April to June 2010. This room was marked “PRIVATE” and featured a Soviet-era poster of a woman with a finger to her lips and the words “Don’t Gossip” in Russian. The purpose of the kickbacks was to induce the beneficiaries to receive unnecessary medical services or to stay silent when services not provided to the patients were billed to Medicare.
The case was investigated by the FBI and HHS and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. This case is being prosecuted by Trial Attorney Sarah M. Hall of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Shannon Jones of the Eastern District of New York.
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.
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Brooklyn Clinic Employee Sentenced to Eight Years in Prison in Connection with $77 Million Medicare Fraud SchemeRead the Press Release
BROOKLYN, NY – Earlier today, Yuri Khandrius, 50, of Brooklyn, New York, was sentenced to eight years in prison for his role in a $77 million Medicare fraud scheme. In addition to the prison term, U.S. District Judge Nina Gershon of the Eastern District of New York sentenced Khandrius to three years of supervised release with a concurrent exclusion from Medicare, Medicaid and all Federal health programs, ordered him to forfeit $446,655 and ordered him to pay restitution in the amount of $10,000,000. Khandrius’s surrender date is September 16, 2013.
The sentence was announced by U.S. Attorney for the Eastern District of New York Loretta E. Lynch; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Special Agent-in-Charge Thomas O’Donnell of the HHS Office of Inspector General (HHS-OIG).
Khandrius pleaded guilty on December 3, 2012 to one count of conspiracy to commit health care fraud, one count of health care fraud and one count of conspiracy to pay kickbacks. Including Khandrius, 13 individuals were convicted in this case, either through guilty plea or trial conviction.
According to court documents, from 2005 to 2010, Khandrius was an employee of a clinic in Brooklyn that operated under three corporate names: Bay Medical Care PC, SVS Wellcare Medical PLLC and SZS Medical Care PLLC (Bay Medical clinic). According to court documents, the owners, operators and employees of the Bay Medical clinic paid cash kickbacks to Medicare beneficiaries and used the beneficiaries’ names to bill Medicare for more than $77 million in services that were medically unnecessary or never provided. The defendants billed Medicare for a wide variety of fraudulent medical services and procedures, including physician office visits, physical therapy and diagnostic tests.
According to trial testimony, Khandrius, who holds no medical licenses or certifications, impersonated his co-defendant Dr. Gustave Drivas at the clinic. Dr. Drivas was the Bay Medical clinic’s “no-show” doctor. Khandrius admitted at his change of plea hearing that he signed prescriptions and medical charts in Drivas’s name, and performed medical tests and procedures on patients although he was not licensed to do so. Khandrius’s impersonation of Dr. Drivas assisted the conspirators in disguising the use of Drivas’s Medicare billing number to bill more than $20 million in claims for services that were not rendered or medically unnecessary. (Drivas was convicted of health care fraud conspiracy and health care fraud by a jury after a seven-week trial.) According to trial testimony, Khandrius also directed a phony allergy testing fraud at the Bay Medical clinic that involved giving patients bottles of tap water instead of allergy medications, wrote prescriptions for co-workers and at least one minor child using Dr. Drivas’s prescription pad and in response to a written audit from Medicare, falsely filled out medical charts in an attempt to back up the billing and deceive Medicare.
The government’s investigation included the use of a court-ordered audio/video recording device hidden in a room at the clinic, in which the conspirators paid cash kickbacks to corrupt Medicare beneficiaries. The conspirators were recorded paying approximately $500,000 in cash kickbacks during a period of approximately six weeks from April to June 2010. This room was marked “PRIVATE” and featured a Soviet-era poster of a woman with a finger to her lips and the words “Don’t Gossip” in Russian. The purpose of the kickbacks was to induce the beneficiaries to receive unnecessary medical services or to stay silent when services not provided to the patients were billed to Medicare.
This case is being prosecuted by Trial Attorney Sarah M. Hall of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Shannon Jones of the Eastern District of New York. The case was investigated by the FBI and HHS.
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
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.
Boston Man Indicted for Social Security, Passport FraudRead the Press Release
BOSTON – A Boston man was charged today with making false statements in passport applications and illegally receiving disability payments.
Antonio Pulinario Brea, 54, was indicted with theft of government money and two counts of making false statements in passport applications.
The indictment alleges that from 2004 to 2013, Pulinario Brea illegally received more than $60,000 in Social Security disability payments under another person’s identity. It is further alleged that in 2010 and 2011, Pulinario Brea used the alias to apply for United States passports.
The offenses with which Pulinario Brea is charged carry a maximum penalty of up to 10 years in prison, followed by three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the Social Security Administration Office of the Inspector General, Office of Investigations, Boston Office; and Bruce Foucart, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston, made the announcement today. The case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Aurora Man Sentenced to Six Years in Prison for $300,000 Construction SchemeRead the Press Release
An Aurora man was sentenced to more than six years in prison and ordered to pay restitution for crimes related to a scheme of more than $300,000 involving construction projects, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office.
Robert J. Berryhill, 51, previously pleaded guilty to five counts of mail fraud, two counts of wire fraud, and one count each of aggravated identity theft and false personation of an officer or employee of the United States.
U.S. District Judge Sara Lioi sentenced Berryhill to 75 months in prison. She ordered him taken into custody and remanded at the conclusion of the hearing.
Berryhill created a fictitious company as a way to divert money on construction projects for his own personal use, including the restoration of a vintage Corvette sports car he had purchased, according to court documents.
“This defendant abused the trust of his employer, his colleagues and his customers in an effort to enrich himself,” said Dettelbach. “He used public contracts as a way to get his Corvette restored and his pockets lined with hundreds of thousands of dollars.”
“Robert Berryhill created false businesses, false invoices and ultimately pretended to be an FBI employee, all in a desperate attempt to defraud others out of $304,000,” Anthony said. “The FBI remains committed to detecting and stopping those defrauding others.”
Berryhill, previously served as the senior vice president of Carnegie Management and Development Corp. (CMDC) in Westlake, Ohio.
Knoxbi Company, LLC, which was managed by CMDC, won the bid to build an FBI office in Knoxville, Tennessee in August 2007. The company used Blaine Construction Company to serve as the on-site general contractor, according to court documents.
In March 2009, Indy-Fedreau LLC, which was also managed by CMDC, won the bid to construct an FBI building in Indianapolis. The company used Welty Building Company as the general contractor, according to court documents.
At the same time, Berryhill also created a fictitious contractor known as American Excavators Company (AEC) for the purpose of submitting false invoices to divert CMDC monies to his personal use, according to court documents.
From August 2008 through September 2009, Berryhill defrauded CMDC, Knoxbi, Indy-Fedreau, Blaine and Welty to obtain money. He did this by creating false invoices in the name of Ore Enterprises – the Pennsylvania company Berryhill hired to restore his vintage Corvette – and then submitted them to Blaine and Welty. Those companies paid the invoices then passed the cost on to Knoxbi and Indy-Fedreau for final payment, according to court documents.
Berryhill also created false invoices in the name of AEC that he submitted to Blaine and Welty. Those companies paid AEC and then passed the cost of the invoice to Knoxbi and Indy-Fedreau for final payment, according to court documents.
Overall, Berryhill caused an actual loss of at least $304,669. Judge Lioi ordered him to pay that amount in restitution.
Berryhill also falsely pretended to be an FBI employee identified as “W.C.M.” on July 28, 2008, and demanding that Blaine pay an invoice from Ore regarding the construction of an FBI building in Knoxville, according to court documents.
The case resulted from an investigation conducted by Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Robert J. Patton.
Atlanta Man Sentenced for Filing Fraudulent Tax ReturnsRead the Press Release
ATLANTA - Frederick Roberts has been sentenced to serve over seven years in federal prison for filing fraudulent federal and state tax returns and for stealing the identities of his victims.
“Identity thieves who file fraudulent tax returns rob from the public fisc and cause immeasurable damage to the innocent victims whose names were stolen,” said United States Attorney Sally Quillian Yates. “We have a duty to protect the tax dollars paid by hardworking Americans, and we will not stand idly by while criminals like Roberts steal those funds.”
According to United States Attorney Yates, the charges and other information presented in court: Roberts prepared fraudulent federal and state income tax returns using stolen identities. He submitted tax returns in other people’s names seeking large refunds and had the checks sent to an address where he could retrieve the mail. He cashed the refund checks with unscrupulous check cashers, who were willing to accept the checks even though none of them were in Roberts’ name. Roberts sought over $899,000 in refunds between May 2009 and March 2011, and he actually received $866,436.66.
“Identity thieves are becoming more devious, creative, and conniving,” said Veronica Hyman-Pillot, Special Agent in Charge IRS Criminal Investigation. “They steal our identities, steal government money and prey upon our citizens. Be assured that IRS Criminal Investigation, with our law enforcement partners, will continue to be proactive in the investigation of individuals who engage in similar behavior. IRS is extremely grateful for the cooperation and assistance we have received from our partners at the local, state and federal level, especially the United States Secret Service, United States Postal Service and the Georgia Department of Revenue.”
“The United States Secret Service and our law enforcement partners take an aggressive approach towards investigating those who commit identity theft and bank fraud. We will continue to work closely with prosecutors to ensure offenders are put behind bars,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
Roberts, 51, of Atlanta, Ga., was sentenced today by United States District Judge William S. Duffey, Jr., to seven years, three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $866,436.66. Roberts was convicted on these charges on March 8, 2013, after he pleaded guilty.
This case is being investigated by the Internal Revenue Service Criminal Investigation, the United States Secret Service, and the Georgia Department of Revenue Office of Special Investigations.
Assistant United States Attorney Christopher C. Bly 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.
Arizona Man Pleads Guilty to Moving Money and Marijuana Between Ohio, Arizona and MexicoRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Mohamed Keisar, 36, of Phoenix, Arizona, pleaded guilty in U.S. District Court to one count of conspiracy to possess with the intent to distribute and to distribute 100 kilograms or more of marijuana and to one count of unlawfully operating an unlicensed money transmitting business. Keisar faces a minimum mandatory sentence of five years in prison and up to 40 years in prison and a fine of up to $5 million.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS), Robin Shoemaker, Special Agent in Charge, Bureau of Alcohol, Tobacco and Firearms, William Hayes, Acting Special Agent in Charge, Homeland Security Investigations, Columbus Division of Police Chief Kim Jacobs announced the guilty plea entered before U.S. District Judge Edmund A. Sargus, Jr.
According to court documents, a joint investigation determined that between January 2009 and December 2012, Keisar was involved in the transportation, sale, and distribution of marijuana in the Southern District of Ohio. Specifically, the investigation found that Keisar, a truck driver, transported marijuana from California and Arizona, to Columbus, Ohio via semi-tractor trailer. The marijuana, which would be co-mingled with legitimate loads, would then be off-loaded to Keisar’s co-conspirators.
Keisar knowingly operated an unlicensed money transmitting business by physically transporting the money that was derived from the sale of marijuana in Columbus, Ohio back to California and Arizona.
On November 27, 2012 investigators, while conducting surveillance, observed a subject provide Keisar with $939,220 in U.S. Currency that had been derived from the sale of marijuana in Columbus, Ohio. Keisar was to transport the U.S. currency in his semi-tractor trailer from Columbus, Ohio to San Diego, CA and to deliver the funds to the source of supply. IRS agents determined that Keisar has never registered and/or been licensed to operate a money transmitting business by the Department of Treasury.
As part of the plea agreement, Keisar agreed to forfeit $1,070,513.83 in U.S. currency either seized from Keisar’s vehicle or from a co-conspirator on several dates between February 2012 and November 2012
Stewart commended the cooperative investigation conducted by the agents and officers of IRS, ATF, HSI, and the Columbus Division of Police. Stewart also commended Assistant U.S. Attorney David DeVillers who is representing the United States.
# # #Andover Man Convicted for Possessing Child PornographyRead the Press Release
BOSTON – An Andover man was convicted today for possessing child pornography.
William S. Thomas, 65, pleaded guilty before U.S. District Judge Patti B. Saris to possession of child pornography.
In October 2010, the United States Postal Service and Canadian officials began an investigation into a movie production company based out of Toronto which operated a website that offered DVDs and streaming videos for sale. The majority of these films involved young prepubescent males. In May 2011, officials executed a search warrant and seized thousands of videos, DVDs, photos, computers, business records and shipping labels. Law enforcement determined that these films were being shipped to customers worldwide, including hundreds of individuals residing in the United States. During a search of these records, officials determined that William S. Thomas of Andover was a customer and had purchased materials between 2005 and 2011.
In September 2012, a number of these items were seized from Thomas’ home following the execution of a federal search warrant. The materials seized, consisting of DVDs and photographs, contained video and photographs of prepubescent males engaged in sexually explicit conduct.
Sentencing is scheduled for Oct. 30, 2013. Thomas faces up to 10 years in prison, followed by a lifetime of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz, Kevin Niland, Inspector in Charge of the U.S. Postal Inspection Service, and Chief Brian J. Pattullo of the Andover Police Department, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
Albuquerque Man Pleads Guilty to Using a Firearm to Rob a Pharmacy of Prescription PainkillersRead the Press Release
ALBUQUERQUE – James Phillip Tafoya, 43, of Albuquerque, N.M., entered a guilty plea this morning to using a firearm in relation to a crime of violence under a plea agreement with the U.S. Attorney’s Office. Under the terms of the plea agreement, Tafoya will be sentenced to seven years in federal prison followed by a term of supervised release to be determined by the court.
Tafoya was arrested in Jan. 2013 on a three-count indictment charging him with (1) violating the Hobbs Act by robbing a business involved in interstate commerce, (2) using a firearm in relation to a crime of violence, and (3) theft of medical products. Count 1 of the indictment alleged that Tafoya robbed an employee of an Albuquerque-area CVS Pharmacy at gunpoint on Nov. 3, 2012, and stole Oxycodone and Oxycontin. Count 2 alleged that Tafoya used a firearm to perpetuate the robbery, and Count 3 alleged that Tafoya used violence and the threat of violence to unlawfully take pre-retail medical products.
This morning, Tafoya pleaded guilty to Count 2 of the indictment. In entering his guilty plea, Tafoya admitted that on Nov. 3, 2012, he committed armed robbery of the CVS store located at 9640 Menual Blvd NE, in Albuquerque. Tafoya stated that he entered the store, displayed and brandished a firearm in order to intimidate the clerk, and demanded that the clerk give him Oxycodone and Oxycontin. He also admitted knowing that CVS is a business engaged in interstate commerce, and that he used a firearm to knowingly and unlawfully take pre-retail medical products through the threat of violence or force.
Tafoya has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. Under the terms of the plea agreement, Counts 1 and 3 of the indictment will be dismissed after Tafoya is sentenced.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department, and is being prosecuted by Assistant U.S. Attorney Jon K. Stanford. The case was brought as part of a new law enforcement initiative launched in July 2012, by the FBI’s Violent Crimes and Major Offender Squad and the Albuquerque Police Department’s Armed Robbery Unit that targets suspects implicated in commercial armed robberies. This new initiative is part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under the anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from our communities for as long as possible.
9 Individuals Indicted and Arrested for Drug Trafficking in the Municipality of PonceRead the Press Release
Defendants face a forfeiture allegation of one million dollarsSAN JUAN, PR – On Wednesday, July 24, a federal grand jury indicted 9 individuals as the result of an investigation led by Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HIS), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Puerto Rico Police Department (PRPD), announced today United States Attorney Rosa Emilia Rodríguez-Vélez.
The indictment charges 9 individuals in a two-count indictment with possession of firearms in furtherance of a drug trafficking crime and conspiracy to possess with intent to distribute controlled substances at the “Méndez Vigo” area, located within the municipality of Ponce. The object of the conspiracy was to distribute “crack” (cocaine base), cocaine, marihuana and heroin for significant financial gain and profit.
The defendants are: Leonardo Lizardi-Muñiz, aka “Pichu;” Reynaldo Lizardi-Muñiz, aka “Rey;” Mariano Maldonado-Muñiz, aka “Marianito;” Jayson Rentas-Muñiz, aka “Jayson;” José L. Rinaldi-Vélez, aka “Joseito;” Jorge Rivera-Rivera, aka “El Mono;” Elvin Romàn-Díaz, aka “Piojillo;” Omar Sotomayor-Sepúlveda, aka “Omaro;” and José A. Villodas-Chamorro, aka “Villoda.”According to the indictment, the defendants would possess, carry, brandish, discharge and use firearms to protect themselves and their drug trafficking activities. They would routinely wear bullet proof vests in order to protect themselves during “shootouts” with rival drug traffickers.
“These arrests confirm the Justice Department’s commitment to hold ruthless drug traffickers responsible for selling narcotics and promoting the violence we are seeing in our communities,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “We will continue with our efforts of investigating and prosecuting drug trafficking organizations, until we have covered every municipality in Puerto Rico.”
The case is being prosecuted by Special Assistant United States Attorney Kelly Zenón and is part of the US Attorney’s Office Firearms and Violence Reduction Initiative.
If convicted, the defendants face a minimum of fifteen (15) years of imprisonment and a maximum of life imprisonment, with fines of up to $10 million. Criminal indictments are only charges and not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
$17 Million False Claims Act Judgment Entered Against Washington, D.C. Health Care Provider-Government Alleged Double-Billing for Tests and Services-Read the Press Release
WASHINGTON – The U.S. District Court for the District of Columbia has entered judgment for more than $17 million against Dr. Ishtiaq Malik and his two companies, Ishtiaq Malik M.D., P.C. and Advanced Nuclear Diagnostics, for submitting false nuclear cardiology claims to federal and state health care programs, the Justice Department announced today. Ishtiaq Malik, a nuclear cardiologist, has practiced in the District of Columbia metropolitan area since 2002.
The government’s allegations focused on Dr. Malik’s inappropriate claims for myocardial perfusion studies, commonly referred to as nuclear stress tests. These diagnostic imaging studies determine whether a patient has heart disease due to inadequate blood flow to the heart muscles. The test is usually performed in two separate phases: stress and rest. The two phases, which can be conducted on the same day or separate days, must be coded and submitted as one test. The government alleged that, contrary to these requirements, Dr. Malik and his companies double-billed for multi-day nuclear stress test studies.
The Honorable Robert L. Wilkins issued the judgment today.
“This doctor fraudulently diverted critical resources from government health care programs, contributing to the rising cost of health care for all Americans,” said Ronald C. Machen Jr., U.S. Attorney for the District of Columbia. “This lawsuit was designed to hold the doctor to account for bilking the taxpayer. We will do everything in our power to obtain every cent of the $17 million this doctor now owes the American people.”
“Physicians who participate in government health care programs must bill for their services accurately and honestly,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division. “The Department of Justice is committed to pursuing those physicians who seek financial gain at the expense of taxpayer-funded programs.”
The government alleged that Dr. Malik submitted false claims to Medicare, District of Columbia Medicaid, Maryland Medicaid, TRICARE and the Federal Employees Health Benefits Plan. In addition, the government alleged that Dr. Malik and his companies billed under codes that did not apply to the nuclear stress test studies he administered and billed for services already included in the payment for nuclear stress test codes, such as intravenous injections, drug infusions, 3D rendering and drug administration. He and his companies also allegedly billed for services not performed.
“Federal employees deserve health care providers who meet the highest standards of ethical and professional behavior,” said Patrick E. McFarland, Inspector General of the U.S. Office of Personnel Management. “This judgment reminds health care providers that they must observe those standards and reflects the commitment of federal law enforcement organizations to pursue improper and illegal conduct that places the health care system at risk.”
“Dr. Malik fraudulently charged for his services and taxpayers deserve protection from such scams,” said Daniel R. Levinson, Inspector General of the U.S. Department of Health and Human Services. “OIG agents, working with other law enforcement agencies, conducted interviews, gathered records and analyzed data to conclude a successful investigation and bring the doctor to justice.”
The government filed suit against Dr. Malik and his two companies under the False Claims Act, which allows the government to recover three times its damages, plus penalties, from those who submit false claims for federal funds. The state of Maryland and the District of Columbia subsequently joined the lawsuit under their respective state false claims acts.
This civil lawsuit illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $14.7 billion through False Claims Act cases, with more than $10.7 billion of that amount recovered in cases involving fraud against federal health care programs.
This investigation was a cooperative effort among the Commercial Litigation Branch, Civil Division, Department of Justice; the U. S. Attorney’s Office for the District of Columbia; the Maryland Attorney General’s Office; and the Attorney General’s Office for the District of Columbia. The Department of Health and Human Services’ Office of the Inspector General, the Office of Personnel Management’s Office of the Inspector General, and the District of Columbia’s Office of the Inspector General, Medicaid Fraud Control Unit, assisted in the investigation.
The lawsuit is United States of America et al. v. Malik et al., No. 1:12-01234-RLW (D.D.C.).
13-268
29 July 2013
Waterbury Man Sentenced to 30 Months in Federal Prison for Trading Child PornographyRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that PAUL D’AMBROSIO, 49, of Waterbury, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 30 months of imprisonment, followed by six years of supervised release, for trading child pornography on the Internet.
According to court documents and statements made in court, on August 8, 2012, a Hartford Police detective assigned to the Connecticut Child Exploitation Task Force logged into a publicly-available Internet file sharing program and downloaded approximately 50 images and 10 videos of child pornography from shared directories maintained by D’AMBROSIO. On August 30, 2012, Task Force agents searched D’AMBROSIO’s residence and seized a laptop computer and related components. A forensic search of the computer revealed hundreds of images and videos of child pornography, including images of children under the age of 12 engaged in sexually explicit conduct and images of children engaging in sadistic or masochistic conduct.
D’AMBROSIO was arrested on August 30, 2012. On March 11, 2013, he pleaded guilty to one count of receipt and distribution of child pornography.
This matter was investigated by the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies, including the Hartford Police Department. The Waterbury Police Department also assisted the investigation. The case was prosecuted by Assistant United States Attorney Sarala V. Nagala.
The Connecticut Child Exploitation Task Force, which is housed at the main FBI office in New Haven, investigates crimes against children occurring over the Internet, and provides computer forensic review services for participating agencies. For more information about the Task Force, or to report child exploitation crimes, please contact the FBI at 203-777-6311.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Village Market Food Centers’ Comptroller Sentenced to 87 Months in Prison for Stealing from CompanyRead the Press Release
GRAND RAPIDS, MICHIGAN – Christopher Earl Pratt, 42, of Portage, Michigan was sentenced today to 87 months (7 years and 3 months) in federal prison for defrauding his former employer, Village Market Food Centers, the U.S. Attorney’s Office announced today. In addition to the prison term, Chief U.S. District Judge Paul L. Maloney imposed a 3-year term of supervised release that will commence once Pratt is released from imprisonment. In addition to the prison and supervised release terms, Pratt was ordered to pay restitution in the amount of $6,548,706.30, plus ordered to forfeit an additional $6,548,706.30 to the government.
Pratt abused his position as comptroller to steal from Village Market, nearly putting the company out of business and resulting in the closure of at least three stores and the termination of 170 employees. Pratt concealed his crime from Village Market, which did not discover the theft until Pratt stole nearly seven million dollars over seven to eight years. Pratt used the stolen money primarily to purchase and refurbish “muscle-cars” including fourteen Ford Mustangs, seven Chevrolet Chevelles, four Dodge Challengers, five Chevrolet Camaros, four Jeep Wranglers, three Buick Skylarks, two Plymouth Barracudas, one Plymouth Fury, one Pontiac GTO, and one Ford Torino. The FBI recovered many of those vehicles and they were turned over to a receiver seeking to recover assets on behalf of Village Market.
The case was investigated by the FBI, St. Joseph, Michigan.
END
Two Defendants Indicted in Alleged Bank Robbery Attempt in Richmond, Ill., During Which Third Suspect Was Fatally ShotRead the Press Release
CHICAGO – Two defendants who were arrested in May after they allegedly attempted to rob a bank in Richmond, Ill., during which a third suspect was fatally shot, will be arraigned on federal charges tomorrow in U.S. District in Chicago. The defendants, AARON RUSSELL and ROBERTO FAVELA, who were initially charged in Federal Court in Rockford, were indicted last week by a federal grand jury in Chicago, moving the case to the Federal Court in Chicago.
Russell, 40, of Orland Hills, and Favela, 34, of Chicago, are scheduled to be arraigned at 10:30 a.m. tomorrow before U.S. Magistrate Judge Sheila Finnegan. They were indicted last Thursday on one count each of attempted bank robbery, conspiracy to commit bank robbery, and using firearms during a violent crime. Russell alone was also indicted for illegally possessing firearms as a previously convicted felon.
On May 10, Russell, Favela, and Tony Starnes, 45, of Chicago, allegedly traveled from Chicago to Richmond, where they planned to and attempted to rob the Associated Bank on Main Street in the McHenry County village near the Wisconsin border. FBI agents confronted the men when they arrived in the bank’s parking lot in two vehicles, and Starnes, who was driving one of the cars, was shot and killed after he drove his car into an agent’s vehicle. Russell and Favela were arrested at that time.
Between them, Russell and Favela allegedly possessed four loaded guns, and Russell was charged with being a felon-in-possession of three of the firearms.
The charges were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. Various local police departments and county sheriff’s departments assisted in the investigation and apprehension of the defendants. The government is being represented by Assistant U.S. Attorneys Christopher Stetler and Marc Krickbaum.
Attempted bank robbery carries a maximum penalty of 20 years in prison; conspiracy to commit bank robbery carries a maximum of 5 years in prison; and carrying firearms during a crime of violence carries a mandatory consecutive sentence of 5 years and a maximum of life in prison, and each count carries a $250,000 maximum fine. The felon-in-possession of firearms count against Russell carries a maximum of 10 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt against each defendant.
Indictment
Twice Convicted Sex Offender Sentenced to 51 Years in Prison for Eight Counts of Production of Child PornographyRead the Press Release
Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Terrance Dion Robinson, age 39, of Baltimore, Maryland, today to 51 years in prison, followed by lifetime supervised release, for eight counts of sexually exploiting minors to produce child pornography. Robinson had two previous convictions in Montgomery County, Maryland, for crimes involving the sexual abuse of children. Judge Bredar ordered that upon his release from prison Robinson must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to Robinson’s plea agreement, between 2007 and 2010, Robinson produced images and videos of two prepubescent minors engaged in sexually explicit conduct, while he was alone with the victims. Additionally, Robinson used a publicly available file sharing program to download images and videos of child pornography from the internet. Robinson saved the images and videos to his laptop computer, external hard drive, and to other digital media.
On October 18, 2010, detectives from the Child Abuse Unit of the Baltimore Police Department searched Robinson’s residence and seized Robinson’s computer equipment and digital camera. During a subsequent forensic examination of the computer and digital media, investigators found images and videos of the victims engaged in sexually explicit conduct produced by Robinson. The digital media seized from Robinson’s home also contained over 600 images of children engaged in sexually explicit conduct, including at least 4 videos. The videos were downloaded from the internet in 2010 using a file sharing program. The forensic examination of the computer, external hard drive, thumb drives, flash drives, CDs and DVDs revealed that Robinson regularly searched for files, websites and discussions relating to child pornography and encryption.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, and the Baltimore City State’s Attorney’s Office for their work in this investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow and former Special Assistant United States Attorney Christine Duey of the U.S. Justice Department, who prosecuted the case.
Twice Convicted Sex Offender Sentenced to 51 Years in Prison for Eight Counts of Production of Child PornographyRead the Press Release
Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Terrance Dion Robinson, age 39, of Baltimore, Maryland, today to 51 years in prison, followed by lifetime supervised release, for eight counts of sexually exploiting minors to produce child pornography. Robinson had two previous convictions in Montgomery County, Maryland, for crimes involving the sexual abuse of children. Judge Bredar ordered that upon his release from prison Robinson must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to Robinson’s plea agreement, between 2007 and 2010, Robinson produced images and videos of two prepubescent minors engaged in sexually explicit conduct, while he was alone with the victims. Additionally, Robinson used a publicly available file sharing program to download images and videos of child pornography from the internet. Robinson saved the images and videos to his laptop computer, external hard drive, and to other digital media.
On October 18, 2010, detectives from the Child Abuse Unit of the Baltimore Police Department searched Robinson’s residence and seized Robinson’s computer equipment and digital camera. During a subsequent forensic examination of the computer and digital media, investigators found images and videos of the victims engaged in sexually explicit conduct produced by Robinson. The digital media seized from Robinson’s home also contained over 600 images of children engaged in sexually explicit conduct, including at least 4 videos. The videos were downloaded from the internet in 2010 using a file sharing program. The forensic examination of the computer, external hard drive, thumb drives, flash drives, CDs and DVDs revealed that Robinson regularly searched for files, websites and discussions relating to child pornography and encryption.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department, and the Baltimore City State’s Attorney’s Office for their work in this investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Paul E. Budlow and former Special Assistant United States Attorney Christine Duey of the U.S. Justice Department, who prosecuted the case.
Twenty-Eight People Indicted for Methamphetamine Conspiracy in Whitley CountyRead the Press Release
CITY, KY - A federal indictment, unsealed today, charges 28 individuals from Whitley County, KY., with a conspiracy to manufacture large quantities of methamphetamine.
Investigators with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Kentucky State Police (KSP), U.S. Marshal’s Office (USMS) and the Williamsburg Police Department arrested eight defendants this morning in Whitley County. All of the other defendants are already in custody.
On Thursday, July 25, a superseding indictment, which is a charging document that alters or changes information from a previous indictment, was returned sealed by a federal grand jury in London. The superseding indictment added 16 new defendants in a conspiracy to distribute at least 500 grams of a methamphetamine mixture over the course of approximately three and a half years. The original indictment, filed in May, charged 12 defendants in the conspiracy. The superseding indictment also charges some of the defendants with additional drug and firearm offenses.
Specifically, 35 year-old James Forest Manning is charged with manufacturing methamphetamine, carrying and using a firearm during and in relation to a drug trafficking offense and being an unlawful user of methamphetamine in possession of firearms. Jamie Mark Gibson 41, and Danny Lee Fyffe, 49, are charged with being unlawful users of methamphetamine in possession of a firearm.
The superseding indictment also alleges that Daniel John Moeser, 44, possessed firearms and explosives after having previously been convicted of a felony offense. Lisa Canada Ball, 49, is charged with being an unlawful user of methamphetamine in possession of firearms and explosives. Both defendants were charged with these offenses in the original indictment.
The other defendants indicted in the case are Bobby Darrell Canada, II, 26; David Allen Davis, 29; Robert Joe Gibson, 23; Michelle Manning, 33; Wayne Marcus, 32; Billy Ray Richardson, 35; Anthony Rose, 32; Jerry White, 36; Beverly Wilson, 28; James Bennett, 39; Wendell Ralph Canada, 31; Ryan David Carlson, 36; George Thomas Hubbard, 49; Mark A. Morrow, 46; Harrison B. Sulfridge, 33; Joanna Cansler, 55; Teanna Marie Cansler, 33; Robert Church, 27; William Helbig, Jr., 36; Suzann Judy Phillips, 49; Anna Davis, 24; Jason Wade Taylor, 31 and Aaron David Ellison, 35;
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Stuart L. Lowery, Special Agent in Charge, Bureau of Tobacco, Firearms and Explosives (ATF), Wayne Bird, Police Chief, Williamsburg Police Department and Loren Carl, U.S. Marshal for the Eastern District of Kentucky, jointly announced the superseding indictment today.
The investigation preceding the indictment was a result of a joint collaboration between the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Post 11 of the Kentucky State Police, the Williamsburg Police Department; the U.S. Marshal’s Office; Kentucky Division of Probation and Parole; the Whitley County Sheriff’s Department and the Commonwealth Attorney’s Office for the 34th Judicial Circuit.
Arraignments for some defendants are set for August 2, 2013, while the defendants arrested today will make their initial appearances in court tomorrow. The conspiracy charge carries a maximum of 20 years in prison. Manning faces a minimum of five years in prison and a maximum of life for carrying and using a firearm during a drug trafficking crime. Additionally, he faces a maximum of 20 years for the manufacturing methamphetamine charge. The defendants charged with firearm/weapons offenses face a maximum of 10 years imprisonment.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial, at which the government must prove their guilt beyond a reasonable doubt.
Title of the news release goes hereRead the Press Release
MOBILE, Ala. - Cecily Ann Colvin, 23, of Theodore, Alabama, was sentenced today in federal court for her participation in a scheme to manufacture methamphetamine. Colvin pled guilty to the charge of conspiracy to manufacture methamphetamine in April of this year.
Court documents showed that Colvin and her co-defendant Clarence Lee were living at a trailer in Grand Bay, Alabama, when a DHR case worker arrived to perform a safety check on two of Colvin’s children who also lived there. The case worker observed materials which appeared to be a meth lab in the trailer and contacted the Mobile County Sheriff’s Office. Sheriff’s deputies responded to the call and arrived at the scene. One of the children was present at the residence at that time with a relative. Colvin, Lee and the second minor child arrived in a vehicle while the deputies were there. The deputies found a pistol in the vehicle and confronted Colvin and Lee about the circumstances, asking for consent to search the residence. Both provided permission to search and the deputies found materials used in the manufacture of methamphetamine. Colvin admitted her involvement in the scheme after she was advised of her rights by the deputies. She admitted that Lee and another co-defendant Miles Alexander cooked meth at the residence. She and the others bought pseudoephedrine used in the methamphetamine manufacturing process.
This morning,United States District Court Judge William Steele imposed a sentence of 48 months imprisonment in the case. Judge Steele also ordered Colvin to undergo drug abuse treatment and mental health counseling during her imprisonment and after she is released on three years of supervision following her imprisonment. He ordered that Colvin pay the mandatory $100 special assessment, but found that she was not financially able to pay a fine. Colvin was taken into custody immediately following the imposition of sentence.
The case was investigated by the Mobile County Sheriff’s Office. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Three Plead Guilty in Connection with Drug Trafficking CaseRead the Press Release
Jackson, Miss. – Aundra Mason, a/k/a Grey Head, 36, Fredrick Darnell Ford, 38, and Shamika Y. Fulford, 35, all of Jackson, pled guilty in U.S. District Court today to charges in connection with a drug trafficking investigation, announced U.S. Attorney Gregory K. Davis and Daniel McMullen, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
Aundra Mason pled guilty to possession with intent to distribute cocaine hydrochloride. He faces a maximum penalty of 20 years in prison and a $1 million fine.
Frederick Darnell Ford pled guilty to harboring and concealing a fugitive. He faces a maximum penalty of five years in prison and a $250,000 fine.
Shamika Y. Fulford pled guilty to use of a communications facility to further a drug trafficking crime. She faces a maximum penalty of four years in prison and a $250,000 fine.
The defendants will be sentenced on October 29, 2013 by U.S. District Judge David C. Bramlette III.
This case is the result of an extensive investigation, dubbed “Operation Paperchase”, targeting illegal narcotics distribution in the City of Jackson. The lead investigative agency in this operation was the Federal Bureau of Investigation. Assisting agencies included the Drug Enforcement Administration, U.S. Marshals Service, Gulf Coast HIDTA, Mississippi Bureau of Narcotics, and Jackson Police Department.
The case was prosecuted by Assistant United States Attorney Erin Chalk.
###If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
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You can also fax information to:
(225) 334-4707
or e-mail it to:
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Three Lakeland Men Sentenced to Federal Prison for Selling Firearms and DrugsRead the Press Release
Tampa, FL - U.S. District Judge Steven D. Merryday has sentenced three Lakeland residents to federal prison terms for various firearm and drug violations. Phillip Thomas (28) was sentenced today to three years in federal prison for transferring an unregistered short barreled shotgun and aiding and abetting a felon in possession of a firearm. On July 24, 2013, Michael Joseph Harper (25) was sentenced to eight years’ imprisonment for transferring an unregistered short barreled shotgun and for being a felon in possession of a firearm. On July 17, 2013, Merryday sentenced Joshua Paul Blevins (20) to 5 years’ probation for aiding and abetting a felon in possession of a firearm. Thomas, Harper and Blevins pleaded guilty to the offenses in May 2013.
According to court documents, Harper, along with Thomas and Blevins, sold multiple firearms and drugs to undercover law enforcement agents. Harper, a convicted felon, either sold or was involved in selling forty-five firearms, Hydrocodone, Xanax, and Oxycodone pills, marijuana, and cocaine. Thomas sold six firearms, including a short barreled shotgun, cocaine, Xanax, and Hydrocodone pills. Blevins assisted Harper in selling two high-powered rifles.
Thomas, Harper and Blevins were arrested during Operation “Smoke-N-Guns.” “Smoke-N-Guns” was a joint law enforcement effort that targeted convicted felons, drug dealers and gang members who were illegally possessing or selling firearms in the Lakeland area.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lakeland Police Department. It was prosecuted by Assistant United States Attorney Stacie B. Harris.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. Acting United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
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Texas Man Sentenced for Presentation of False Information to Customs OfficersRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney, William J. Hochul, Jr., announced that Mark Logan, 63, of Southlake, Texas, pleaded guilty to presenting false information to customs officers and sentenced to pay a $5,000 fine by U.S. Magistrate Judge Leslie G. Foschio.
Assistant U.S. Attorney Maura K. O'Donnell, who handled the case, stated that the defendant was President of Nevada Classics, a classic car dealership, in Las Vegas, Nevada. In that role, Logan facilitated the sale and transportation of a 1957 replica Shelby Cobra automobile from a Canadian seller to a buyer in the United States. William Corum, a contractor who had done work for Nevada Classics in the past, was paid by the buyer to transport the vehicle over the U.S. border, using Nevada Classics dealer license plates. In an effort to circumvent importation restrictions, Logan instructed Corum to tell Customs and Border Protection Officers that the vehicle was being transported into the U.S. for one day, for a car show.
Customs and Border Protection Officers suspected that the vehicle was in fact being illegally imported into the U.S. for sale, and initiated further investigation into the matter. The vehicle, which is worth approximately $85,000, was seized by officers.
The plea and sentencing are the result of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and Officers from U.S. Customs and Border Protection, under the direction of James Engleman, Director of Field Operations.Stars of ‘Real Housewives of New Jersey’ Television Series Indicted on Fraud and Tax ChargesRead the Press Release
NEWARK, N.J. – Two of the stars of the Bravo television show “The Real Housewives of New Jersey” were charged today in a conspiracy to defraud lenders and illegally obtain mortgages and other loans as well as allegedly hiding assets and income during a bankruptcy case, U.S. Attorney Paul J. Fishman announced.
Teresa Giudice, 41, and her husband, Giuseppe “Joe” Giudice, 43, both of Towaco, N.J., were charged with conspiracy to commit mail and wire fraud, bank fraud, making false statements on loan applications and bankruptcy fraud in a 39-count indictment returned today by a federal grand jury. The indictment also charges Giuseppe Giudice with failure to file tax returns for tax years 2004 through 2008, during which time he allegedly earned nearly $1 million
“The indictment returned today alleges the Guidices lied to the bankruptcy court, to the IRS and to a number of banks,” U.S. Attorney Fishman said. “Everyone has an obligation to tell the truth when dealing with the courts, paying their taxes and applying for loans or mortgages. That’s reality.”
“The Federal Deposit Insurance Corporation Office of Inspector General is pleased to join the United States Attorney for the District of New Jersey and our law enforcement colleagues in announcing this indictment today,” Special Agent in Charge A. Derek Evans said. “We are committed to our partnerships with federal, state, and local law enforcement to address mortgage fraud cases throughout the country. The American people need to be assured that their government is working to ensure integrity in the financial services and housing industries and that those involved in criminal misconduct that undermines that integrity will be held accountable.
“The privilege of living well in the United States carries certain real responsibilities, including filing tax returns when required and paying the correct amount of tax,” Shantelle P. Kitchen, Special Agent in Charge, IRS-Criminal Investigation, Newark Field Office, said. “Today’s indictment alleges the Giudices did not live up to their responsibilities by failing to file tax returns, falsifying loan applications and concealing assets in their bankruptcy petition. The reality is that this type of criminal conduct will not go undetected and individuals who engage in this type of financial fraud should know they will be held accountable.”
According to the Indictment:
From September 2001 through September 2008, Giuseppe and Teresa Giudice allegedly engaged in a mail and wire fraud conspiracy in which they submitted to lenders fraudulent mortgage and other loan applications and supporting documents in order to obtain mortgages and other loans. The Giudices falsely represented on loan applications and supporting documents that they were employed and/or receiving substantial salaries when, in fact, they were either not employed or not receiving such salaries.
For example, in September 2001, Teresa Giudice applied for a mortgage loan of $121,500 for which she submitted a loan application that falsely claimed that she was employed as an executive assistant. She also submitted fake W-2 Forms and fake paystubs purportedly issued by her employer. The indictment also charges specific instances where the Giudices committed bank fraud and loan application fraud in the course of obtaining loans from several banks.
On Oct. 29, 2009, the Giudices filed a petition for individual Chapter 7 bankruptcy protection in U.S. Bankruptcy Court in Newark. Over the next few months, they filed several amendments to the bankruptcy petition. As part of the bankruptcy filings, the Giudices were required to disclose to the United States Trustee, among other things, assets, liabilities, income, and any anticipated increase in income. The indictment alleges that the Giudices intentionally concealed businesses they owned, income they received from a rental property, and Teresa Giudice’s true income from the television show “The Real Housewives of New Jersey,” website sales, and personal and magazine appearances. The Giudices concealed their anticipated increase in income from the then-upcoming Season Two of the Bravo television show. The Giudices are charged with multiple counts of bankruptcy fraud for concealing and making false oaths and declarations about the assets and income during their bankruptcy case.
The indictment also alleges that during tax years 2004 through 2008, Giuseppe Giudice received income totaling $996,459, but did not file tax returns for those years.
The conspiracy to commit mail and wire fraud count carries a maximum potential penalty of 20 years of in prison and a $250,000 fine. The bank fraud and loan application fraud counts each carry a maximum potential penalty of 30 years in prison and a $1 million fine. The bankruptcy fraud counts each carry a maximum penalty of five years in prison and a $250,000 fine. The failure to file a tax return counts each carry a maximum penalty of one year in prison and a $100,000 fine.
U.S. Attorney Fishman credited special agents of the Federal Deposit Insurance Corporation, Office of Inspector General, New York Region, under the direction of Special Agent in Charge A. Derek Evans; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and Region 3 U.S. Trustee Roberta DeAngelis and the Newark office of the U.S. Trustee, with the investigation which led to today’s indictment.
The government is represented by Assistant U.S. Attorneys Jonathan W. Romankow and Rachael Honig of the U.S. Attorney’s Office, Criminal Division in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty
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Defense counsel: Giuseppe Giudice: Miles Feinstein Esq., Paterson
Teresa Giudice: Henry E. Klingeman Esq., NewarkGiudice, Giuseppe and Teresa Indictment
St. Louis Man Sentenced for Firearm OffenseRead the Press Release
Johnny R. Wilbourn, a twenty-eight year old St. Louis, MO, man was sentenced in federal court on July 29, 2013, to four years in prison for unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Wilbourn was also sentenced to three years supervised release after his prison term, a $100 special assessment, and a $300 fine. Court proceedings revealed that on February, 13, 2013, a law enforcement official checking fares aboard a Metrolink train discovered Wilbourn without a ticket. A background check revealed two active warrants for Wilbourn. He was arrested and a loaded firearm was recovered from inside his coat.
Prior to February 13, 2013, Wilbourn had been convicted of a crime that was punishable by a term of imprisonment of more than one year.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the St. Clair County Sheriff’s Department. Special Assistant United States Attorney Stuart J. Zander prosecuted the case.
Spokane Man Sentenced as Armed Career Criminal for Firearm PosessionRead the Press Release
Spokane - Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Byron Cornelius Prince, age 49, of Spokane, Washington, was sentenced for the crime of being a previously convicted felon in possession of a firearm. United States District Court Judge Thomas O. Rice sentenced Prince to a 180 month term of imprisonment, to be followed by a 5 year term of court supervision after release from Federal prison. Because of his criminal history, which included three crimes of violence, Judge Rice found that Prince was an Armed Career Criminal. Prince has been in custody since November 14, 2012.
Prince was convicted following a two day jury trial in Federal District Court in Spokane, Washington. The trial began on April 29, 2013 and concluded with Princes's conviction on April 30, 2013. Evidence introduced at trial established that on the evening of June 21, 2011, Prince shot himself in the leg with a .22 caliber pistol during an argument with another individual. The shooting occurred near Prince's car, which was parked on the street outside Prince's residence in Spokane. As part of the investigation following the shooting, police officers obtained a warrant to search Prince's vehicle and found a .22 caliber pistol and holster in the trunk.
Michael C. Ormsby said, "The message should be clear, if you are a felon and you possess a firearm, the penalties will be severe. If you are an Armed Career Criminal, you will face a 15-year mandatory prison sentence. The safety of the community demands these sanctions."
The investigation was conducted by the Spokane Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by George J.C. Jacobs, III, Assistant United States Attorney for the Eastern District of Washington.
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Previously Convicted Felon Pleads Guilty to Stolen Identity Tax Refund Scheme and Possession of A FirearmRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Office, announce that defendant David Joseph, 27, of Ft. Lauderdale, pled guilty on Friday, July 26, 2013, to one count of filing false claims with the IRS, in violation of 18 U.S.C. § 287, one count of access device fraud, in violation of 18 U.S.C. § 1029(a) (3), one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A (a) (1), and one count of possession of a firearm by a convicted felon, in violation of 18 U.S.C. §§ 922(g)(1) and 924(a)(2).
Sentencing is scheduled for October 4, 2013 before U.S. District Judge William J. Zloch. At sentencing, the defendant faces a maximum of five years in prison on the fraudulent claim count, a maximum of 10 years in prison on the access device fraud count, a maximum of two years on the aggravated identity theft count, and a maximum of 10 years in prison on the count of possession of a firearm by a convicted felon.
According to court documents, on April 25, 2013, USSS and IRS-CI agents executed a search warrant at a residence in West Park, Florida, regarding possible stolen identities and tax refund fraud (SIRF) activities at the subject location. SIRF involves the unauthorized use of victims’ identities and personal information to file fraudulent tax returns requesting fraudulent refunds. During the search, the agents recovered numerous notebooks, medical printouts, IRS correspondence, prepaid debit cards, bank documents, and various other documents that contained thousands of access devices — victims’ names with corresponding social security numbers and dates of birth. A fully loaded semi-automatic MasterPiece Arms 9 mm pistol and additional ammunition belonging to Defendant Joseph, a previously convicted felon, was also recovered.
Mr. Ferrer commended the investigative efforts of the USSS, IRS-CI, and ATF. The case is being prosecuted by Assistant U.S. Attorney Bertha R. Mitrani.
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.
Ohio Pill Dealer Sentenced to 2 Years in Federal Prison for Selling OxycodoneRead the Press Release
Police seize several items including a car, guns, hundreds of prescription pills, and $17,000 in cash during a search
HUNTINGTON – An Ohio pill dealer who sold hundreds of dollars’ worth of powerful prescription painkillers in March 2010 was sentenced today to two years in federal prison, announced U.S. Attorney Booth Goodwin. Wesley Alan Wood, 32, formerly of Proctorville, Ohio, previously pleaded guilty in April to distribution of oxycodone. In March 2010, Wood met a confidential informant working with the Metropolitan Drug Enforcement Network Team (MDENT) at a predetermined location in Hurricane, W.Va. to complete a pill transaction. After meeting in the parking lot of a Wal-Mart store located in Hurricane, W.Va., the police informant entered the defendant’s vehicle and rode with Wood, and his wife, Kristina Wood, to a nearby Budget Inn Motel to complete the pill transaction. Wood later sold 85 80-milligram oxycodone tablets to the informant while the two were inside of a rented motel room.
Following the transaction, Kristina Wood drove the defendant and the informant back to the Wal-Mart parking lot. Wesley Wood repeatedly asked the informant where he had parked his vehicle. After failing to locate the informant’s vehicle, Wood sat a 9-millimeter pistol in his lap and told the informant to “get the [expletive] out of my car.” Wood and his wife then exited the Wal-Mart parking lot and were stopped by police. During a search of Wood’s vehicle, officers seized the defendant’s pistol, 71 80-milligram oxycodone tablets and 14 40-milligram oxycodone tablets.Officers also executed a search warrant on the defendant’s Proctorville residence. During the search, officers recovered two pistols, various prescription medications including 300 80-milligram oxycodone tablets, 166 7.5-milligram hydrocodone tablets, and, $17,453. Police also seized a 2000 Lincoln Town Car that was previously purchased by Wood. Wood told police that the car was purchased using illegal drug proceeds.
The investigation was conducted by MDENT, the Drug Enforcement Administration and the Huntington Police Department. Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by Chief United States District Judge Robert C. Chambers.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Ohio Crack Cocaine Dealer Sentenced to More Than 8 Years in Federal PrisonRead the Press Release
HUNTINGTON, W.Va. – An Ohio man was sentenced today to eight years and one month in federal prison for possession of crack cocaine with intent to distribute, announced U.S. Attorney Booth Goodwin. Shawn Delane Harris, also known as “Pops,” 44, of Springfield, OH, previously pleaded guilty in November 2012. On March 18, 2010, members of the Huntington Police Department conducted a traffic stop of the defendant’s vehicle on Virginia Avenue in Huntington. Harris, who was driving on a suspended license at the time, was arrested after a police search revealed marijuana and crack cocaine on his person. The crack cocaine was submitted to the West Virginia State Police Laboratory for testing and proved to be crack cocaine weighing 9.42 grams.
Harris is responsible for distributing a total of 1.34 kilograms of crack cocaine in and around Huntington.
The Huntington Police Department conducted the investigation. Assistant United States Attorney Gregory McVey handled the prosecution. The sentence was imposed by Chief United States District Judge Robert C. Chambers.North Dakota U.S. Attorney’s Office to Host Third Annual Tribal Consultation ConferenceRead the Press Release
BISMARCK - North Dakota U.S. Attorney Timothy Purdon has announced that the North Dakota U.S. Attorney’s Office Third Annual Tribal Consultation Conference will be held on August 1, 2013, at the James Henry Community Center on the campus of United Tribes Technical College in Bismarck, N.D.
In Bismarck, U.S. Attorney Timothy Purdon said, “We are pleased to host our third consultation conference with the Tribes in North Dakota. Open lines of communication between the Tribes and the U.S. Attorney’s Office is key to our Anti-violence Strategy for Tribal Communities. This annual conference allows all parties interested in improving public safety on the reservations in North Dakota the chance to discuss the issue and identify areas for cooperation and improvement.”
U.S. Attorney Purdon added, “The purpose of this Tribal Consultation Conference is to bring together tribal leaders and law enforcement leaders from across the state to discuss how the U.S. Attorney’s Office can help improve public safety in tribal communities in North Dakota. We will listen to tribal concerns in breakout sessions on pressing issues such as domestic violence and juvenile justice.
We will also hear from Tribal leaders, our federal law enforcement partners, the Chief Judge of the United States District Court, Ralph R. Erickson, the North Dakota Indian Affairs Commission, and child protection professionals. By bringing these key stakeholders together, the U.S. Attorney’s Office’s hopes to continue our march forward toward safer tribal communities.”
Tribal Consultation Conference Schedule:
OPEN PRESS: 9:00 a.m. to 2:15 p.m.
* Welcoming Ceremony: 9:00 a.m.
* United States Attorney Timothy Purdon Remarks: 9:30 a.m.
* Conference Speakers: 10:00 a.m.- 2:15 p.m.The North Dakota U.S. Attorney’s Office 2013 Tribal Consultation Conference will be held on August 1, 2013, at the James Henry Community Center on the campus of United Tribes Technical College in Bismarck.
The media is welcome to the OPEN PRESS session from 9:00 a.m. to 2:15 p.m.
North Braddock Man Sentenced to Prison for Possessing Child PornographyRead the Press Release
PITTSBURGH, Pa. - An Allegheny County man has been sentenced in federal court to 30 months imprisonment, to be followed by 15 years supervised release, on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Joy Flowers Conti imposed the sentence on Charles R. Gladish, 41, of North Braddock, Pa.
According to information presented to the court at the guilty plea proceeding, Gladish possessed, on Oct. 26, 2011, in excess of 50 photographs and videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not attained the age of 12 years.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Pennsylvania State Police for the investigation leading to the successful prosecution of Gladish.
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.