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29 July 2013
New Indictment Charges Montgomery County Man and an Illinois Woman in A Violent Sex Trafficking ConspiracyRead the Press Release
Allegedly Used Guns, Threats, and Violence to Force the Victims to Engage
in Prostitution
Greenbelt, Maryland – A federal grand jury has returned a superseding indictment charging Jean Claude Roy, a/k/a “Dredd the Don,” and “Dreddy,” age 31, of Germantown, Maryland, and Brittney Creason, a/k/a “Kitty Amor,” age 19, of Decatur, Illinois, with conspiracy to commit sex trafficking. Roy is also charged with sex trafficking and attempted sex trafficking by force, fraud and coercion; interstate transportation for prostitution; possessing and brandishing a firearm during a crime of violence; and witness and evidence tampering. Creason was arrested today in Las Vegas, Nevada, where she was being held on unrelated charges. Roy, who was charged in the initial indictment, remains detained. The superseding indictment was returned on July 24, 2013.
The superseding indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General for the Department of Justice Civil Rights Division Jocelyn Samuels.; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief J. Thomas Manger of the Montgomery County Police Department.
“Protecting our communities from those who engage in human trafficking is a top priority for ICE Homeland Security Investigations,” said William Winter, special agent in charge of HSI Baltimore. "As a member of the Maryland Human Trafficking Task Force, HSI is committed to working with our law enforcement partners to investigate human trafficking, as well as working with our local non-governmental, community-based and faith-based organizations to identify, rescue and assist victims of trafficking.”
According to the 12-count indictment, between August and September 2012, Roy forced an individual to engage in commercial sex acts, transported the victim across state lines to engage in prostitution and brandished a gun to facilitate the sex trafficking. The indictment further alleges that in December 2012, Roy and Creason conspired to force three individuals to engage in commercial sex acts. As part of the conspiracy, Roy and Creason are alleged to have recruited and transported females from Illinois and North Carolina, with the intent to have those women engage in prostitution. According to the indictment, Roy forced one of the victims to engage in sex acts with him, while Creason held her down. The indictment alleges that Roy forced the women to engage in prostitution by threatening them with physical force and death, brandishing a firearm and by bragging about beating murder charges. Finally, the indictment alleges that from January 1 to January 10, 2013, while Roy was in jail on related state charges, he made numerous telephone calls to an individual and had that person access online accounts and storage services belonging to Roy and Creason in order to erase evidence related to these charges.
Roy and Creason face a maximum sentenced of life in prison for conspiracy to commit sex trafficking.
Roy faces a minimum mandatory sentence of 15 years in prison and a maximum of life in prison on each of two counts of sex trafficking and two counts of attempted sex trafficking; a mandatory sentence of 7 years for first count of brandishing a firearm in relation to a crime of violence and a mandatory sentence of 25 years for second count, consecutive to any other sentence imposed, and a maximum of life in prison; a maximum of 10 years in prison for each of four counts of interstate transportation for prostitution; and a maximum of 20 years in prison for witness and evidence tampering. No court appearance has been scheduled for the defendants in U.S. District Court in Greenbelt.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit www.justice.gov/usao/md/Human‑Trafficking/index.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley, and Trial Attorney William E. Nolan of the U.S. Department of Justice Civil Rights Division's Human Trafficking Prosecution Unit, who are prosecuting the case.
New Indictment Charges Maryland Man and an Illinois Woman in a Violent Sex Trafficking ConspiracyRead the Press Release
A federal grand jury has returned a superseding indictment charging Jean Claude Roy, aka “Dredd the Don,” and “Dreddy,” age 31, of Germantown, Md., and Brittney Creason, aka“Kitty Amor,” age 19, of Decatur, IL., of conspiracy to commit sex trafficking. Dreddy is also charged with sex trafficking and attempted sex trafficking by force, fraud and coercion; interstate transportation for prostitution; possessing and brandishing a firearm during a crime of violence; and witness and evidence tampering. Creason was arrested today in Las Vegas, where she was being held on unrelated charges. Dreddy, who was charged in the initial indictment, remains detained. The superseding indictment was returned on July 24, 2013.
The superseding indictment was announced by U.S. Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General for the Department of Justice Civil Rights Division Jocelyn Samuels; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief J. Thomas Manger of the Montgomery County Police Department.
“Protecting our communities from those who engage in human trafficking is a top priority for ICE Homeland Security Investigations,” said William Winter, special agent in charge of HSI Baltimore. "As a member of the Maryland Human Trafficking Task Force, HSI is committed to working with our law enforcement partners to investigate human trafficking, as well as working with our local non-governmental, community-based and faith-based organizations to identify, rescue and assist victims of trafficking.”
According to the 12-count indictment, between August and September 2012, Roy forced an individual to engage in commercial sex acts, transported the victim across state lines to engage in prostitution and brandished a gun to facilitate the sex trafficking. The indictment further alleges that in December 2012, Roy and Creason engaged in a sex trafficking conspiracy to force three individuals to engage in commercial sex acts. As part of the conspiracy, Roy and Creason are alleged to have recruited and transported females from Illinois and North Carolina, with the intent to have those women engage in prostitution. According to the indictment, Roy forced one of the victims to engage in sex acts with him, while Creason held her down. The indictment alleges that Roy forced the women to engage in prostitution by threatening them with physical force and death, brandishing a firearm and by bragging about beating murder charges. Finally, the indictment alleges that from Jan. 1 to Jan. 10, 2013, while Roy was in jail on related state charges, he made numerous telephone calls to an individual and had that person access online accounts and storage services belonging to Roy and Creason in order to erase evidence related to these charges.
Roy and Creason face a maximum sentenced of life in prison for conspiracy to commit sex trafficking. Roy faces a minimum mandatory sentence of 15 years in prison and a maximum of life in prison on each of two counts of sex trafficking and two counts of attempted sex trafficking; a mandatory sentence of seven years for the first count of brandishing a firearm in relation to a crime of violence and a mandatory sentence of 25 years for the second count, consecutive to any other sentence imposed, and a maximum of life in prison; a maximum of 10 years in prison for each of four counts of interstate transportation for prostitution; and a maximum of 20 years in prison for witness and evidence tampering. An initial appearance has not yet been scheduled for the defendants in U.S. District Court in Greenbelt, Md.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit www.justice.gov/usao/md/Human‑Trafficking/index.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
U.S. Attorney Rod J. Rosenstein commended HSI Baltimore and the Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley, and Trial Attorney William E. Nolan of the U.S. Department of Justice Civil Rights Division's Human Trafficking Prosecution Unit, who are prosecuting the case.
More Defendants Sentenced for Murder/Marijuana Grow House ConspiracyRead 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, Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and J.D. Patterson, Director, Miami-Dade Police Department, announced the sentencings of defendants Gilberto Santiesteban Jr., Darvis Santiesteban, Gilberto Santiesteban, Sr., Tomy Gonzalez and Lisa Gonzalez all of Miami, and Norge Manduley, of Hialeah, before U.S. District Judge K. Michael Moore.
According to court documents and statement, the defendants and other co-conspirators operated an extensive network of hydroponic marijuana grow houses throughout South Florida. In 2009, a large quantity of marijuana belonging to the organization was stolen. Members of the organization set out to find the people responsible for the theft. On June 28, 2009, Gilberto Santiesteban, Jr., Norge Manduley, along with co-conspirators Derrick Santiesteban, and Juan Felipe Castañeda kidnapped the individual who they thought was responsible for the theft of the marijuana. During the abduction, the individual was shot and killed.
Gilberto Santiesteban Jr. was sentenced to 360 months in prison, to be followed by 5 years of supervised release after having previously pled guilty to conspiracy to possess with the intent to distribute marijuana, conspiracy to commit money laundering, and conspiracy to commit kidnapping (Counts 1, 2, and 3).
Darvis Santiesteban was sentenced to 262 months in prison, to be followed by 5 years of supervised release after having previously pled guilty to Counts 1 and 2 of the indictment. Count 1 charged him with conspiracy to possess one thousand (1,000) or more marijuana plants with the intent to distribute and Count 2 charged him with conspiracy to commit money laundering.
Gilberto Santiesteban, Sr., was sentenced to 120 months in prison, to be followed by 5 years of supervised release after having previously pled guilty to Count 1 of the indictment charging him with conspiracy to possess 1,000 or more marijuana plants with the intent to distribute.
Norge Manduley was sentenced to 240 months in prison, to be followed by 5 years of supervised release after having previously been convicted at trial of one count of conspiracy to possess less than one hundred (100) marijuana plants with the intent to distribute.
Tomy Gonzalez was sentenced to 195 months in prison, to be followed by 5 years of supervised release after having previously pled guilty to one count of conspiracy to possess one thousand (1000) or more marijuana plants with the intent to distribute.
Lisa Gonzalez was sentenced to 146 months in prison, to be followed by 5 years of supervised release after having previously pled guilty to one count of conspiracy to possess one thousand (1000) or more marijuana plants with the intent to distribute.
The following individuals were previously sentenced for their participation in the conspiracy:
Derrick Santiesteban was sentenced to life in prison on charges of drug, money laundering, and kidnapping with death resulting.
Juan Felipe Castañeda was sentenced to 360 months in prison, to be followed by 5 years of supervised release, on charges of conspiracy to possess with the intent to distribute marijuana.
Alexander Santiesteban was sentenced to 262 months in prison, to be followed by 5 years of supervised release, on charges of conspiracy to possess one thousand (1,000) or more marijuana plants with the intent to distribute and conspiracy to commit money laundering.
German Silvestro was sentenced to 144 months in prison, to be followed by 5 years of supervised release. David Silva, Francisco Javier Diaz, Alejandro Pimentel, and John Villalonga were each sentenced to 120 months in prison, to be followed by 5 years of supervised release. Raul Fabian Ramirez, Jr. was sentenced to 46 months in prison, to be followed by 2 years of supervised release. Each of these defendants previously pled guilty to Count 1 of the indictment, charging them with conspiracy to possess 1,000 or more marijuana plants with the intent to distribute.
Yadira Santiesteban was sentenced to 70 months in prison, to be followed by 3 years of supervised release. Dayana Castellanos was sentenced to 37 months in prison, to be followed by 2 years of supervised release. Estrella J. Mijares was sentenced to 37 months in prison, to be followed by 1 year of supervised release. Each of these defendants pled guilty to one count of conspiracy to commit money laundering.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and Miami-Dade Police Department. The case is being prosecuted by Assistant U.S. Attorneys William Athas and Pat Sullivan.
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.
Michael James Franks Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on July 25, 2013, before Chief U.S. District Judge Dana L. Christensen, a 37-year-old resident of Browning, was sentenced to a term of:
Prison: 15 months
Special Assessment: $ 100
Supervised Release: 5 years
FRANKS was sentenced in connection with his guilty plea to failure to register as a sexual offender.
In an Offer of Proof filed by Assistant U.S. Attorney Ryan G. Weldon, the government stated it would have proved at trial the following:
On December 7, 2000, FRANKS pleaded guilty to sexual intercourse without consent and was ordered to register as a sex offender.
On April 25, 2012, law enforcement found FRANKS at a residence in Blackfoot where he had been living, but was not registered at that address.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that FRANKS will likely serve all of the time imposed by the court. In the federal system, FRANKS does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the United States Marshals Service.
Mexican National Sentenced to 7 Years for Receipt of Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that Ricardo Reyes, 33, a Mexican national, was sentenced for receiving child pornography. The Honorable Richard G. Kopf, Senior United States District Court Judge, sentenced Reyes to seven years in prison. There is no parole in the federal system. After his release from prison, if not deported, Reyes will begin a five year term of supervised release.
In October 2012 Investigators with the Nebraska State Patrol and FBI Cyber Crimes Task Force downloaded several images of child pornography from a South Omaha residence. A federal search warrant seeking evidence of child pornography was served on January 15, 2013.
Forensic analysis of Reyes’s computer revealed approximately 100 videos of child pornography. The videos included children from 2 to 9 years of age engaged in various sexual acts. Reyes admitted to downloading child pornography and keeping the child pornography he downloaded.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mexican Boat Captain Sentenced to Federal Prison After Fleeing from Coast GuardRead the Press Release
BROWNSVILLE, Texas – Jose Alejandro Carrillo, 24, of Matamoros, Mexico, has been ordered to prison following his conviction of obstructing boarding, United States Attorney Kenneth Magidson announced today along with Rear Admiral Kevin S. Cook, Eighth Coast Guard District Commander. Castillo, who has been in custody since his arrest, pleaded guilty on April 24, 2013.
Today, U.S. District Judge Andrew S. Hanen sentenced Carrillo to 15 months in prison.
Carrillo was the captain of a Mexican fishing boat, typically referred to as a “launcha,” that fled from a Coast Guard vessel attempting to detain them for an inspection on March 16, 2013. Carrillo had been fishing illegally in U.S. waters and did not want to lose his catch or the launcha. A chase on rough open seas ensued, during which Carrillo had another crewmember, Ismael Lopez-Ortiz, assist him in controlling the launcha. During the chase, the launcha twice made contact the Coast Guard vessel. Carrillo finally stopped and allowed the launcha to be boarded and inspected after Carrillo’s crew asked him to stop the flight."When vessel operators fail to stop and attempt to flee the Coast Guard, they put themselves and others at great risk," said Cook. "The Coast Guard hopes that this sentence serves as a deterrent to other operators in similar situations. We appreciate and commend the efforts of the Department of Justice and the Coast Guard Investigative Service for bringing this case forward."
Carrillo will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case, investigated by the Coast Guard Investigative Service, was prosecuted by Assistant United States Attorney Joseph Leonard.
Mercer Co. Man Pleads Guilty to Federal Mine Safety ViolationRead the Press Release
BLUEFIELD, W. Va. – A Mercer County man who falsified mandatory mine safety reports while employed at several West Virginia mining operations pleaded guilty today to a federal charge, announced U.S. Attorney Booth Goodwin. Craig Belcher, 36, of Bluefield, W.Va., pleaded guilty to providing a false statement, representation and certification in a Mine Safety and Health Administration (MSHA) document.
In January 2009, Belcher was hired to work as an underground mine foreman at Spartan Mining Company’s Road Fork No. 51 mine located in Wyoming County. Also in February 2009, Belcher was hired to perform mine foreman duties at Frasure Creek’s Mine No. 15 located in Fayette County. Belcher also performed similar foreman duties in May 2009 at Pay Car’s Mine No. 58 in McDowell County, and, in July 2010 at Double Bonus’s Mine No. 65 in Wyoming County.
Between January 27, 2009 and July 13, 2010, Belcher signed pre-shift and on-shift reports which indicated that he had properly examined particular sections at each mine. Belcher was not certified as a foreman when he completed the mine reports. Belcher also falsified information on pre-shift and on-shift reports by using foreman’s numbers that did not belong to him.
Belcher faces up to five years in prison and a $250,000 fine when he is sentenced on December 2, 2013 by Senior United States District Judge David A. Faber.
The investigation was conducted by MSHA. Assistant United States Attorney Blaire Malkin is in charge of the prosecution.
Medical Center Inmate Pleads Guilty to Assaulting Federal EmployeeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that an inmate at the U.S. Medical Center for Federal Prisoners Springfield, Mo., has pleaded guilty to assaulting a federal employee.
Willard Begay, 33, pleaded guilty before U.S. Magistrate Judge David P. Rush on Friday, July 26, 2013, to the charge contained in a Nov. 7, 2012, federal indictment.
Begay admitted that the assault occurred while he was meeting with a federal correctional counselor on Oct. 1, 2012. Begay was escorted to the counselor’s office to discuss some issues he had with other inmates as well as Begay’s transfer to another unit. The counselor advised Begay that the best situation would be for him to go to a locked unit where he would be removed from the problems.
At the conclusion of their session, the counselor asked Begay to place his hands behind his back so he could apply hand restraints. Begay placed his hands behind his back, and the counselor started to apply a cuff to Begay’s left wrist. Instantly, Begay turned around and hit the counselor in the face with a closed fist. The counselor fell back about three steps, stunned and dazed from the punch. Begay then grabbed a nearby computer printer and threw the computer printer. The combination of Begay’s closed-fist punch and the throwing of the computer printer caused the counselor to sustain a broken orbital bone, lacerations requiring stitches and bruising. Additional staff members assisted in apprehending Begay and taking the counselor to the medical center’s emergency room.
Under federal statutes, Begay is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the FBI, the U.S. Medical Center for Federal Prisoners and the Federal Bureau of Prisons.
McLaughlin Woman Charged with Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, woman has been indicted by a federal grand jury.
Rhonda Brown, age 41, was indicted on July 17, 2013, for Assaulting, Resisting and Impeding a Federal Officer. Brown appeared before U.S. Magistrate Judge William D. Gerdes on July 26, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release, an additional 2 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation, and Brown is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Brown was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Longmont Man and Business Sentenced for Illegally Discharging Sewage into the Union ReservoirRead the Press Release
DENVER – John Albert Paquette, age 53, of Longmont, Colorado, and his company, East Point, LLC, have been sentenced today by Chief U.S. District Court Judge Marcia S. Krieger for illegally discharging sewage into the Union Reservoir, the U.S. Attorney’s Office and the Environmental Protection Agency (EPA) Criminal Investigation Division (CID) announced.
Paquette was sentenced to pay a $10,000 fine. His company, East Point, LLC, was also sentenced to pay a $10,000 fine.
On March 19, 2013, Paquette and East Point were charged by Information. On April 4, 2013 both defendants entered guilty pleas before Chief Judge Krieger. Paquette and East Point were sentenced on July 29, 2013.
According to court documents, on June 20, 2012, Paquette and East Point, LLC, knowingly discharged 1,000 gallons of raw sewage from a hose into the Oligarchy Ditch, which flowed into the Union Reservoir, located in Longmont, Colorado. The sewage came from Paquette’s nearby self-storage company.
“Dumping sewage into a public irrigation ditch that leads to a public water reservoir has serious environmental and health consequences,” said U.S. Attorney John Walsh. “The defendant in this case now knows there are criminal penalties for his conduct.”
“Illegally discharged sewage can sicken people, fish and wildlife,” said Jeffrey Martinez, Special Agent in Charge of EPA’s criminal enforcement program in Colorado. “This case shows that those who try to save a buck by cutting corners will be vigorously prosecuted.”
This case was investigated by the Environmental Protection Agency Criminal Investigation Division.
The defendants were prosecuted by Assistant U.S. Attorney Suneeta Hazra.
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Leaders in A $3 Million Marijuana and Money Laundering Conspiracy Each Sentenced to over 10 Years in PrisonRead the Press Release
Greenbelt, Maryland - U.S. District Judge Alexander Williams, Jr. sentenced Jose Valenzuela, age 59, and his wife Beatriz Valenzuela, age 56, both of Nogales, Arizona, today to 137 months and 125 months in prison, respectively, each followed by five years of supervised release, for conspiracy to distribute more than 1,000 kilograms of marijuana and for a money laundering conspiracy. The Valenzuelas also forfeited bank accounts worth $1,265,740.65 and $970,000 in cash.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief Mark A. Magaw of the Prince George’s County Police Department.
“This case is an excellent example of how the teamwork between HSI and the Prince George’s County Police Department in dismantling a drug trafficking and money laundering organization can benefit our communities,” said William Winter, HSI special agent in charge in Baltimore. “HSI works aggressively to keep illegal drugs out of our communities, and to dismantle the criminal networks that profit from drug trafficking and the crime that surrounds it.”
According to the Valenzuelas’ guilty pleas, between June 6, 2011 and July 9, 2012, Jose and Beatriz Valenzuela utilized package shipping businesses they owned to ship marijuana from Arizona to Maryland and received proceeds in return. Antonio Hill, Jr., coordinated the shipment of drugs from Arizona to Maryland and managed the laundering of the proceeds to the sources of supply in Arizona, with the assistance of his brother, Erico Hill, who also coordinated the distribution of the marijuana in Maryland. Conspirators James Lewis, Jr., Ernest Rawlings, Jr., Errol Comma and Jane Nkemateh all assisted in the receipt of packages containing marijuana from Arizona. Lewis and Kenneth Davis further assisted in the repackaging of marijuana for distribution in Maryland, and the laundering of the proceeds to the sources of supply in Arizona. On July 11, 2012, law enforcement executed search warrants at the Valenzuelas’ home and businesses. They recovered $970,000 in cash from their home and more than 750 pounds of marijuana from the businesses.
According to their plea agreements, in order to evade IRS filing requirements for transactions involving more than $10,000 in cash, and conceal from the government large cash transactions by narcotics dealers, Jose and Beatriz Valenzuela arranged for Hill and other conspirators to deposit the proceeds of the conspiracy into bank accounts they controlled, with each transaction being less than $10,000. Some of those accounts were in the names of third parties.
Antonio Hill, Jr., a/k/a NuNu, age 33, of Largo, Maryland; Erico Hill, a/k/a Rico, age 31, of Hyattsville, Maryland; James Lewis, Jr., a/k/a Little Man, age 23, of Hyattsville; Kenneth Davis, a/k/a Benny, age 25 of Hyattsville; Ernest Rawlings, Jr.,a/k/a Junior, age 30, of Riverdale, Maryland; and Errol Comma, a/k/a E, age 31, of Lanham, Maryland, have all pleaded guilty to their roles in the conspiracy and are awaiting sentencing. Jane Nkemateh, a/k/a Jayne Nekematah, age 29, of New Carrollton, Maryland, also pleaded guilty and was sentenced to two years in prison and ordered to forfeit bank accounts worth $1,265,740.65.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, HSI Phoenix and the Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Mara Zusman Greenberg and Christen A. Sproule, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Largo Puppeteer Sentenced to 20 Years in Federal PrisonRead the Press Release
Tampa, FL - U.S. District Judge James D. Whittemore today sentenced Ronald William Brown (58, Largo) to 20 years in federal prison for receipt and possession of child pornography. In addition, he was sentenced to a lifetime of supervision, following his release from prison. The court also ordered Brown to forfeit his computer equipment and phone which were used to commit the offenses. On March 25, 2013, Brown pleaded guilty to five counts of receiving child pornography and three counts of possessing child pornography.
According to court documents, approximately on May 23, 2012, Michael Arnett was arrested by Homeland Security Investigations special agents in Roeland Park, Kansas for the production of child pornography. This investigation revealed that Arnett, had images including bondage-type photographs, involving four child victims. Previously, on May 15, 2012, a search warrant had been executed at Arnett's residence and computers were seized. A forensic examination of Arnett's computers revealed that he had been communicating and exchanging child pornography materials with other individuals using online chat programs, as well as engaging in extremely graphic discussions regarding the kidnaping, sexually abuse, murder, and eating of children. One of the individuals with whom Arnett discussed these acts was Ronald William Brown.
On July 19, 2012, law enforcement agents conducted a search of Brown's residence in Largo, Florida. During the search, agents seized multiple pieces of electronic media, including, but not limited to, a computer, various CD/DVDS, micro disks, cameras and a thumb drive. A forensic review of Brown's electronic media showed that he possessed hundreds of images of child pornography and child erotica, including various images showing children being bound and tortured. Additionally, Brown had hundreds of images of deceased children. In chats with various individuals, Brown discussed abducting, torturing, and murdering children.
“Brown, a church puppeteer, lived a double life,” said Shane Folden, deputy special agent in charge of Homeland Security Investigations Tampa. “Behind closed doors, he had a sick obsession that focused on children. Let this case be an example to other child predators. We will find you, arrest you and make sure you are prosecuted to the fullest extent of the law. Homeland Security Investigations does not tolerate adults that prey on innocent children.”
Brown’s sentencing is part of Operation Holitna, an ongoing investigation led by Homeland Security Investigations that originated in Boston. In 2010, the U.S. Attorney's Office for the District of Massachusetts and HSI Boston arrested Robert Diduca on charges of producing child pornography. Diduca was convicted and sentenced to 18 years in federal prison in June 2012. Forensic analysis of Diduca's computer led investigators to the Netherlands where a Dutch national was arrested and charged with producing, distributing and possessing child pornography, as well as sexually assaulting 87 minors. Since that time, a worldwide network of offenders continues to be unraveled, which also included Brown. Defendants and victims continue to be identified around the world. To date, more than 160 children have been rescued and more than 50 perpetrators arrested worldwide as a result of Operation Holitna.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It was prosecuted by Assistant United States Attorney Amanda C. Kaiser.
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.
Kole Michael Parsons Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on July 26, 2013, before Chief U.S. District Judge Dana L. Christensen, KOLE MICHAEL PARSONS, a 22-year-old resident of Browning and an enrolled member of the Blackfeet Tribe, was sentenced to a term of:
Prison: 45 days
Special Assessment: $100
Supervised Release: 3 years with first 6 months in residential reenter center
PARSONS was sentenced in connection with his guilty plea to burglary.
In an Offer of Proof filed by Assistant U.S. Attorney Ryan G. Weldon, the government stated it would have proved at trial the following:
On October 30, 2012, Blackfeet Tribal Security notified the FBI that the Blackfeet Tribal Offices were burglarized over the weekend of October 26, 2012, through October 28, 2012. Multiple items were reported missing, including a 9 mm pistol, a Mac Book Pro laptop, a GPS unit, and a camera.
A Tribal Security officer surveyed the offices and observed signs of forced entry at several locations. The officer then went to review video surveillance for the previous weekend. During the review, the officer observed PARSONS enter the Tribal Offices, pass through the halls, and enter and exit various offices. The officer identified the intruder as PARSONS without hesitation, stating that he "knew it was him right off the bat."
The officer knew PARSONS as he had seen him visit a relative of PARSONS at the office every other day for the last month and had seen PARSONS "around" for approximately four years.
Specifically, the video shows PARSONS holding a laptop, "several duffel bags," and he is seen entering and exiting various offices, either using keys or prying open the doors. PARSONS obtained the keys by stealing them from his relative's purse.
When PARSONS spoke with his relative, he told her that he indeed broke into the Blackfeet Tribal Offices and stole a pistol from the Tribal Security Office. PARSONS then stated that he sold the pistol to a drug dealer while at the grocery store. The gun has not been recovered.
When interviewed by law enforcement, PARSONS admitted that he went to the Tribal Security Office and took a 9 mm pistol, 2 clips, and 2 boxes of bullets. He maintains that he only took a weapon and ammunition-nothing else.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that PARSONS will likely serve all of the time imposed by the court. In the federal system, PARSONS does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
KC Woman Sentenced for Fraud, Identity TheftRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman was sentenced in federal court today for mail fraud and aggravated identity theft in a scheme to fraudulently rent apartments and a business office, lease cars and open bank accounts.
Deshonda Latrice Anderson, 25, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner to five years and six months in federal prison without parole. The court also ordered Anderson to pay $39,976 in restitution to her victims.
Anderson moved to Kansas City from Texas in February 2012. Between February and June 2012, Anderson used pseudonyms, fake and stolen Social Security numbers, forged paystubs, W-2 and W-3 forms, false employment and residence information, a sham business, bad checks and credit cards to secure for herself a line of credit, bank accounts, apartments, a business office, cars, other goods and cash. Victims of Anderson’s four-month scheme include at least 39 individuals, businesses and financial institutions.
In order to secure a place to live and transportation, Anderson defrauded at least 11 landlords and three car dealerships or leasing agencies. Anderson wrongfully appropriated for her personal use a 2011 Chevrolet Suburban, a 2012 Chevrolet Camaro and a 2012 Audi A4 in just four months. The loss to those victims of Anderson’s scheme totals at least $39,811.
Anderson incorporated Vixen Kandi Company on March 8, 2012. Vixen Kandi Company has no apparent legitimate business operation, production or revenue. Anderson used several worthless forms of payment to rent office space from Regus Management Group. The loss to Regus related to Anderson’s scheme is $669. Anderson also presented to M&I Bank false personal information and fake business information so that the bank would open four accounts for Vixen Kandi Company and treat it as a legitimate account holder. The loss to M&I Bank related to the fraud scheme totals $2,621.
Anderson opened an account at UMB Bank using her infant child’s Social Security number. The bank provided Anderson with starter checks; she conducted worthless deposits into the account and withdrew cash. UMB Bank recognized the fraudulent activity and closed the account two weeks later. Even though the account was closed, Anderson continued to present checks for goods and services drawn on the account. Anderson’s scheme resulted in a loss of $102 to UMB Bank.
Anderson engaged in a similar course of conduct at no fewer than five other banks. At each bank, Anderson used falsified personal information and checks drawn on insufficient funds to open personal accounts. She also used a fraudulent certificate of incorporation in order to open business accounts. Anderson deposited worthless checks into the accounts then withdrew cash or presented checks for payment against those accounts. The loss related to Anderson’s scheme for those banks totals at least $6,523.
This case was prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by the Kansas City, Mo., Police Department, the U.S. Postal Inspection Service, and the Social Security Administration – Office of Inspector General.
Jewelry Store Owner Pleads Guilty to Buying and Selling Stolen GoodsRead the Press Release
LAS VEGAS – A Las Vegas jewelry store owner pleaded guilty today to receiving and selling stolen goods totaling about $196,500, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Nabil Sakkab, 39, of Las Vegas, pleaded guilty before U.S. District Judge James C. Mahan to two counts of receipt and sale of stolen goods, and is scheduled to be sentenced on Oct. 28, 2013, at 10:30 a.m. Sakkab faces up to 10 years in prison and a $250,000 fine on each count.
“According to a December 2012 report prepared for Congress, organized retail crime exposes the United States to economic, public health, and domestic security dangers,” said U.S. Attorney Bogden. “Estimates of the losses to retailers range from $15 billion to $37 billion annually. Additionally, consumers end up paying for the losses in the form of higher prices on goods, and states lose the tax revenue that would otherwise be generated from the sale of these goods by legitimate retailers.”
The case was investigated by the FBI and the Las Vegas Metropolitan Police Department Special Investigations Section, and was part of a federal and local law enforcement effort to combat organized retail theft. The case is being prosecuted by Assistant United States Attorney Christina M. Brown.
According to the plea agreement, from about Sept. 20, 2011, to Feb. 3, 2012, Sakkab knowingly purchased stolen jewelry from an individual at a Las Vegas jewelry store Sakkab previously co-owned. The goods included Rolex and Tag Heuer watches stolen in other states and transported to Las Vegas prior to Sakkab’s purchase. Sakkab resold the stolen jewelry at the store and privately to third parties for personal gain. The parties agreed that the loss to the victims of the thefts is $196,500.Hull Man Sentenced to 7 Years on Child Pornography ChargesRead the Press Release
A man who distributed and received child pornography was sentenced July 24, 2013, to seven years in federal prison.
Gary Brummel, age 42, of Hull, Iowa, received the sentence after an April 17, 2013, guilty plea to one count of distributing child pornography and one count of receiving child pornography. At the guilty plea, Brummel admitted he knowingly used the Internet to distribute and receive child pornography.Brummel was sentenced in Sioux City by United States District Court Judge Donald E. O’Brien. Brummel was sentenced to 84 months’ imprisonment. A special assessment of $200 was imposed, and Brummel must also serve a five-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation and the Federal Bureau of Investigation.
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 tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-4095.
Hospital Employee and Accomplice Sentenced for Tax Refund Fraud Using Stolen Patient InformationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, Ronald Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), and Scott J. Israel, Sheriff, Broward Sheriff’s Office, announce that defendant Shalamar Major, 32, of Deerfield Beach, Florida, was sentenced today before U.S. District Judge Robin S. Rosenbaum, in connection with her previous conviction for unauthorized HIPAA disclosures, in violation of Title 42, United States Code, Section 1320d-6, and conspiracy to commit false claims, in violation of Title 18, United States Code, Section 286, in connection with a tax refund scheme that used stolen social security and other personal identifying information to file on-line tax returns claiming fraudulent tax refunds from the IRS.
At today’s hearing, Judge Rosenbaum sentenced defendant Major to 18 months in prison to be followed by three years of supervised release and ordered that she pay $15,795 in restitution to the IRS. Previously, on July 22, 2013, Judge Rosenbaum sentenced co-defendant Tanisha Wright, 27, of Deerfield Beach, Florida, to 40 months in prison followed by three years of supervised release and ordered that she pay $174,130 in restitution to the IRS. Defendant Wright had previously plead guilty to three counts of identity theft, in violation of Title 18, United States Code, Section 1028(a)(7), three counts of theft of public money, in violation of Title 18, United States Code, Section 641, one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(3), one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A, one count of theft of mail, in violation of Title 18, United States Code, Section 1708, and one count of conspiracy to commit false claims, in violation of Title 18, United States Code, Section 286.
According to documents filed and statements made in court, from January through June 2012, Wright and Major possessed and used stolen personal identifying information of others to file federal income tax returns claiming tax refunds to which they were not entitled. Specifically, defendant Shalamar Major was employed as a scheduler at the Boca Raton Regional Hospital in Boca Raton, Florida. As a scheduler, she had access to personal identification information of Boca Raton Regional Hospital patients, including their names, dates of birth, social security numbers, and other sensitive personal information. In exchange for the promise of future payments, Shalamar Major unlawfully provided Tanisha Wright sensitive personal identifying information, including names, dates of birth, and social security numbers, of numerous Boca Raton Regional Hospital patients. Tanisha Wright, upon receipt of the sensitive personal identifying information of the Boca Raton Regional Hospital patients, used this information to electronically file fraudulent federal income tax returns without the knowledge or authorization of the victims and claimed refunds to which she was not entitled from the IRS.
Tanisha Wright thereafter instructed the IRS to direct-deposit the refunds onto pre-paid reloadable debit cards that were already in her possession and had been previously stolen out of the U.S. mail. Once the debit cards had been funded by the Department of the Treasury, Tanisha Wright would convert the funds on the debit cards to cash by making withdrawals at local automated teller machines or would make personal purchases at various local businesses. Once Tanisha Wright obtained cash from the fraudulently funded debit cards, she would split the proceeds with Shalamar Major. In total, at least 57 fraudulent tax returns were filed with the IRS, requesting $306,720 in federal tax refunds.
Mr. Ferrer commended the investigative efforts of IRS-CI, the U.S. Postal Inspection Service, and the Broward Sheriff’s Office. This case is being handled by Assistant U.S. Attorney Marc Anton.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former U.S. Postal Letter Carrier Convicted of Disability FraudRead the Press Release
ANNISTON – A federal jury last week convicted a former U.S. Postal Service letter carrier for a series of offenses related to workers’ compensation fraud, announced U.S. Attorney Joyce White Vance and Special Agent in Charge Max Eamiguel, Southern Area Field Office, U.S. Postal Service, Office of Inspector General.
The jury deliberated about six hours before convicting SEAN ERIC SLATON, 40, of Anniston, on eight counts of false statements in connection with the Workers’ Compensation Program, 24 counts of Wire Fraud, and one count of theft of government property. The jury returned the verdict following a seven-day trial before U.S. District Judge Karon O. Bowdre.
"Government employees who lie and cheat to receive benefit funds that have been set aside to support injured and disabled workers are stealing from U.S. taxpayers and should expect to be prosecuted," Vance said.
“The federal workers’ compensation program is established to assist those individuals with disabilities arising from an on-the-job injury," Eamiguel said. "In 2012, the Postal Service paid $1.3 billion in costs associated with the workers’ compensation program. The vast majority of postal employees who are receiving these benefits are truly disabled and need this valuable government program to recover and eventually return to work. There are some employees, however, who abuse the system and attempt to fraudulently obtain benefits to which they are not entitled," he said. "The U.S. Postal Service, Office of Inspector General, is dedicated to investigate such instances and, with the assistance of the U.S. Attorney’s Office, prosecute those individuals to the fullest extent of the law.”
Slaton began receiving payments from the Department of Labor Office of Workers’ Compensation Programs in 2002 after he was deemed disabled from a 2001 vehicle accident that occurred while he was working as a city letter carrier in Birmingham. He was charged with devising a scheme to defraud the Department of Labor and the Postal Service beginning in July 2011 by reporting false information to the Postal Service and Department of Labor and misrepresenting and concealing his physical abilities and limitations. During the course of the investigation, Slaton was observed engaging in physical activities that exceeded his prescribed medical restrictions. Slaton also was charged with filing false reports that misrepresented his income, employment, and business activities in 2009, 2010, 2011 and 2012.The U.S. Postal Service, Office of Inspector General, investigated the case, which was prosecuted by the U.S. Attorney’s Office for the Northern District of Alabama.
Former Human Resources Manager Pleads Guilty in Theft of More Than $400,000 from Employer-Defendant Worked for Non-Profit Organization-Read the Press Release
WASHINGTON – Brenda Isom, the former human resources manager for a non-profit organization, pled guilty today to a federal charge stemming from the theft of more than $400,000 from her employer, U.S. Attorney Ronald C. Machen Jr. announced.
Isom, 47, of Silver Spring, Md., pled guilty in the U.S. District Court for the District of Columbia to a charge of interstate transportation of stolen property. The Honorable Reggie B. Walton scheduled sentencing for Oct. 25, 2013. The charge carries a statutory maximum of 10 years in prison and financial penalties. Under federal sentencing guidelines, Isom faces a likely range of 30 to 37 months in prison and a fine of up to $60,000. As part of the plea agreement, Isom has agreed to the entry of a forfeiture money judgment against her in the amount of $414,047.
According to a statement of offense signed by the government and the defendant, Isom was hired in January 2006 as human resources manager for the Leadership Conference Education Fund. The fund is a non-profit that works to promote and protect civil and human rights for people in the United States. Among other duties, Isom was in charge of managing the payroll. Those duties included electronically submitting information to a Maryland-based vendor that handled the processing of payroll payments.
Soon after taking the job, Isom began submitting information that led to additional and unauthorized payments to herself, which were well in excess of her salary. She also altered reports to conceal and disguise the fraudulently obtained payroll amounts she was receiving.
From January 2006 through June 2011, Isom received $414,047 in fraudulently obtained payroll amounts from the Leadership Conference Education Fund.
“Brenda Isom stole $400,000 in charitable funds intended to promote civil rights in our country,” said U.S. Attorney Machen. “Her crime harmed both the charity and the donors who gave their hard-earned money to support its mission. This case is another example of our continued efforts to prosecute thieves who divert charitable funds for personal gain.”
In announcing the guilty plea, U.S. Attorney Machen praised the work of those who handled the case for the U.S. Attorney’s Office, including Criminal Investigators Matthew Kutz and Juan Juarez, former Assistant U.S. Attorney Mary Chris Dobbie, and Assistant U.S. Attorney James E. Smith, who is prosecuting the case.
13-266Former Corrections Officer Sentenced to Three Months in Jail and Six Months of Home Detention for Bribery ChargeEmployee Took Cash to Smuggle Items into D.C. JailRead the Press Release
WASHINGTON – April Johnston, a former corrections officer, was sentenced today to three months in jail and six months of home detention for accepting money to bring contraband into a District of Columbia correctional facility, announced U.S. Attorney Ronald C. Machen Jr. and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Johnston, 42, pled guilty to a charge of bribery in March 2013 in the U.S. District Court for the District of Columbia. She was sentenced by the Honorable Robert L. Wilkins. Upon completion of her jail time, she will be placed on two years of probation. Judge Wilkins also ordered her to perform 100 hours of community service. Johnston also is subject to a forfeiture judgment of $2,500.
According to the government’s evidence, at the time of the offense, Johnston was employed as a corrections officer for the District of Columbia Jail and had met with individuals inside the jail to discuss the possibility of smuggling contraband to an inmate. In September 2011, she made a telephone call to a person who she believed was an associate of an inmate. In fact, however, that person was an undercover agent with the FBI.
Johnston met the undercover agent on Sept. 28, 2011 at her residence in Maryland. During the meeting, the undercover agent paid her $1,000 and gave her a computer thumb drive to smuggle into the jail. She agreed to use her position as a corrections officer to smuggle the item to the inmate in return for the money, and she later did so.
On Oct. 5, 2011, Johnston again met the undercover agent at her residence. This time, the agent paid her $1,500 along with a thumb drive and mobile USB flash drive to smuggle into the jail. Once again, she smuggled the items into the jail in return for the money.
Johnston is among three corrections employees convicted of bribery since December 2012. In December 2012, Daishawn Goodson, a former corrections officer employed by the Corrections Corporation of America (CCA), pled guilty to taking money to smuggle contraband into the District’s Correctional Treatment Facility. She was sentenced to eight months of home detention. In March 2013, Jeremiah Moorman, a former corrections officer, was found guilty of bribery and first-degree theft charges for accepting money under the promise of bringing contraband into the District of Columbia Jail. He was sentenced to two years of probation.
In announcing the sentence, U.S. Attorney Machen and Assistant Director in Charge Parlave commended the work of the agents who investigated the case from the FBI’s Washington Field Office. They also expressed appreciation for the assistance provided by the District of Columbia Department of Corrections Office of Investigative Services. Finally, they acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Nicole Wattelet and Assistant U.S. Attorney Seth B Waxman, who prosecuted the case.
13-265Former Businessman Pleads Guilty in Manhattan Federal Court to Fraud in Connection with the Financing of “Rebecca – The Musical”Read the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that one-time Long Island businessman, MARK HOTTON, pled guilty today in Manhattan federal court to defrauding the producers of the Broadway show “Rebecca – The Musical” (“Rebecca”) through an elaborate scheme involving fictitious overseas “investors” and the possibility of a last-minute $1.1 million loan. HOTTON also pled guilty to participating in a separate scheme to defraud a Connecticut-based real estate company through using many of the same deceptions he employed in the “Rebecca” fraud. HOTTON pled guilty today before U.S. District Judge John G. Koeltl.
Manhattan U.S. Attorney Preet Bharara said: “With his guilty plea today, the curtain is finally closing on Mark Hotton’s elaborately staged fraud. Though his lies and deceits were the stuff of fiction, they caused real harm to his victims, and he now faces real consequences as a result – the prospect of jail.”
According to the Complaint, the Indictment, and statements made in Manhattan federal court:
HOTTON once worked for a prominent investment bank and financial services firm, and is a former stockbroker with ties to numerous corporate entities. From September 2011 to October 2012, he engaged in two separate schemes involving fictitious individuals and entities that he created in order to defraud his victims – the producers of “Rebecca,” a musical based on the novel by Daphne du Maurier, and a Connecticut-based real estate company.
The Rebecca Fraud
As of late January 2012, the producers of “Rebecca” (the “Producers”) were trying to raise an additional $4 million in order to mount the musical on Broadway. The budget for Rebecca was between $12 million and $14 million, and in late January 2012, the producers realized they were at least $4 million short of their minimum capitalization goal. To raise additional funds, on or about February 7, 2012, the Producers’ company entered into an agreement with TM Consulting, Inc., a company HOTTON controlled. Under the agreement, HOTTON undertook to raise money for “Rebecca” in return for a fee of $7,500, plus 8% of any funds raised in excess of $250,000, plus tiered percentages of “Rebecca’s net profits.”
Over the course of the next few months, HOTTON led the Producers into believing that he had secured $4.5 million from four overseas investors – “Paul Abrams,” of Hawthorne, East Victoria; “Roger Thomas,” of St. Peter Port, Guernsey; “Julian Spencer,” of Crocker Hill, Chichester, Sussex, and “Walter Timmons,” of London, United Kingdom (the “HOTTON Investors”). HOTTON provided the Producers with purported email contact information for these individuals and also furnished the Producers with investment agreements purportedly signed by them. These individuals also purportedly wrote emails to the Producers. For example, in April 2012, “Paul Abrams,” using the email account [email protected], wrote one of the Producers an email saying, “Mr. Hotton has spoken so highly about you… I look forward to meeting you and if any further participation in the musical is attainable outside of what I’m doing personally, please let Mr. Hotton know so he can organize it thru my kids Trust.”
Between February and June 2012, the Producers made a number of payments to HOTTON. Not only did they pay the $7,500 fee in February 2012, they also paid HOTTON more than $17,000 between February and June 2012. Furthermore, in April 2012, HOTTON demanded and was paid an “advance” against his 8% commission, claiming that he needed the money to cover the costs of a purported safari he had taken with “Paul Abrams” and Abrams’ eldest son.
The investigation revealed, however, that the HOTTON Investors did not even exist. For example, some of the IP addresses used to access the email accounts of the HOTTON Investors trace back to a Manhattan location where HOTTON did business, and the businesses associated with some of the email address for the HOTTON Investors have websites whose domain names were registered to HOTTON and that he apparently created shortly before and during the fraud. HOTTON used the decoy email addresses to fabricate email correspondence between himself and the HOTTON Investors, which he then forwarded to the Producers. In some instances, he used the email addresses to communicate directly with the Producers.
In July 2012, as the Producers pressed for the HOTTON Investors to wire the money they had promised to send by July 31, 2012, HOTTON orchestrated the false illness, hospitalization, and subsequent untimely “death” of one of the main HOTTON Investors, “Paul Abrams.” HOTTON thereupon fabricated correspondence with a man named “Wexler,” who had purportedly been named the executor of the estate of “Paul Abrams.” HOTTON claimed to be meeting with “Wexler” in England in August 2012 in an effort to make sure the contribution to Rebecca was still made. However, travel records indicate that HOTTON had not left the United States since April 2012. Further, the email address used by “Wexler” was associated with a domain that was set up and registered to HOTTON.
As it became increasingly apparent that the commitments of the HOTTON Investors would fall through, HOTTON purported to try to broker a $1.1 million loan for the Producers, even offering up his own real estate and brokerage account as collateral for the loan. But there was no real loan or lender. Rather, HOTTON had simply created a second set of apparently fictional characters and entities to generate payments for himself. Among other things, HOTTON created the domain name of the title company he said could assist the Producers in obtaining the loan; invented the business, SPS Equity, purportedly making the loan; used decoy emails to fabricate correspondence with individuals, including “Gus” and “Robert Phillips” who purportedly worked for the lender; and invented a company that he said was a “commercial lending affiliate” of the bank that would facilitate his hollow offer to put up collateral for the loan. Through this part of the “Rebecca” scheme, HOTTON was able to defraud the Producers into paying in excess of $35,000 to him and companies he controlled, including $10,000 paid to him personally, as half of a fee for helping to broker the loan, and $23,000 paid to a bank account for the “lender” but which was really controlled by HOTTON’s sister and administrative assistant.
The Connecticut Real Estate Fraud
HOTTON employed a similar set of deceptive devices – including some of the same email addresses and fictitious companies used to defraud Rebecca’s Producers – in order to defraud a Connecticut-based real estate company (the “Real Estate Company”) into paying hundreds of thousands of dollars to him and companies he controlled.
Beginning in September 2011, HOTTON agreed to help the president of the Real Estate Company (the “President”) obtain financing for various business ventures. HOTTON promised that a California-based group called “Pacific Ventures” and its affiliate “Mezzanine Capital” would assist in providing a $20 million loan. HOTTON provided as an email address for a contact at “Pacific Ventures” the same email address he told the Producers was used by “Paul Abrams” and which was then purportedly used by “Walter Timmons” as well as the assistants of “Paul Abrams” in the “Rebecca” scheme. Meanwhile, HOTTON provided as an email address for a contact at “Mezzanine Capital” the same email address he told the Producers was used by “Roger Thomas,” one of the HOTTON Investors.
In March 2012, HOTTON told the President that a third company, “CPS Equity,” would be able to process the loan, but required a $200,000 upfront fee, which the President paid. CPS Equity was the company associated with, among other things, the email address used by “Paul Abrams” when communicating with Rebecca’s Producers. Following the initial $200,000 payment, HOTTON further instructed the President to make additional payments in order to secure the loan.
HOTTON, 46, of West Islip, New York, pled guilty to two counts of wire fraud, each of which carries a maximum term of 20 years in prison. In connection with his guilty plea, HOTTON also agreed to forfeit $500,000 and to make restitution payments to the victims of his schemes in the amount of $500,000. HOTTON is scheduled to be sentenced by Judge Koeltl on November 1, 2013.
Mr. Bharara praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Sarah McCallum, Edward B. Diskant, and Zachary Feingold are in charge of the prosecution.
U.S. v. Mark Hotton Indictment
Former Bookkeeper Sentenced to More Than Seven Years for Embezzling over $1.3 Million from Mountaineer RacetrackRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
WHEELING, WEST VIRGINIA – United States Attorney William Ihlenfeld, II, announced that ANITA AMBLER, 49 years old of Virginia, was sentenced on July 29, 2013, in Wheeling by Judge Frederick P. Stamp, Jr. to 87 months imprisonment to be followed by three years of supervised release. AMBLER also must pay money judgment of $1,305,090.15 as well as forfeit real estate located in Reva, Virginia, and a Dodge Nitro, both of which were assets that she purchased with proceeds from her scheme.
AMBLER, a bookkeeper at the Mountaineer Racetrack, was convicted by a federal jury trial in April of 2013 on eleven counts of “Mail Fraud”, ten counts of “Wire Fraud”, and four counts of “Transacting in Criminal Proceeds.”
Trial evidence showed that AMBLER was involved in the theft of funds from an account that was being maintained by Mountaineer Race Track and Casino (“Mountaineer”) on behalf of the Horsemen’s Association. AMBLER was employed by Mountaineer as a bookkeeper and managed and controlled the Horsemen’s account, identified as The Horseman’s Purse Account. The Horseman’s account included funds deposited by horsemen as well as proceeds from race winnings.
As part of her duties and authority, AMBLER received cash which was to be deposited into the Horseman’s account. AMBLER was also responsible for sending communications from Mountaineer to legitimate horsemen account holders and was in a position to know which horsemen- held accounts were dormant and could be subject to compromise and fraudulent use without discovery.
From in or about March of 2005 to August 6, 2010, AMBLER embezzled and stole funds including cash for her own benefit and purpose. Evidence showed that AMBLER used Brinks, which was a private commercial interstate carrier to transport deposits of cash and checks (including deposits intended for the Horseman’s account) from Mountaineer to local financial institutions. Mountaineer and AMBLER utilized an internet-based accounting system to make entries to the accounting and bookkeeping records of the Horseman’s account and AMBLER accessed the account records via the internet thus transmitting interstate wire communications.
This case was prosecuted by Assistant United States Attorneys Randolph J. Bernard and
Michael D. Stein and investigated by the Federal Bureau of Investigation.Final Two Defendants in U.S. Custody Arrested in Dreamboard Child Sex Exploitation Site Case SentencedRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced today that the last two defendants in U.S. custody arrested so far in the Dreamboard child sex exploitation and child pornography site case were sentenced by U.S. District Judge S. Maurice Hicks.
Christopher Blackford, 28, of Charleston, S.C., was sentenced to 265 months in prison with a lifetime of supervised release for participating in a child exploitation operation. According to the evidence presented at the guilty plea, Blackford joined Dreamboard Dec. 29, 2009, and placed 84 online bulletin board posts containing child pornography.William Davis, 39, of Bristol, N.H., was sentenced to 210 months in prison with a lifetime of supervised release for his part in the Dreamboard child exploitation operation. According to the evidence presented at his guilty plea, during his time on Dreamboard, Davis posted advertisements offering to distribute child pornography to other members of the board.
Blackford and Davis were charged in an indictment unsealed on Aug. 3, 2011. The charges were the result of Operation Delego, an investigation launched in December 2009 that targeted individuals around the world for their participation in Dreamboard. The board was a private, members-only, online bulletin board that was created and operated to promote pedophilia and encourage the sexual abuse of very young children in an environment designed to avoid law enforcement detection.A total of 72 individuals, including Blackford and Davis, were charged as a result of Operation Delego. To date, 57 of the 72 charged defendants have been arrested in the United States and abroad. Nine of the 57 are in the process of being extradited to the United States. Forty-seven individuals have pleaded guilty, and one was convicted after trial. The 48 individuals who have pleaded guilty or found guilty for their roles in the conspiracy have been sentenced to prison and have received sentences ranging between five years to life in prison. Three defendants have received life sentences, including the one who was convicted at trial. Fifteen of the 72 charged individuals remain at large and are known only by their online identities. Efforts to identify and apprehend these individuals continue. Operation Delego represents the largest prosecution to date in the United States of individuals who have participated in an online bulletin board conceived and operated for the sole purpose of promoting child sexual abuse, disseminating child pornography and evading law enforcement.
“There is a lot of work to be done before most, if not all, online operations like this one can be stopped,” Finley stated. “It took the work of many agencies, both domestic and international, to find and bring these defendants to justice. I want to thank all of the prosecutors and law enforcement agencies who were involved from the beginning and those who have seen this case through until now. We hope to make more arrests in the case and bring to justice all of the individuals who perpetrate such vile schemes that endanger children.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case is being prosecuted by Assistant U.S. Attorney John Luke Walker of the Western District of Louisiana and Trial Attorney Keith Becker of CEOS. The Criminal Division’s Office of International Affairs provided substantial assistance. The investigation was conducted by ICE-Homeland Security Investigations, the Child Exploitation Section of ICE’s Cyber Crime Center, CEOS, CEOS’s High Technology Investigative Unit and 35 ICE offices in the United States and 11 ICE attaches offices in 13 countries around the world, with assistance provided by numerous local and international law enforcement agencies across the United States and throughout the world.
The investigation was part of Operation Predator, a nationwide ICE initiative to identify, investigate and arrest those who prey on children, including human traffickers, international sex tourists, Internet pornographers and foreign-national predators whose crimes make them deportable.ICE encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE. This hotline is staffed around the clock by investigators. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be reported anonymously.
The following table lists all Dreamboard defendants, pleas, convictions and sentences:
Defendant
Guilty Plea
Sentencing
DateCharges To Which Defendant pleaded Guilty
Sentencing DetailsSteven Perez, aka PataPata
01/05/12
08/14/12-Conspiracy to Advertise the Distribution of Child
Pornography
235 Months in Prison/Lifetime Supervised ReleaseMatthew McKee,
aka fantom
aka fantomg
12/02/11
08/14/12
Robert Sprague, aka Jailbird
01/31/12
08/14/12-Engaging in a Child Exploitation Enterprise
LIFE in PrisonHenry Hand, aka dfx
02/15/12
08/14/12-Engaging in a Child Exploitation Enterprise
20 Years in Prison/Lifetime Supervised ReleaseRobert Cuff, aka dd0040, aka slapalot
12/01/11
07/13/12-Engaging in a Child Exploitation Enterprise
LIFE in PrisonEdward Oedewaldt, aka twelvish aka Legend
01/19/12
08/01/12-Engaging in a Child Exploitation Enterprise
-Possession of Child Pornography
38 Years in Prison/Lifetime Supervised ReleaseJerrold Wayne Wright, aka TheShadow
10/17/11
08/01/12-Conspiracy to Advertise the Distribution of Child
Pornography
17 ½ Years in Prison/Five Years Supervised ReleaseDavid Lindsay, aka Slipnslide
02/16/12
08/01/12-Engaging in a Child Exploitation Enterprise
262 Months in Prison/Lifetime Supervised ReleaseJason Simon, aka Templar aka Shuffle
04/12/12
08/02/12-Conspiracy to Advertise the Distribution of Child
Pornography
30 Years in Prison/Five Years Supervised ReleaseStephen Fairbanks, aka Zapper aka JMagic
04/12/12
08/02/12-Conspiracy to Advertise the Distribution of Child
Pornography
17 ½ Years in Prison/Lifetime Supervised ReleaseTimothy Stone, aka Kitsu
04/12/12
08/02/12-Conspiracy to Distribute Child Pornography
17 ½ Years in Prison/Lifetime Supervised ReleaseScott Spiegel, aka Zaxx aka Zaxxter
04/13/12
08/02/12-Conspiracy to Distribute Child Pornography
121 Months in Prison/Lifetime Supervised ReleaseScott Lewandowski, aka Prjb aka Koan
04/13/12
08/02/12-Conspiracy to Distribute Child Pornography
17 ½ Years in Prison/Lifetime Supervised ReleaseDesmond Meredith, aka Beast
11/10/11
04/13/12-Conspiracy to Advertise the Distribution of Child
Pornography
15 Years in Prison/Lifetime Supervised ReleaseTimothy Gentry, aka Johnny_5_is_@alive
02/01/11
05/10/11-Engaging in a Child Exploitation Enterprise
25 Years in Prison/Lifetime Supervised ReleaseLarry Ridley, aka Athf
07/14/11
10/26/11-Engaging in a Child Exploitation Enterprise
20 Years in Prison/Lifetime Supervised ReleaseDaniel Deschenes, aka Catman
01/12/12
05/04/12-Engaging in a Child Exploitation Enterprise
260 Months in Prison/Lifetime Supervised ReleaseMichael Biggs, aka tommyleejones
02/01/11
05/31/12-Engaging in a Child Exploitation Enterprise
14 Years in Prison/Lifetime Supervised ReleaseMicheal Thompson, aka SamSneed
05/10/11
09/13/11-Engaging in a Child Exploitation Enterprise
20 Years in Prison/Lifetime Supervised ReleaseCharles Christian, aka NLN
03/31/11
07/14/11-Engaging in a Child Exploitation Enterprise
265 Months in Prison/Lifetime Supervised ReleaseMichael Childs, aka Michy99
03/09/11
06/22/11-Engaging in a Child Exploitation Enterprise
30 Years in Prison/Lifetime Supervised ReleaseWilliam Barton, aka blackbart2010
09/13/11
01/05/12-Engaging in a Child Exploitation Enterprise
327 Months in Prison/Lifetime Supervised ReleaseChristopher James Luke, aka Dank0420
06/29/11
10/02/12-Engaging in a Child Exploitation Enterprise
14 Years in Prison/Lifetime Supervised ReleaseStephen Clinton Kinney, aka SocratesWasAGeek
06/29/11
10/14/11-Engaging in a Child Exploitation Enterprise
293 Months in Prison/Lifetime Supervised ReleaseGary Schneider, aka Mytink
05/31/11
01/12/12-Engaging in a Child Exploitation Enterprise
20 Years in Prison/Lifetime Supervised ReleaseRichard Chandler, aka almeda
01/15/12
04/05/12-Engaging in a Child Exploitation Enterprise
35 Years in Prison/Lifetime Supervised ReleaseCharles Pyeatte, aka Daddy-O
05/31/11
09/13/11-Engaging in a Child Exploitation Enterprise
327 Months in Prison/Lifetime Supervised ReleaseRush Frank Blankenship, aka 14yrsmax
09/01/11
12/01/11-Engaging in a Child Exploitation Enterprise
20 Years in Prison/Lifetime Supervised ReleaseDavid Michael Whitten, aka davie
06/29/11
10/05/11-Engaging in a Child Exploitation Enterprise
35 Years in Prison/Lifetime Supervised ReleaseJamil Lamar Mosley, aka clubkidsforever
07/12/11
01/17/12-Engaging in a Child Exploitation Enterprise
20 Years in Prison/Lifetime Supervised ReleaseAnthony Paul Sowders, aka ChanChadwick
07/11/11
01/05/12-Engaging in a Child Exploitation Enterprise
27 Years in Prison/Lifetime Supervised ReleaseBenet Schmidt, aka Brazthumper
12/01/11
04/05/12-Engaging in a Child Exploitation Enterprise
37 Years in Prison/Lifetime Supervised ReleaseJeffrey J. Rodriguez, aka HowardHughes
10/27/11
01/17/12-Conspiracy to Advertise the Distribution of Child
Pornography
17 ½ Years in Prison/Lifetime Supervised ReleaseJonathan Mayer, aka unclebuck81
11/10/11
07/13/12-Conspiracy to Advertise the Distribution of Child
Pornography
17 ½ Years in Prison/Lifetime Supervised ReleaseRandall Dech, aka Rudy
10/17/11
03/23/12-Conspiracy to Advertise the Distribution of Child
Pornography
17 ½ Years in Prison/Lifetime Supervised ReleaseShane Micah Turner, aka korneech08
03/23/12
07/13/12-Conspiracy to Advertise the Distribution of Child
Pornography
17 ½ Years in Prison/Lifetime Supervised ReleaseJoseph Matthew Wheeler, aka Wildman
10/27/11
04/12/12-Conspiracy to Advertise the Distribution of Child
Pornography
17 ½ Years in Prison/Lifetime Supervised ReleaseEric Myszke-Francis, aka Samsackk
10/04/11
01/12/12-Conspiracy to Advertise the Distribution of Child
Pornography
17 ½ Years in Prison/Lifetime Supervised ReleaseIvan E. Cerda, aka Mokoloko69
01/05/12
04/05/12-Conspiracy to Advertise the Distribution of Child
Pornography
262 Months in Prison/Lifetime Supervised ReleaseMilton Perry, aka Camy aka Blondie aka Lorwyn
12/01/11
04/12/12-Conspiracy to Advertise the Distribution of Child
Pornography
20 Years in Prison/Lifetime Supervised ReleaseDavid Ettlinger, aka eel
08/15/12
01/08/13-Engaging in a Child Exploitation Enterprise
45 Years in Prison/Lifetime Supervised ReleasePaul Fry, aka Lofty
01/08/13
5/9/13-Engaging in a Child Exploitation Enterprise
20 Years in Prison/lifetime Supervised ReleaseKevin Casey, aka milkduds, urinalcake
01/16/13
5/9/13-Conspiracy to Distribute Child Pornography
5 Years in Prison/5 years Supervised ReleaseTodd Stumpf, aka Winkee
03/02/12
06/11/13-Engaging in a Child Exploitation Enterprise
20 Years in Prison/5 years Supervised ReleaseWilliam Jewell, aka VladimirPutin
09/06/12
06/11/13-Conspiracy to Distribute Child Pornography
20 Years in Prison/lifetime Supervised ReleaseChristopher Blackford aka biggniche090
04/11/13
07/29/13-Engaging in a Child Exploitation Enterprise
265 Months in Prison/Lifetime Supervised ReleaseWilliam Davis, aka checkmate, timesink
04/11/13
07/29/13-Conspiracy to Advertise Child Pornography
210 Months in Prison/Lifetime Supervised ReleaseDefendant
Trial Conviction
Sentencing
DateGuilty on the Following Charges
John Wyss, aka Bones
05/17/12
09/06/12-Engaging in a Child Exploitation Enterprise
-Conspiracy to Advertise Child Pornography
-Conspiracy to Distribute Child Pornography
LIFE in PrisonFederal Courts Authorize Service of John Doe Summonses Seeking Identities of Persons Using Payment Cards in NorwayRead the Press Release
The Justice Department announced that federal courts in Minnesota, Texas, Pennsylvania, Oklahoma, Virginia and California have entered orders over the past week authorizing the Internal Revenue Service (IRS) to serve John Doe summonses on certain U.S. banks and financial institutions, seeking information about persons who have used specific credit or debit cards in Norway. The summonses are referred to as “John Doe” summonses because the IRS does not know the identity of the person being investigated. While orders have been entered in seven of these cases, the United States’ petitions in three additional cases remain pending.
The lawsuits, filed on July 19 and 22, 2013, in nine federal districts, were initiated at the request of the Norwegian government under a treaty between Norway and the United States. The treaty allows the two countries to cooperate in exchanging information that is helpful in enforcing each country’s tax laws. The United States is seeking the identities of persons who have used specific debit or credit cards issued by certain U.S. financial institutions so that Norway can determine if those persons have complied with Norwegian tax laws. A total of 18 U.S. financial institutions are identified in the government’s court filings. The filings do not allege that these financial institutions have violated any U.S. laws with respect to these accounts.
As alleged in court papers filed by the Justice Department, Norwegian authorities have reason to believe, based upon the use of payment cards in Norway that were issued by U.S. banks, that unidentified card holders may have failed to report financial account information or income on their Norwegian tax returns. Court papers cite examples where individuals using non-Norwegian payment cards have claimed to be tax residents of other countries but were found to have resided in Norway for sufficient time to subject them to taxes in Norway.
“The Department of Justice and the IRS are committed to working with our treaty partners to fight tax evasion wherever it occurs,” said Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division. “All taxpayers should know that our efforts in this area are global, coordinated and will continue.”
“These summonses reflect our continuing efforts to work with our international partners on offshore tax evasion,” said Douglas O’Donnell, IRS Assistant Deputy Commissioner, Large Business & International (LB&I). “By using effectively our existing network of bilateral agreements, countries can help one another put an end to the global practice of evading taxation by hiding assets abroad.”
The lawsuits are a part of ongoing international efforts to stop persons from using foreign financial accounts as a way to evade taxes. Courts have previously approved John Doe summonses allowing the IRS to identify individuals using offshore accounts to evade their U. S tax obligations. In the present suits, the Justice Department is seeking the identities of persons who may be attempting to hide their Norwegian taxable income in U.S. financial accounts.
Below is a list of the decided and pending cases. Copies of the pleadings will be made available on the Tax Division’s website :
- Petitions Granted:
In the Matter of the Tax Liabilities of John Does , Case No. 13-cv-01097 (C.D. Calif.)
In the Matter of the Tax Liabilities of John Doe , Case No. 13-mc-00056 (D. Minn.)
In the Matter of the Tax Liabilities of John Does , Case No. 13-mc-00024 (E.D. Va.)
In the Matter of the Tax Liabilities of John Does , Case No. 13-mc-00018 (N.D. Okla.)
In the Matter of the Tax Liabilities of John Does , Case No. 13-cv-01066 (W.D. Pa.)
In the Matter of the Tax Liabilities of John Doe , Case No. 13-mc-00657 (W.D. Tex.)
In the Matter of the Tax Liabilities of John Doe , Case No. 13-mc-00232 (W.D. Tex.)
- Pending Petitions:
In the Matter of the Tax Liabilities of John Does , Case No. 13-cv-03393 (N.D. Calif.)
In the Matter of the Tax Liabilities of John Doe , Case No. 13-mc-00301 (S.D. Miss.)
In the Matter of the Tax Liabilities of John Doe , Case No. 13-mc-00038 (D. N.H.)
More information about the Justice Department’s Tax Division is available at http://www.justice.gov/tax/ .
Related Materials:
In the Matter of the Tax Liabilities of: John Does, Norwegian Taxpayers Holding East West Bank Card, etc.
Notice of Filing Ex Parte Petition for Leave to Serve "John Doe" Summonses (PDF)
Ex Parte Petition for Leave to Serve "John Doe" Summonses; Memorandum in Support; Declaration of Cheryl Kiger; Declaration of Michael Danilack; (Proposed) Order (PDF)
Order (PDF)
In the Matter of the Tax Liabilities of: John Doe, Norwegian Taxpayer Holding Prairie Sun Bank Payment Card, etc.
Notice of Filing Ex Parte Petition for Leave to Serve "Johne Doe" Summons (PDF)
Ex Parte Petition for Leave to Serve "Johne Doe" Summons (PDF)
Memorandum in Support of Ex Parte Petition for Leave to Serve "Johne Doe" Summons (PDF)
Order (PDF)
Summons (PDF)
Declaration of Cheryl Kiger (PDF)
Declaration of Michael Danilack (PDF)In the Matter of the Tax Liabilities of: John Does, Norwegian Taxpayers Holding Bokf, N.A. Payment Card, etc.
Notice of Filing Ex Parte Petition for Leave to Serve "John Doe" Summonses (PDF)
Ex Parte Petition for Leave to Serve "John Doe" Summonses (PDF)
Memorandum in Support of Ex Parte Petition for Leave to Serve "John Doe" Summonses (PDF)
Order (PDF)
Summons (PDF)
Declaration of Cheryl Kiger (PDF)
Declaration of Michael Danilack (PDF)In the Matter of the Tax Liabilities of: John Does, Norwegian Taxpayers Holding PNC Bank N.A. Payment Card, etc.
Notice of Filing Ex Parte Petition for Leave to Serve "John Doe" Summonses (PDF)
Ex Parte Petition for Leave to Serve "John Doe" Summonses (PDF)
Memorandum in Support of Ex Parte Petition for Leave to Serve "John Doe" Summonses (PDF)
Order (PDF)
Summons (RBS Citizens, N.A.) (PDF)
Summons (PNC Bank, N.A.) (PDF)
Declaration of Cheryl Kiger (PDF)
Declaration of Michael Danilack (PDF)In the Matter of the Tax Liabilities of: John Doe, Norwegian Taxpayer Holding USAA Federal Savings Bank Payment Card, etc.
Notice of Filing Ex Parte Petition for Leave to Serve "John Doe" Summons (PDF)
Ex Parte Petition for Leave to Serve "John Doe" Summons (PDF)
Memorandum in Support of Ex Parte Petition for Leave to Serve "John Doe" Summons (PDF)
Order (PDF)
Declaration of Cheryl Kiger (PDF)
Declaration of Michael Danilack (PDF)In the Matter of the Tax Liabilities of: John Doe, Norwegian Taxpayer Holding American Express Company Payment Card, etc.
Notice of Filing Ex Parte Petition for Leave to Serve "John Doe" Summons (PDF)
Ex Parte Petition for Leave to Serve "John Doe" Summons (PDF)
Memorandum in Support of Ex Parte Petition for Leave to Serve "John Doe" Summons (PDF)
Order (PDF)
Declaration of Cheryl Kiger (PDF)
Declaration of Michael Danilack (PDF)In the Matter of the Tax Liabilities of: John Does, Norwegian Taxpayers Holding Capital One Bank, N.A. Payment Card, etc.
Ex Parte Petition for Leave to Serve "John Doe" Summons (PDF)
Order (PDF)
Education Consultant Sentenced for Tax CrimesRead the Press Release
PHILADELPHIA - Cheryl Mobley, 55, of Philadelphia, was sentenced today to three years probation and four months of home confinement for failing to timely file a federal income tax return for 2005 and for failing to file a federal income tax return for 2006. Mobley earned more than $260,000 in income during those years as a consultant for the Pennsylvania Higher Education Assistance Agency (PHEAA) and the Educational Advancement Alliance (EAA). IRS records show that Mobley filed her 2005 return on June 21, 2010, after she was under investigation by federal agents, but did not pay the balance of $23,718 in taxes due for 2005. She pleaded nolo contendere to that charge on March 20, 2012. Mobley also never filed a federal income tax return for year 2006 or paid taxes for that year. She pleaded guilty to that charge. In total, Mobley failed to report gross income totaling approximately $264,755 for 2005 and 2006, on which there is a total tax due of approximately $52,713.
In addition to the probationary term, U.S. District Court Judge Joel H. Slomsky ordered restitution to the IRS of $61,491.00, a $3000.00 fine, and a $50 special assessment.
The case was investigated by the Internal Revenue Service Criminal Investigations and was prosecuted by Assistant United States Attorney Paul Gray.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Doctor Sentenced to 57 Months in Prison for Oxycodone Distribution ConspiracyRead the Press Release
Several Co-Defendants Sentenced Last Week
TRENTON, N.J. – A doctor who admitted writing illegal prescriptions for oxycodone was sentenced today to 57 months in prison for participating in a conspiracy to distribute the medication illegally, U.S. Attorney Paul J. Fishman announced.
Jacqueline Lopresti, 52, of Fair Haven, N.J., previously pleaded guilty before Judge Freda L. Wolfson in Trenton federal court to an information charging her with one count of conspiracy to distribute oxycodone.Lopresti was the second doctor convicted in connection with this large oxycodone distribution conspiracy. Last week, Dr. Hassan Lahham was sentenced to 108 months in prison by Judge Wolfson in connection with his involvement in the same scheme. Also last week, two co-defendants, Christopher Erwin, 49, of Barnegat, N.J., and Stephen Sampson, 52, of Manahawkin, N.J., were sentenced by Wolfson to 188 months and 96 months in prison, respectively, for their roles in the conspiracy. In total, 28 people have been charged and convicted in this oxycodone distribution conspiracy.
According to documents filed in this case and statements made in court: Oxycodone is the active ingredient in brand name pills such as Oxycontin, Roxicodone and Percocet. It is a Schedule II controlled substance – meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence.
In 2009, Lopresti issued prescriptions to co-conspirators for drugs containing oxycodone, outside the usual course of medical practice and not for any legitimate medical purpose. The prescriptions were filled at various pharmacies located in and around Monmouth, Ocean, and Atlantic counties, N.J., and redistributed by others.
Erwin and Sampson were the leaders of a large-scale oxycodone distribution ring which used doctors, specifically Lopresti and Lahham, to collect prescriptions for oxycodone for which there is no medical necessity. Erwin and Sampson visited these physicians themselves and paid the physicians for medically unnecessary oxycodone prescriptions in their names and in the names of other people. Erwin and Sampson acquired the oxycodone for further distribution.
Erwin and Sampson transported various co-defendants, including: including Christopher Keosseian, 48, of Belmar; Joseph Keosseian, 46, of Belmar; James Baker, 51, of Forked River; Alex Bushman, 47, of Manahawkin; Heather Dockery, 28, of Barnegat; Wendy Galati, 45, of Toms River; Edward Gural, 37, of Barnegat; Donald Johnson, 32, of Barnegat; Bryan Lewicki, 36, of Barnegat; Gregory Mann, 50, of Surf City; Carter Nies, 36, of Barnegat; Jonathan Puggi, 35, of Little Egg Harbor; Henry Shubert, 43, of Waretown; Kyle Skora, 33, of Toms River; Crescenzo Terranova, 51, of Little Egg Harbor; and Robert Walton, III, 55, of Manahawkin; and others in multiple vehicles to various physicians and to the pharmacies afterwards. Erwin and Sampson trusted some of the defendants and paid some of the defendants to recruit and bring customers to the doctors as well as directed some of the defendants when to transport customers to the physicians and the pharmacies and which customers to transport.
In addition to the prison term, Judge Wolfson sentenced Lopresti to three years of supervised release, ordered to her to forfeit $465,000, and fined her $5,000.
U.S. Attorney Fishman credited U.S. Attorney Fishman credited the Drug Enforcement Administration's New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski, along with the special agents, diversion investigators, task force officers, detectives and intelligence analysts of the Atlantic City Resident Office, Camden Resident Office Diversion Group, Seaside Heights Police Department, Barnegat Police Department, Ship Bottom Police Department, N.J. and the N.J. DEA Tactical Diversion Squad, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney R. Joseph Gribko of the U.S. Attorney’s Office in Trenton.
13-315
Defense counsel: Lopresti: Joseph Hayden Esq., Roseland, N.J.
Erwin: James R. Murphy Esq., Princeton, N.J.
Sampson: Richard Sparaco Esq., Cherry Hill, N.J.District Man Found Guilty of First-Degree Felony Murder in 2010 Shooting in Southeast Washington-OnStar Technology Helped Police Locate Victim’s Car and Evidence-Read the Press Release
WASHINGTON - Marlon Williams, 34, Washington, D.C., has been found guilty by a jury of first-degree felony murder in the 2010 slaying of a man in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced today.
Williams was found guilty on July 26, 2013, following a trial in the Superior Court of the District of Columbia. The Honorable Russell F. Canan scheduled sentencing for Sept. 27, 2013.
According to the evidence at trial, at about 4:30 a.m. on Sept. 13, 2010, the victim, Min Soo Kang, was found on the curb in the 3500 block of Croffut Place SE, with multiple gunshot wounds. Detectives found his wallet and contacted his next of kin, who advised them that Mr. Kang, 37, owned a 2010 Cadillac Escalade equipped with OnStar GPS technology. Detectives requested that OnStar assist in tracking the vehicle. At about 5:30 p.m. on that same date, OnStar located the Escalade in the 5200 block of Ames Street NE, and engaged the remote ignition block, which prevented the ignition from re-starting the vehicle once it had been turned off.
Coincidentally, a short time later, a neighborhood resident returned home to find the disabled Escalade stopped in front of her residence. At about 7 p.m., that woman dialed 911 and alerted the Metropolitan Police Department (MPD) about the suspicious behavior of a man who, upon hearing sirens approaching in the area, exited the vehicle, quickly slammed the hood, threw something into her yard, and walked away. However, when those sirens went elsewhere, the same man returned, retrieved what he had thrown into her yard, and re-entered the vehicle, making further attempts to get it started.
Once police located Mr. Kang’s vehicle, they had it towed to the Mobile Crime Lab. Technicians lifted a palm print from the hood of the car and several fingerprints from the interior handles of the driver’s door. In addition, a search of the passenger compartment yielded a receipt for the purchase of two cartons of Newport cigarettes by Mr. Kang, in Virginia, less than three hours prior to his body being found. Three unopened packs of Newport cigarettes with Virginia tax stamps remained in the vehicle. The technicians, upon noticing apparent bullet holes in the driver’s seat, recovered three bullets from inside that seat.
Earlier, during the day of Sept.13, 2010, upon performing an autopsy on Mr. Kang, a medical examiner identified three gunshot wounds to the chest with exit wounds from his back. In addition, Mr. Kang suffered a gunshot wound to the face, which exited the left ear, another gunshot wound to the left index finger, exiting the palm of Mr. Kang’s hand, and one gunshot wound perforating his right forearm.
Detectives used the palm-print, lifted from the hood of the Escalade, and identified by the fingerprint examiner, to match that of the defendant, and the description given by the 911 caller, which also matched that of the defendant, to obtain a warrant for a search of Williams’s home. There they found the murder weapon beneath his bed. In that same bedroom, police recovered one empty pack of Newport cigarettes bearing a Virginia tax stamp.
In announcing this verdict, U.S. Attorney Machen praised the work of the MPD detectives, officers, crime scene technicians, and forensic specialists who worked on the case. He also expressed appreciation for the assistance of OnStar. In addition, he praised those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Alesha Matthews Yette, Litigation Technology Specialists Kimberly Smith, Leif Hickling, and Joshua Ellen, and Interns Arielle Barnett and Malini Malhotra.
Finally, he commended the efforts of Assistant U.S. Attorney Gary Wheeler, who secured the indictment in the case and handled the prosecution at trial.
13-264Department of Justice Files Lawsuit Against Vero Beach, Fla. Doctor and Medical Practice for Retaliating Against Deaf CoupleRead the Press Release
The Department of Justice announced today that it has filed a lawsuit against Dr. Hal Brown and Primary Care of the Treasure Coast of Vero Beach, Fla. (PCTC), alleging that the doctor and the medical practice violated the Americans with Disabilities Act by discriminating against Susan and James Liese, who are deaf. The complaint alleges that the doctor and the practice violated the ADA by retaliating against Mr. and Mrs. Liese because they engaged in activities protected under the act. The suit was filed in the U.S. District Court for the Southern District of Florida in Ft. Pierce.
According to the Justice Department’s complaint, the doctor and medical practice terminated Mr. and Mrs. Liese as patients because the couple pursued ADA claims against a hospital for not providing effective communication during an emergency surgery. The hospital is located next door to and affiliated with PCTC. The complaint alleges that the Lieses threatened the hospital with an ADA suit based on failure to provide sign language interpreter services, and upon learning of the lawsuit, PCTC and Dr. Brown, who was the Liese’s primary doctor at PCTC, immediately terminated the Lieses as patients.
“The Department of Justice is committed to enforcing the provisions of the ADA that protect an individual from retaliation when he or she opposes disability discrimination and prohibit interference with an individual in the exercise of rights granted by the ADA,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “A person cannot be terminated as a patient because he or she asserts the right to effective communication at a hospital.”
The enforcement of the ADA is a top priority of the Justice Department’s Civil Rights Division. The ADA prohibits retaliation against an individual because they oppose an act that is unlawful under the ADA and because they made a charge, testified, assisted or participated in any manner in an investigation, proceeding or hearing under the ADA. The ADA also makes it unlawful to coerce, intimidate, threaten or interfere with any individual exercising their rights protected by the ADA. The department’s Civil Rights Division enforces the ADA, which authorizes the Attorney General to investigate allegations of discrimination based upon disability. Visit www.justice.gov/crt and www.ada.gov to learn more about the ADA and other laws enforced by the Civil Rights Division.
Dallas Man, Who Pleaded Guilty to Role in Cocaine Distribution Conspiracy Linked to Los Zetas Cartel, Is Sentenced to 84 Months in Federal PrisonRead the Press Release
Defendant Also Ordered to Forfeit Vehicle, More Than $200,000 Cash and JewelryDALLAS — Omar Guerrero Acosta, aka “Pilas,” 30, of Dallas, was sentenced late last week by U.S. District Judge Jorge A. Solis to 84 months in federal prison, following his guilty plea in February 2013 to one count of conspiracy to distribute five kilograms or more of cocaine. He was also ordered to forfeit a vehicle, approximately $209,493 in cash and jewelry that had been seized. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Acosta is one of 13 defendants indicted in September 2011 for running a cocaine distribution conspiracy in the Dallas-Fort Worth area that was linked to the Los Zetas cartel. Acosta is the tenth and last defendant convicted in the case to be sentenced; two defendants remain fugitives and charges against another were dismissed. Convicted defendants and their sentences are:
Cesar Alonzo De La Rosa Jordan, aka “Gordo,” 30, 78 months
Rosendo Chappa, Jr., aka “Borado,” 39, 87 months
Joel Alejandro Rodriguez, aka “Joe,” 51, 98 months
Arturo Picaso, aka “Flaco,” 32, 152 months
Ricardo Morales, Sr., 52, 70 months
Ricardo Morales, Jr., aka “Rica,” 27, 3 years’ probation
Jose Luis Rodriguez, aka “Mas,” 41, 37 months
William Savala, aka “Will,” 39, 51 months
Reynaldo Facundo, 32, 63 monthsAcosta admitted that beginning in January 2011, cocaine supply sources in Mexico began importing multi-kilogram shipments of cocaine into the U.S. through border checkpoints near Laredo. Acosta admitted that couriers hired by the drug suppliers in Mexico delivered the cocaine to him and once the drugs arrived in Dallas, he and others maintained care, custody and control of the drugs at “stash” locations throughout the Dallas area. The total amount of cocaine that was reasonable foreseeable to him during the time of the conspiracy was more than 100 kilograms.
In July 2011, for example, Acosta’s supply source delivered approximately 119 kilograms of cocaine to him and, subsequently, multi-kilogram quantities were distributed to multiple customers, including co-defendant Rosendo Chappa, aka “”Borado.” Acosta admitted that on August 19, 2011, he and Chappa made arrangements for Chappa to deliver cash to Acosta in payment for seven kilograms of cocaine that Acosta had previously delivered to Chappa. On August 19, 2011, Acosta met Chappa at a department store parking garage in Dallas and collected approximately $159,000 in drug proceeds. Both Acosta and Chappa were arrested. After Acosta was arrested, law enforcement searched an apartment on Noel Road that he used, and they seized approximately six kilograms of cocaine and an additional $48,000 in drug proceeds that belonged to Acosta.
The FBI began its investigation into this large-scale drug trafficking organization, the Morales-Picaso Drug Trafficking Operation (MPDTO), as a result of intelligence gathered from the “Operation Greedy Grove” investigation and prosecution which targeted a large-scale cocaine, crack cocaine and marijuana distribution organization known for its violence. Operation Greedy Grove culminated in September 2010 with the arrest of 28 individuals on federal and state drug charges. Law enforcement officers seized approximately three kilograms of cocaine, 14 firearms and $210,000 in U.S. Currency and assets. The 16 defendants charged federally in that case have all pleaded guilty to their respective roles in the conspiracy have been sentenced, including defendant Gary Montgomery, who shot a Bureau of Alcohol, Tobacco, Firearms and Explosives agent during his arrest. Montgomery was sentenced to 348 months in federal prison.
The investigation revealed that the MPDTO was involved in the illegal importation of approximately 100 kilos per month from Mexico. Once the cocaine was smuggled across the border, the loads were distributed to members of the MPDTO in exchange for large sums of cash, which were then vacuum-sealed in bags, concealed in vehicles and transported back to Mexico. During the course of this investigation, law enforcement seized more than 36 kilograms of cocaine, seven firearms, 14 vehicles and nearly $300,000 cash, which was forfeited to the U.S.
This Organized Crime Drug Enforcement Task Force (OCDETF) investigation was conducted by the FBI and the Dallas Police Department. Assistant U.S. Attorney Rick Calvert was in charge of the prosecutions and Assistant U.S. Attorney John de la Garza handled the forfeitures.Customs and Border Protection Supervisor Pleads Guilty to Possession of Child PornographyRead the Press Release
BUFFALO, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that Steven Metz, 41, of Hamburg, New York, pleaded guilty before U.S. District Court Judge William M. Skretny, to Possession of Child Pornography. The defendant is a former supervisor with U.S. Customs and Border Protection. The charge carries a maximum possible sentence of ten years imprisonment, a fine of $250,000 and a term of supervised release of at least five years to life.
Assistant U.S. Attorney Marie P. Grisanti stated that on or about October 25, 2012, Steven Metz was found to possess images and videos of child pornography on his computer, at his residence in Hamburg, New York. The defendant possessed over 600 images of child pornography. Some of these files contained sadistic or masochistic conduct or other depictions of violence, and some of the children shown in the images and videos were prepubescent and under the age of 12 years. The defendant emailed child pornography to others through the Internet.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea was the culmination of an investigation on the part of Special Agents of the U.S. Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, Special Agents of the Department of Homeland Security, Office of Inspector General, under the direction of Special Agent in charge Gregory Null, and officers of the Hamburg Police Department under the direction of Chief Michael K. Williams.
Sentencing is scheduled for November 12, 2013 at 9:00 a.m. before Judge Skretny.Corning Woman Sentenced for Lying to Social Security AdministrationRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Phyllis Stevens, 51, of Corning, N.Y., who was convicted of making and submitting a false document to the Social Security Administration, was sentenced to three years of probation and ordered to pay $17,468 in restitution by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney John J. Field, who handled the case, stated that Stevens collected disability benefits from the Social Security Administration while she was gainfully employed and ineligible to receive such benefits. The defendant attempted to conceal her employment from the Social Security Administration by submitting a false document stating that she was not working. As a result, Stevens collected $17,468 in disability benefits that she was not entitled to receive.
The sentencing is the culmination of an investigation on the part of Special Agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Edward J. Ryan.Columbia County Man Indicted on Federal Charge of Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida - Acting United States Attorney A. Lee Bentley, III announced today that John George Sessine (53, Lake City) has been indicted by a federal grand jury in Jacksonville on child pornography charges. Sessine is charged with three counts of receiving child pornography. On each of the receipt counts, he faces a mandatory minimum of not less than 5 years, up to 20 years in prison. Sessine was taken into federal custody on July 29, 2013 and is currently in the custody of the U.S. Marshals Service. His arraignment and detention hearing is scheduled for August 1, 2013 at 2:30 p.m. before U.S. Magistrate Judge Joel B. Toomey at the U.S. Courthouse in Jacksonville.
According to the indictment, Sessine did knowingly receive visual depictions of a minor engaged in sexually explicit conduct over the Internet, on three separate occasions. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Columbia County Sheriff’s Office, and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
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.
Cobb County Bus Driver Sentenced for Producing Child PornographyRead the Press Release
Defendant’s Involvement in Church Youth Group Provided Access to Victim
ATLANTA - Stanley Keith Johnson has been sentenced for producing, receiving and possessing child pornography.
“As a school bus driver and church youth group volunteer, this defendant had access to some of the most innocent and vulnerable members of society,” United States Attorney Sally Quillian Yates said. “He downloaded child pornography and took explicit photographs of a fatherless young boy he was trusted to mentor. Children are not sexual objects, and persons who see them that way can expect to be caught and go to prison.”
“The U.S. Postal Inspection Service is pleased with today’s sentencing. As long as child predators use the U.S. mail to exploit children, Postal Inspectors will continue to target those responsible. The use of the U.S. mail to victimize children will not be tolerated, plain and simple,” said Keith Morris, Postal Inspector in Charge of the Atlanta Division.
“Individuals such as Mr. Johnson, who gain the confidence of children through a position of trust in order to victimize children, will be thoroughly investigated and held accountable,” said Vernon Keenan, Director of the Georgia Bureau of Investigation.
According to United States Attorney Yates, the charges and other information presented in court: From November 2010 to April 2011, the defendant placed orders with a foreign company for approximately 180 DVDs containing videos of nude boys between the ages of 8 and 14. He received those videos through the United States mail. A federal search warrant executed at his house in Mableton, Ga., in December 2012, revealed that he not only had received the videos but that he possessed child pornography on his home computer. A forensics examination of the computer showed that he had produced images of child pornography going back to May 2004. The victim was an 8-year-old child whom the defendant had befriended at his church, where he volunteered to work with the youth group and especially with young boys with no fathers in their lives.
After the search warrant was executed, Cobb County Public Schools fired the defendant from his position as a bus driver and bus driver supervisor. The defendant had been given a work computer to use for his supervisory duties. After he was fired, Cobb County Public Schools looked at the computer and saw that the defendant had downloaded images of child pornography on it. He also used his work computer to check on the delivery status of the child pornography videos that he had ordered.
Johnson, 57, of Mableton, Ga., was sentenced to 15 years in prison to be followed by a lifetime of supervised release. Johnson was convicted of these charges on April 26, 2013, after he pleaded guilty.
This case was investigated by the United States Postal Inspection Service with assistance from the Georgia Bureau of Investigation and the Cobb County Police Department.
Assistant United States Attorney Paul R. Jones prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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.
Cedar Rapids Drug Felon Sentenced to Almost Twenty-Two Years' Imprisonment on Convictions for Unlawful Possession of Ammunition and Possession of Crack Cocaine with Intent to DistributeRead the Press Release
A Cedar Rapids man with two prior drug trafficking convictions under different names was sentenced today to almost twenty-two years in federal prison.
Gregory Givens, age 29, from Cedar Rapids, Iowa, received the prison term after a May 21, 2013, jury verdict finding him guilty of one count of possession of ammunition by a felon and one count of possession of crack cocaine with the intent to distribute.
The evidence at trial showed that on October 7, 2010, Givens was stopped by a Cedar Rapids police officer for a traffic violation. When conducting the traffic stop, officers smelled, then recovered a large quantity of marijuana and a box of 9mm ammunition from inside the car. Givens provided the police officer a false name and identification and lied about his criminal history. Later investigation showed Givens had twice been convicted in 2002 in Cook County, Illinois, under two different names, of felony possession of cocaine with intent to deliver.
The evidence also showed that on December 22, 2010, Cedar Rapids police officers executed a search warrant at an apartment where Givens was staying. As officers entered a bedroom, they found Givens with his hand in between the mattress and the headboard of the only bed in the room. During the search of the bedroom, officers found a large quantity of marijuana inside the mattress where Givens had his hand and crack cocaine on the floor where Givens was standing. Givens again provided a different false name to officers when he was arrested. Givens’ identity on all of his convictions and arrests was confirmed through fingerprint analysis.
Givens previously pled guilty to possession of marijuana with intent to deliver in Iowa District Court for the marijuana found on October 7 and December 22, 2010.
During his trial, Givens refused to acknowledge the jurisdiction of the United States District Court, refused to participate in his trial, and refused to be in the courtroom. At sentencing, Givens was removed from the courtroom for being disruptive.
Givens was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Givens was sentenced to 262 months’ imprisonment. A special assessment of $200 was imposed. He must also serve a six-year term of supervised release after the prison term. There is no parole in the federal system.
Givens is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was prosecuted as part of Project Safe Neighborhoods, a cooperative local, state and federal program aimed at the enhanced prosecution of gun crimes. The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Cedar Rapids Police Department, the Bureau of Alcohol, Tobacco, and Firearms and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-55.
Butler County Woman Sentenced to Prison, Ordered to Pay Restitution for Embezzling from Health Care ProviderRead the Press Release
PITTSBURGH, Pa. - A Butler County resident has been sentenced to 15 months incarceration, and ordered to pay restitution in the amount of $66,443.50, in federal court on her conviction of embezzlement in connection with health care, United States Attorney David J. Hickton announced today.
United States District Judge Arthur J. Schwab imposed the sentence on Jennine M. Prince, 42, of Valencia, Pa.
According to the information presented to the court, Prince committed this offense while she was on pretrial release in another embezzlement case against her. That case involved her embezzling approximately $500,000 from Ironworkers Local 3. She was hired by Office Based Anesthesia Solutions, Inc. (OBAS) in Cranberry, Pa., in May 2010 and worked there until Sept. 29, 2011, when her thefts were discovered. During her employment at OBAS, she was responsible for making bank deposits of cash of co-payments received from patients. She pocketed some of the cash every day that she worked.
Assistant United States Attorney Nelson P. Cohen prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Jennine M. Prince.
Brentwood Woman Sentenced to 5 Years Probation for Minor Role in Oxycodone RingRead the Press Release
PITTSBURGH, Pa. - A resident of Brentwood, Pa., has been sentenced in federal court to five years probation, which will include one year of home detention and 150 hours of community service, on her conviction of conspiracy to distribute controlled substances and to acquire controlled substances by fraud, forgery, deception and subterfuge, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Brittany Lee Preston, 23.
According to information presented to the court, Preston conspired to obtain oxycodone by fraud and forgery and to then distribute the oxycodone. She had a minor role in the offense compared to the role of her then boyfriend, Jeffrey Mackewich, who was the leader of the oxycodone ring.
Prior to imposing sentence, Judge Hornak stated that the support of her current employer and the fact that she has overcome her addiction to oxycodone were important facts in his decision.
Assistant United States Attorney Stephen R. Kaufman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Drug Enforcement Administration for the investigation leading to the successful prosecution of Preston.
Beth Israel Deaconess Medical Center to Pay $5.3 Million to Resolve Improper Medicare ClaimsRead the Press Release
BOSTON – United States Attorney Carmen M. Ortiz and Susan J. Waddell, Special Agent in Charge of the Department of Health & Human Services, Office of Inspector General announced today that Beth Israel Deaconess Medical Center (BIDMC), a teaching hospital located in Boston, has agreed to pay the United States $5.315 million to settle allegations that it violated the False Claims Act by billing Medicare for inpatient admissions that should have been billed as lower reimbursed outpatient or observation services. The improper claims were submitted from June 1, 2004, through March 31, 2008.
The settlement resolves government allegations that BIDMC inappropriately submitted claims to Medicare for one-day stay inpatient admissions for patients with congestive heart failure, chest pain, and certain digestive and nutritional disorders. These claims should have been billed as observation services as the patients were briefly admitted for the limited purpose of observation and discharged the next day. In addition, the settlement resolves allegations that BIDMC submitted claims to Medicare for less-than-one day (zero day) stays that should have been billed as outpatient or observation services. Medicare reimburses hospitals, like BIDMC, at significantly higher amounts for inpatient admissions compared to outpatient or observation services. BIDMC has not admitted liability or wrongdoing in connection with the settlement.
“Today’s settlement furthers two critical purposes: ensuring that precious federal health care dollars are spent appropriately and in accordance with the law, and emphasizing that patient needs, not the bottom line, must be the basis for treatment decisions,” said U.S. Attorney Ortiz.
"When hospitals unnecessarily admit Medicare patients for short inpatient stays when the appropriate treatment would be outpatient or observation care, they improperly boost hospital profits at significant expense to taxpayers and patients," said HHS-OIG's Waddell. "We are committed to uprooting such schemes to eliminate waste in federal health care programs."
This settlement illustrates the government's continued 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 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 2009, the Justice Department has recovered a total of more than $14.8 billion through False Claims Act cases, with more than $10.8 billion of that amount recovered in cases involving fraud against federal health care programs.This matter was investigated by Investigator Kristen Israelson of the Department of Health & Human Services, Office of Inspector General, Boston Regional Office of Investigations. It was handled by Assistant U.S. Attorney Jennifer Cardello and Special Assistant U.S. Attorney John O’Brien, both from Ortiz’s Affirmative Civil Enforcement Unit, and Senior Trial Counsel Marie Bonkowski of the Commercial Litigation Branch of the Justice Department's Civil Division.
Bao Pham, D.O., and AccMed Healthcare Systems, LLC, d/b/a Florida Spine Care and Pain CenterRead the Press Release
JACKSONVILLE – The United States Attorney’s Office for the Middle District of Florida announced today that Bao Pham, D.O., and AccMed Healthcare Systems, LLC, d/b/a Florida Spine Care and Pain Center, have paid $448,794 to resolve allegations that they violated the False Claims Act by submitting false claims for medical services to the Medicare and federal Office of Workers Compensation (OWCP) programs. Pham is an osteopathic physician who focuses his practice on pain management and who, through Florida Spine Care and Pain Center, provides treatment to Medicare recipients for various conditions and to federal employees who are suffering various types of on-the-job injuries. Florida Spine Care and Pain Center is a Florida corporation located in Clay and Duval Counties in Florida.
Medicare benefits are available to eligible patients who are disabled or are aged 65 and older and who are enrolled in Part B of the Medicare Program to obtain benefits from participating healthcare providers. The federal OWCP benefits are available to federal civilian workers who are injured at work or who have acquired an occupational disease.
Today’s settlement resolves allegations that, between January 1, 2004, and December 31, 2008, Pham and Florida Spine Care and Pain Center submitted false Medicare and OWCP claims for non-reimbursable procedures and services by upcoding and unbundling medical services provided to beneficiaries of these two federal programs. The government alleged that Pham and Florida Spine Care and Pain Center upcoded a non-reimbursable procedure, performed in-office, as a surgical procedure and further routinely unbundled claims for certain pain management services in order to obtain reimbursement that would be higher than if properly submitted.
“This settlement represents another notable achievement in our battle against health care fraud in this district,” stated A. Lee Bentley, III, Acting United States Attorney for the Middle District of Florida. “Civil health care fraud enforcement is, and will continue to be, one of our top priorities.”
“Billing Medicare for one procedure but actually providing another, much cheaper procedure – as Pham allegedly did – is plain and simple fraud,” said Christopher B. Dennis, Special Agent in Charge, Office of Inspector General (OIG), Department of Health and Human Services, Miami region. “When providers pad their pockets at Medicare’s expense, they can expect the OIG to investigate and hold them responsible.”
“This settlement demonstrates the OIG’s commitment to investigate those who defraud the U.S. Department of Labor’s Federal Employees’ Compensation Program by billing for services that were not rendered. We will continue to work with our law enforcement partners to investigate these types of schemes,” said Richard Walker, the Special Agent-in-Charge of the Atlanta Regional Office of the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
These allegations arose as a result of information received from a fraud investigator at a major health insurance carrier, which was simultaneously conducting an investigation into Dr. Pham’s billing practices.
This matter was handled by the U.S. Attorney’s Office for the Middle District of Florida, the Office of the Inspector General for the Department of Health and Human Services, the Office of the Inspector General for the Department of Labor and the Office of Inspector General for the United States Postal Service.
This matter was settled prior to filing suit by the United States of America. The claims settled by this agreement are allegations only; there has been no determination of liability.Auto Mechanic Who Sold Prescription Pain Pills from A Huntington Shop Sentenced to Nearly 6 Years in PrisonRead the Press Release
Vernon Browning funded and organized more than two dozen trips to Georgia to get painkillers to sell
HUNTINGTON, W.Va. – An automotive shop technician who led a scheme to obtain prescription painkiller pills from Atlanta and later had them brought back to Huntington to sell was sentenced today to five years and ten months in federal prison, announced U.S. Attorney Booth Goodwin. Vernon Browning, 45, of South Point, OH, previously pleaded guilty in April to distribution of oxycodone. Browning began funding and organizing dozens of trips to Atlanta to obtain oxycodone and oxymorphone pills in 2008.
The pills were later brought back to the Little Garage on the Corner automotive shop in Huntington where Browning and his associates stored and illegally sold the pills.
U.S. Attorney Booth Goodwin said, “Mr. Browning evidently wasn’t just fixing cars; he was fueling an illegal pill trafficking enterprise.” Goodwin continued, “Fighting the pill epidemic has been my office’s leading priority. Pill dealers will be caught and they will be prosecuted.”
In March 2012, Browning sold 18 30-milligram oxymorphone pills to a confidential informant working for the Huntington Drug and Violent Crime Task Force in exchange for $990. The illegal pill transaction took place at the garage.
During the scheme, Browning rented vehicles for the trips to Atlanta and helped associates obtain driver’s licenses in an effort to get legitimate prescriptions from Georgia doctors. Also, between January 2012 and July 2012, Browning rented hotel rooms on 32 different occasions and typically paid for the room rentals in cash.
On February 24, 2012, law enforcement agents conducted a controlled purchase of two oxymorphone pills from Browning. The transaction took place at Browning’s South Point residence. On March 3, 2013, Browning rented a vehicle and traveled to Georgia to obtain pain pills. After obtaining the pills, Browning shipped the 240 30-milligram oxycodone pills from Georgia to his South Point residence. The shipment of pills was intercepted by police.
The Huntington Violent Crime and Drug Task Force 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.
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.
Albanian Convicted for Resisting Deportation OrdersRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that Bledar Bujilici, 36, of Albania, was found guilty Friday by a federal jury for impeding or hampering his deportation. U.S. District Judge Dee D. Drell presided over the trial.
Bujilici’s trial started last Thursday and ended Friday with the jury returning the guilty verdict after deliberating for 32 minutes. Witness testimony and documents admitted at trial revealed that U.S. Immigration Enforcement Agents (IEA) brought the defendant to the Alexandria International Airport on March 1, 2012 and attempted to put him on a commercial flight. After being removed from a van, the defendant got down on the ground and would not get up. He was returned to federal prison. The defendant also refused deportation on Nov. 21, 2011 at Logan International Airport in Boston, Mass., before being transferred to a prison in Louisiana. He has been in federal custody since February 2008 when he was convicted of second degree assault.
Bujilici faces up to four years in prison, a $250,000 fine, and one year of supervised release for resisting deportation. Sentencing is set for Oct. 29, 2013.
The Immigration and Customs Enforcement - Enforcement and Removal Operations conducted the investigation. Assistant U.S. Attorney Earl M. Campbell and Special Assistant U.S. Attorney Robert J. France are prosecuting the case."Chardhi Kala: Remembering and Honoring the Victims of Violence at the Sikh Gurdwara in Oak Creek"Read the Press Release
United States Attorney James L. Santelle of the Eastern District of Wisconsin announced today that a special observance will be held on Friday, August 2, 2013 from 1:30 p.m. to 3:00 pm in remembrance and honor of the hate crimes victims of violence at the Sikh Gurdwara in Oak Creek. This special community gathering will be held in the Ceremonial Courtroom (Room 390) of the Historic Federal Courthouse, located at 517 East Wisconsin Avenue in Milwaukee.
In addition to remarks by United States Attorney Santelle, leadership representatives of the Sikh Gurdwaras in Oak Creek and Brookfield will offer reflections on the events of early August of 2012, and representatives of the families of those martyred and injured in the violence will be specially recognized and participate in the program. The Honorable Stephen Scaffidi, Mayor of the City of Oak Creek, and Ms. Patricia Ferrick, Acting Special Agent in Charge of the Federal Bureau of Investigation, will also offer remarks about the significance of the violence and the perspectives of the community one year later.
The memorial observance will include the performance of special commemorative music performed by children and adult members of the Oak Creek Gurdwara. Mr. Thomas Heinen, the Executive Director of the Interfaith Conference of Greater Milwaukee, will also be offering a reflection on behalf of the diverse faith community in Wisconsin and throughout the nation.
The program will be followed by an informal community gathering in Room 398 of the Historic Federal Courthouse, during which participants and attendees will have an opportunity to engage in informal discussion and share thoughts. In that setting and in the entryway atrium of the building, informational items and photographs about the contributions of Sikhs to the history of the world and to the life and livelihood of the United States will be on display for viewing.
Because of the solemn, contemplative nature of the observance, United States Attorney Santelle requests that the media be respectful of the wishes and interests of the family members of the victims as well as other Gurdwara congregation members and not affirmatively solicit them for on-camera or other interviews in this setting. If requested, Public Information Officer Dean Puschnig will attempt to arrange interviews with victim family members who indicate that they would be willing to be interviewed.
United States Attorney Santelle noted that this observance is among several gatherings and events organized and sponsored in partnership with the leadership of the Sikh Community and of the City of Oak Creek beginning on Friday, August 2, and continuing through Monday, August 5. Information about other, related programs may be obtained from the Sikh Temple of Wisconsin at www.sikhtempleofwisconsin.com.
Mr. Puschnig will meet all representatives of the media at the employee entrance to the building on Jackson Street between 12:30 p.m. and 1:00 p.m. and escort them through the court house to the Ceremonial Courtroom. Arrangements will be made for a unified, common camera for recording/broadcast of the ceremony. For additional information, the general public should contact Mr. Puschnig at (414) 297-1774.
28 July 2013
Fort Worth Man, Who Ran A Hydroponic Supply Store, Is Sentenced to 37 Months in Federal PrisonRead the Press Release
DALLAS — William Luck, II was sentenced today by U.S. District Judge Jane J. Boyle to 37 months in federal prison, following his guilty plea in February 2013 to one count of failure to File IRS Form 8300. Judge Boyle ordered that he surrender to the Bureau of Prisons on August 21, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the Internal Revenue Service (IRS), one must file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business, if one’s business receives more than $10,000 in cash from one buyer as a result of a single transaction or two or more related transactions.
According to the factual resume filed in the case, Luck owned a business called Hydro Expo. Law enforcement learned that Hydro Expo was facilitating indoor marijuana cultivating operations by supplying growing equipment and supplies to persons who were illegally growing marijuana. During an undercover operation, law enforcement arranged the purchase of approximately $20,000 worth of growing equipment and supplies from Hydro Expo; Luck was clearly informed that the equipment and supplies were going to be used in an illegal indoor hydroponic marijuana cultivation operation.
In October 2009, according to the factual resume, Luck accepted $17,000 in cash from an undercover who then took delivery of the marijuana growing equipment. During that meeting, Luck stated that he would break up the $17,000 cash into smaller amounts and that he would not identify the purchasers in any paperwork. Luck never filed the required IRS Form 8300, as required by law and regulations.
According to the order setting conditions for his release, Luck is a resident of Fort Worth. According to the plea agreement filed in the case, Luck agreed to pay $17,000 to the IRS in satisfaction of restitution associated with conduct underlying his conviction.
The case was investigated by the Drug Enforcement Administration and Internal Revenue Service - Criminal Investigation.
Deputy Criminal Chief Assistant U.S. Attorney Jay Dewald was in charge of the prosecution.
27 July 2013
Richmond Man Convicted on Robbery and Firearms Charges for Three Separate RobberiesRead the Press Release
RICHMOND, Va. – Marion Carter, 58, of Richmond, Va., was convicted today by a federal jury on three counts of robbery interfering with commerce and two counts of possessing a firearm in furtherance of those robberies.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; and Carl Vasilko, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, made the announcement after the verdict was accepted by United States District Judge James R. Spencer. Carter faces a maximum term of 20 years for each of the three robberies and five years to life imprisonment on each of the three firearms charges when he is sentenced on October 28, 2013.
According to the evidence presented at trial, Carter robbed three commercial businesses in less than three weeks. The first robbery took place on November 2, 2012, at the Baskin Robbins ice cream store on Forest Hill Avenue in Richmond. The second robbery occurred on November 8, 2012, at the Fast Auto Loans store on Midlothian Turnpike in Richmond. Carter acquired approximately $900 from the first two robberies. The third robbery took place on November 14, 2012 at the FasMart convenience store on Semmes Avenue. During that robbery, the store clerks ran to the back of the store and locked themselves in the back room. Carter left the store without any money. Evidence at trial included surveillance videos from the robberies and a cell tower data analysis by the FBI.
This case was investigated by the ATF and the Richmond Police Department, with assistance from the FBI. Assistant United States Attorney Peter Duffey and Special Assistant United States Attorney Heather Hart prosecuted this case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
26 July 2013
“Professional” Medicare Beneficiary Turned Patient Recruiter Sentenced to Federal PrisonRead the Press Release
HOUSTON—Robert Glenn Baker, 57, of Houston, has been sentenced for conspiracy to violate the anti-kickback statute, United States Attorney Kenneth Magidson announced today. Baker pleaded guilty to the charge on Aug. 15, 2012.
Today, U.S. District Judge Sim Lake took into consideration Baker’s cooperation with law enforcement agencies and handed him a sentence of 18 months in federal prison followed by three years of supervised release. Baker was further ordered to pay restitution in amount of $157,359 to the Medicare Program and $16,294 to the Texas Medicaid program.Baker is a Medicare beneficiary. From March 2007 and continuing through April 2012, he visited several medical clinics in Houston and the surrounding areas which purportedly provided such medical services as physical therapy, diagnostic testing and mental health services. Baker did not have a medical need for these services, but would allow his Medicare benefits to be billed in exchange for cash. The owners and operators of the various medical clinics then submitted claims to Medicare for payment using Baker’s Medicare information.
Enticed by the money, Baker began recruiting and referring other Medicare and Medicaid beneficiaries to the clinics. The owners and operators of the clinics paid Baker a referral fee, typically in cash, for each individual he referred.
This case was investigated by agents and investigators of the Inspector General’s Office of the U.S. Department of Health and Human Service, the Texas Attorney General’s Medicaid Fraud Control Unit and the Railroad Retirement Board - Office of Inspector General.
Special Assistant U.S. Attorney Justin Blan prosecuted this case.“Professional” Medicare Beneficiary Turned Patient Recruiter Sentenced to Federal PrisonRead the Press Release
HOUSTON—Robert Glenn Baker, 57, of Houston, has been sentenced for conspiracy to violate the anti-kickback statute, United States Attorney Kenneth Magidson announced today. Baker pleaded guilty to the charge on Aug. 15, 2012.
Today, U.S. District Judge Sim Lake took into consideration Baker’s cooperation with law enforcement agencies and handed him a sentence of 18 months in federal prison followed by three years of supervised release. Baker was further ordered to pay restitution in amount of $157,359 to the Medicare Program and $16,294 to the Texas Medicaid program.Baker is a Medicare beneficiary. From March 2007 and continuing through April 2012, he visited several medical clinics in Houston and the surrounding areas which purportedly provided such medical services as physical therapy, diagnostic testing and mental health services. Baker did not have a medical need for these services, but would allow his Medicare benefits to be billed in exchange for cash. The owners and operators of the various medical clinics then submitted claims to Medicare for payment using Baker’s Medicare information.
Enticed by the money, Baker began recruiting and referring other Medicare and Medicaid beneficiaries to the clinics. The owners and operators of the clinics paid Baker a referral fee, typically in cash, for each individual he referred.
This case was investigated by agents and investigators of the Inspector General’s Office of the U.S. Department of Health and Human Service, the Texas Attorney General’s Medicaid Fraud Control Unit and the Railroad Retirement Board - Office of Inspector General.
Special Assistant U.S. Attorney Justin Blan prosecuted this case.White River Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a White River, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
First In Trouble was released to a third party custodian pending trial. A trial date has been set for September 24, 2013.
Nathan First In Trouble, age 34, was indicted on July 17, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 25, 2013, and pled not guilty to the indictment.
The maximum penalty upon conviction is up to 10 years in custody, a $250,000 fine, or both; life of supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and First In Trouble is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Tim Maher is prosecuting the case.
White River Man Charged with Assault with A Dangerous Weapon and Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a White River, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Theodore Larvie, age 23, was indicted on June 12, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 25, 2013, and pled not guilty to the charges.
The maximum penalty upon conviction is up to 10 years in custody, a $250,000 fine, or both; 3 years of supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and Larvie is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Larvie was remanded to the custody of the U.S. Marshals pending trial. A trial date has been set for September 24, 2013.
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
John Carlisle, 49, of New Haven, Indiana, pled guilty before Magistrate Judge Christopher A. Nuechterlein to the felony offense of making false statements and reports regarding mortgage loans and aiding and abetting in such conduct. Carlisle also admitted to the indictment’s forfeiture allegation. Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation.Sentencing has been set for 10/17/2013 3:30 PM before Judge Jon E. DeGuilio.This case is being prosecuted by Assistant United States Attorney Donald Schmid.
Carmen Leon, 41, of Edinburg, Texas, pled guilty before District Judge Robert L. Miller, Jr to the felony offense of conspiracy to distribute narcotics and conspiracy to commit money laundering. Carmen Leon also admitted to the indictment’s forfeiture allegation This charge was filed as a result of an investigation by the Drug Enforcement Agency.Sentencing has been set for 12/9/2013 1:30 PM before Judge Robert L. Miller Jr.This case is being prosecuted by Assistant United States Attorney William Grimmer.
Cesar Leon, 22, of Edinburg, Texas, pled guilty before District Judge Robert L. Miller, Jr to the felony offense of conspiracy to distribute marijuana and structuring transactions to evade bank reporting requirements. This charge was filed as a result of an investigation by the Drug Enforcement Agency.Sentencing has been set for 12/9/2013 1:30 PM before Judge Robert L Miller Jr. This case is being prosecuted by Assistant United States Attorney William Grimmer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Joseph Brownlee, 49, of South Bend, Indiana, was sentenced by District Judge Robert L. Miller, Jr. to 60 months imprisonment and 2 years supervised release after being found guilty of the felony offense of being a felon in possession of firearm.According to documents filed for the case, Brownlee attempted to discard a Smith & Wesson handgun during a police pursuit.Brownlee was convicted of murder in Cook County, Illinois in 1983.The defendant also has prior felony convictions for intimidation and operating a vehicle while intoxicated.As part of the sentence, the Smith & Wesson handgun was also forfeited to the United States.This case was the result of an investigation by the South Bend Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Dedrick Bufkin, 20, of Merrillville, Indiana, a defendant in the case US v Toney et al., pled guilty before District Judge Joseph Van Bokkelen to the felony offense of brandishing a firearm during a crime of violence.Sentencing has been set for 10/16/13.This charge was filed as a result of an investigation by the Federal Bureau of Investigation GRIT Task Force and the Merrillville Police Department.This case is being prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Scott Filbey, 47, of Walton, Kentucky, pled guilty before District Judge Joseph Van Bokkelen to the felony offense of production of child pornography.Sentencing has been set for 10/8/13.This case resulted from an investigation by members of the Indiana Internet Crimes Against Children Task Force, including the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Indiana State Police, the Franklin County Ohio Sheriff’s Office ICAC Task Force and the Cincinnati Police/Hamilton County Sheriff Electronics Computer Investigation Section.This case is being prosecuted by Assistant United States Attorney Jill Koster.
Raynell Vaxter, 52, of Gary, Indiana, pled guilty before Chief Judge Philip Simon to the felony offense of possession of a firearm by a convicted felon.Sentencing has been set for 10/23/13.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorneys Joshua Kolar.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Javorious Raggs, 22, of Hammond, Indiana, a defendant in the case US v Puntillo-Raggs et al., was sentenced by Senior District Judge Rudy Lozano to 2 years of probation to include 12 months on home detention and $13,910.00 in restitution after pleading guilty to the felony offense of passing counterfeit obligations.According to documents filed by the government in this case, Raggs passed the counterfeit currency in payment for “purchased” items from the victim store. He later returned many of the items “purchased” with the counterfeit currency in exchange for genuine cash or other things of value. This case was the result of an investigation by the United States Secret Service.This case was prosecuted by Assistant United States Attorney Randall Stewart.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA:
Troy Ditiway, 26, of Fort Wayne, Indiana, pled guilty before Magistrate Judge Roger B. Cosbey to the felony offense of possession of materials depicting minors engaging in sexually explicit conduct. Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation.No sentencing date has been set.This case is being prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Leroy D Wilson, Jr , 37, of Fort Wayne, Indiana, was sentenced by District Judge Theresa L. Springmann to 60 months imprisonment and 4 years of supervised release after pleading guilty to the felony offenses of distribution of more than 50 grams of crack cocaine, and possession of a firearm by a convicted felon. The court’s sentence also included an order of forfeiture. The defendant was convicted in 2002 of criminal recklessness.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Agency.This case was prosecuted by Assistant United States Attorney Tina Nommay.
Walter J. Ridley, 32, of Fort Wayne, Indiana, was sentenced by District Judge Theresa L. Springmann to 12 months imprisonment (time served) and 2 years supervised release after pleading guilty to the felony offense of being a convicted felon in possession of a firearm .According to documents filed in this case, Ridley was convicted for possession of Marijuana in 2008.In June of 2012, Ridley was found in possession of a PT140 .40 caliber handgun.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Lesley Miller-Lowery.