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19 July 2013
Virginia Man Pleads Guilty to Possession of Child PornographyRead the Press Release
WASHINGTON – Richard Mark Abbott, 62, of Chesterfield, Va., pled guilty today to a federal charge of possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Abbott entered the guilty plea in the U.S. District Court for the District of Columbia. The Honorable John D. Bates is to sentence him on Oct. 18, 2013. Abbott faces a maximum sentence of 10 years of imprisonment, as well as a potential fine of $250,000.
According to the government's evidence, on March 15, 2013, Abbott contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted an ad on a social network site frequented by individuals with a sexual interest in children. Over the next few days, Abbott engaged in online e-mail and instant messaging with the undercover officer, whom Abbott believed was the father of an under-aged girl.
During the course of their communications, Abbott sent the undercover officer ten images of child pornography. On May 2, 2013, Abbott was arrested at his residence in Virginia. Pursuant to a search warrant for the residence, law enforcement recovered various electronic devices including two computers and various external storage devices. After a forensic review of those items, law enforcement recovered over 600 images of child pornography.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director Parlave and
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Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who is prosecuting the case.U.S. Intervenes in False Claims Act Lawsuit Against<br /> Fla. Home Health Care Company and Its OwnerRead the Press Release
The government has intervened in a whistleblower lawsuit against A Plus Home Health Care, Inc., a home health care company in Fort Lauderdale, Fla., and its owner, Tracy Nemerofsky, the Justice Department announced today. The government alleges that A Plus offered referring physicians’ spouses sham marketing positions with the company to induce the physicians to refer Medicare patients for home health care services.
“Kickback schemes subvert the home health care market place and undermine the integrity of consumer choice,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division. “We will continue to hold accountable those who abuse our public health care programs at the expense of patients and taxpayers.”
The government alleges that, beginning in 2006, A Plus Home Health Care engaged in a scheme to increase Medicare referrals in the heavily saturated home health care market of southern Fla. The company allegedly hired at least seven physicians’ spouses and one physician’s boyfriend to perform marketing duties but required them to perform few, if any, actual job duties. To cover up the scheme, the government alleges, Ms. Nemerofsky generated sham personnel files, which included lists of job duties the spouses and boyfriend did not perform and performance reviews of job functions they did not complete, to give the false impression that the spouses and boyfriend were legitimate employees.
The government’s complaint also alleges that the spouses’ and boyfriend’s salaries were an inducement and reward for the physicians’ referrals of Medicare patients to A Plus Home Health Care. In fact, the government alleges the physicians’ referrals to A Plus Home Health Care spiked dramatically when the spouses and boyfriend began receiving paychecks from
A Plus, allowing A Plus to receive millions of dollars in Medicare reimbursements. For example, in 2005, before A Plus hired any referring physicians’ spouses, A Plus was allegedly reimbursed $1.1 million from Medicare for home health care services. Conversely, in 2011, when A Plus was paying salaries to the seven referring physicians’ spouses and one physician’s boyfriend, A Plus’ Medicare reimbursement allegedly reached an all-time high of $6.6 million.“We will not relent in our efforts to combat fraudulent kickback schemes, such as the no-show jobs scheme used in this case, and return dollars to the Medicare program,” said Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida. “These schemes are classic examples of the fraud and abuse that plague and threaten the financial stability of Medicare, which provides much needed services to the sick and elderly.”
According to an August 2012 Department of Health and Human Services’ Office of Inspector General report, home health services are particularly vulnerable to fraud, waste and abuse. In 2010, Medicare paid a reported $19.5 billion to 11,203 home health care agencies for services provided to 3.4 million beneficiaries.The lawsuit was filed by a former A Plus Home Health Care director of development, William Guthrie, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government and receive a share of any recovery. The act also authorizes the government to intervene in and assume primary responsibility for litigating the lawsuit, as the government has done in this case. The government previously settled with two of the couples that accepted payments from A Plus Home Health Care.
The government’s intervention in this lawsuit illustrates its emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $14.7 billion through False Claims Act cases, with more than $10.7 billion of that amount recovered in cases involving fraud against federal health care programs.
The A Plus Home Health Care investigation reflects a coordinated effort among the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Southern District of Florida, the Department of Health and Human Services’ Office of Inspector General, and the Federal Bureau of Investigation.
The lawsuit is U.S. ex rel. Guthrie v. A Plus Home Health Care, Inc., 12 CV 60629 (S.D. Fla.). The claims asserted against the defendants are allegations only, and there has been no determination of liability.
U.S. Intervenes in False Claims Act Lawsuit Against Fla. Home Health Care Company and Its OwnerRead the Press Release
The government has intervened in a whistleblower lawsuit against A Plus Home Health Care, Inc., a home health care company in Fort Lauderdale, Fla., and its owner, Tracy Nemerofsky, the Justice Department announced today. The government alleges that A Plus offered referring physicians’ spouses sham marketing positions with the company to induce the physicians to refer Medicare patients for home health care services.
“We will not relent in our efforts to combat fraudulent kickback schemes, such as the no-show jobs scheme used in this case, and return dollars to the Medicare program,” said Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida. “These schemes are classic examples of the fraud and abuse that plague and threaten the financial stability of Medicare, which provides much needed services to the sick and elderly.”
“Kickback schemes subvert the home health care market place and undermine the integrity of consumer choice,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division. “We will continue to hold accountable those who abuse our public health care programs at the expense of patients and taxpayers.”
The government alleges that, beginning in 2006, A Plus Home Health Care engaged in a scheme to increase Medicare referrals in the heavily saturated home health care market of southern Fla. The company allegedly hired at least seven physicians’ spouses and one physician’s boyfriend to perform marketing duties but required them to perform few, if any, actual job duties. To cover up the scheme, the government alleges, Ms. Nemerofsky generated sham personnel files, which included lists of job duties the spouses and boyfriend did not perform and performance reviews of job functions they did not complete, to give the false impression that the spouses and boyfriend were legitimate employees.
The government’s complaint also alleges that the spouses’ and boyfriend’s salaries were an inducement and reward for the physicians’ referrals of Medicare patients to A Plus Home Health Care. In fact, the government alleges the physicians’ referrals to A Plus Home Health Care spiked dramatically when the spouses and boyfriend began receiving paychecks from A Plus, allowing A Plus to receive millions of dollars in Medicare reimbursements. For example, in 2005, before A Plus hired any referring physicians’ spouses, A Plus was allegedly reimbursed $1.1 million from Medicare for home health care services. Conversely, in 2011, when A Plus was paying salaries to the seven referring physicians’ spouses and one physician’s boyfriend, A Plus’ Medicare reimbursement allegedly reached an all-time high of $6.6 million.
According to an August 2012 Department of Health and Human Services’ Office of Inspector General report, home health services are particularly vulnerable to fraud, waste and abuse. In 2010, Medicare paid a reported $19.5 billion to 11,203 home health care agencies for services provided to 3.4 million beneficiaries.
The lawsuit was filed by a former A Plus Home Health Care director of development, William Guthrie, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government and receive a share of any recovery. The act also authorizes the government to intervene in and assume primary responsibility for litigating the lawsuit, as the government has done in this case. The government previously settled with two of the couples that accepted payments from A Plus Home Health Care.
The government’s intervention in this lawsuit illustrates its emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $14.7 billion through False Claims Act cases, with more than $10.7 billion of that amount recovered in cases involving fraud against federal health care programs.
The A Plus Home Health Care investigation reflects a coordinated effort among the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Southern District of Florida, the Department of Health and Human Services’ Office of Inspector General, and the Federal Bureau of Investigation.
The lawsuit is U.S. ex rel. Guthrie v. A Plus Home Health Care, Inc., 12 CV 60629 (S.D. Fla.). The claims asserted against the defendants are allegations only, and there has been no determination of liability.
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.
Two Broward Residents Sentenced for Identity Theft SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announced that defendants Nathaniel Troy Maye, a/k/a Troy May, 44, and Tiwanna Tenise Thomason, 40, both of Ft. Lauderdale, were sentenced today before U.S. District Judge William J. Zloch. Maye was sentenced to 66 months in prison, followed by 3 years of supervised release. Thomason was sentenced to 5 years’ probation.
Both defendants previously pled guilty to one count of possession of 15 or more unauthorized access devices, in violation of Title 18, United States Code, Sections 1029(a)(3) and 2, and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2.
According to court documents, on January 5, 2013, a cooperating source (CS) met with Thomason and Maye. During the meeting, Maye told the CS that he had a large number of stolen identities on a flash drive, and discussed using the stolen identities to file fraudulent tax returns and get refunds from those returns. On January 7, 2013, Maye gave the CS a flash drive containing 50 names, dates of birth, and accompanying social security numbers.
On January 8, 2013, the IRS executed a search warrant at Thomason’s apartment. During the search, the IRS recovered numerous electronic storage devices, including computers and flash drives. On two of the flash drives, the IRS found the personal identifying information of thousands of individuals, most of whom were from outside the state of Florida. The personal identifying information included the names, dates of birth, addresses, and social security numbers of numerous individuals.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Strider Dickson.
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.
Thomas Mark Marceau Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on July 17, 2013, before U.S. Magistrate Judge Keith Strong, THOMAS MARK MARCEAU, a 28-year-old resident of Browning and an enrolled member of the Blackfeet Tribe, pled guilty to (2) charges of abusive sexual contact. Sentencing has been set for October 22, 2013. He is currently detained.
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:
X.X. disclosed to an FBI agent that MARCEAU had molested him. The assault occurred sometime between the years of 2007 through 2009, and X.X. was less than
Blackfeet Indian Reservation. MARCEAU was in his early twenties.
When interviewed about the sexual assault of X.X., MARCEAU stated that he was close with X.X. When asked about the inappropriate contact that he had with X.X., MARCEAU acknowledged that such sexual contact occurred. Y.Y. was 11-years-old when he disclosed to law enforcement that MARCEAU had molested him. The molestations perpetrated against Y.Y. occurred between 2007 and 2012, and Y.Y. was under 12 years of age during that time. As with X.X., MARCEAU was in his twenties when the molestations against Y.Y. occurred. Y.Y. explained that MARCEAU had been molesting him since Y.Y. was 6-years-old.
Agents also interviewed MARCEAU about sexual contact with Y.Y. MARCEAU admitted that the sexual contact occurred.
MARCEAU faces possible penalties of life in prison, a $250,000 fine and lifetime supervision.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the Bureau of Indian Affairs.
Texas Man Indicted for Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lockhart, Texas, man has been indicted by a federal grand jury for Failure to Pay Child Support.
Dylan L. Warner, age 30, was indicted by a federal grand jury on November 6, 2012, for failing to pay over $13,300 in past due child support. He appeared before U.S. Magistrate Judge John E. Simko on July 18, 2013, and pled not guilty to the indictment.
The maximum penalty upon conviction is two years' imprisonment and/or a $250,000 fine, one year supervised release, one additional year upon revocation, a $100 assessment fee to the Federal Crime Victims Fund, and child support restitution amount owing at the time of sentencing.
The charge is merely an accusation and Warner is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Thomas J. Wright is prosecuting the case.
Warner was released on bond pending trial. A trial date has not been set.Tangipahoa Parish Men Indicted on Drug and Gun ChargesRead the Press Release
JEFFREY MICHELE, 43; LESLIE MCMORRIS, 55; and SAM MICHELE, III, 40, all residents of Tangipahoa Parish, were indicted today by a federal Grand Jury on two counts involving cocaine conspiracy and distribution charges occurring in Tangipahoa Parish, announced U. S. Attorney Dana J. Boente.
According to the indictment, beginning at a time unknown and continuing until on or about July 7, 2013, JEFFREY MICHELE, LESLIE MCMORRIS and SAM MICHELE, III did knowingly and intentionally conspire and agree to distribute five kilograms or more of cocaine hydrochloride. JEFFREY MICHELE is also charged in the indictment with distribution of a quantity of cocaine hydrochloride.
If convicted on all charges, JEFFREY MICHELE, LESLIE MCMORRIS and SAM MICHELE, III, face a minimum term of imprisonment of ten years, a maximum term of life imprisonment, a fine of $10,000,000, and a minimum term of five years of supervised release following any term of imprisonment.
U. S. Attorney Boente reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
The investigation is being conducted by Special Agents of the Drug Enforcement Administration. The case is being prosecuted by Assistant U. S. Attorney Andre’ Jones.
(Download Indictment )
Suspended Doctor Sentenced for Illegally Dispensing Millions of Pills at Area Weight Loss Clinics, as Well as Tax Evasion with WifeRead the Press Release
HAMMOND, Ind. — A suspended physician who owned weight loss clinics in northwest Indiana and south suburban Chicago was sentenced to two years in federal prison for illegally dispensing millions of pills containing amphetamine-based controlled substances to patients, and he and his wife were also sentenced for federal income tax evasion relating to their operation of the clinics. The defendants, DR. RAKESH ANAND and MEENA ANAND, who owned and managed Doctors Weight Loss Clinics in Merrillville, Ind., and Tinley Park and Orland Park in Illinois, were also ordered to pay $745,872 in restitution to the IRS from nearly $5.2 million that was seized from them and ordered forfeited.
Rakesh Anand, 57, a suspended physician in Illinois and who was also licensed in Indiana, and his wife, Meena Anand, 53, both of Tinley Park, were sentenced yesterday by U.S. District Judge Joseph S. Van Bokkelen in Federal Court in Hammond after both defendants pleaded guilty in January. The U.S. Attorney’s Office in Chicago is handling the prosecution in the Northern District of Indiana. Judge Van Bokkelen fined Rakesh Anand $750,000 and ordered him to begin serving his two-year sentence on Aug. 30. Meena Anand was fined $100,000 and ordered to begin serving her 30-day sentence on Sept. 3.
In addition to the fines, forfeiture, and restitution, the Anands remain civilly liable to the Internal Revenue Service for any and all back taxes and a civil fraud penalty of up to 75 percent of the underpayment plus interest.
The Anands had agreed, and the judge ordered them, to pay restitution of $745,872 to the IRS for taxes they owed on nearly $2 million of unreported income between 2005 and 2008. The restitution is to be paid from funds frozen in a brokerage account when the Anands were indicted in August 2011. In addition, they agreed to forfeit more than $4.45 million in additional funds that were frozen or seized during the investigation, bringing to nearly $5.2 million the total amount of funds being applied to forfeiture and restitution.
Rakesh Anand admitted that between January 2002 and February 2010, he and another physician, Dr. Dinesh Saraiya, purchased and dispensed more than 1 million pills containing Phendimetrazine, a Schedule III controlled substance, and more than 3 million pills containing Phentermine, a Schedule IV controlled substance. The Anands grossed more than $5 million from their operation of the three weight loss clinics.
(Saraiya, 75, of Tinley Park, cooperated in the case and pleaded guilty to conspiracy to distribute controlled substances. He is scheduled to be sentenced on July 30 in Federal Court in Chicago.)
According to court records, between 2002 and February 2010, Rakesh Anand hired Saraiya, who agreed with him to illegally dispense the amphetamine-based controlled substances as weight loss medications to patients without performing physical examinations or any medical tests, and without reviewing patients’ records, obtaining a complete medical history, or providing any subsequent monitoring. In return, Rakesh Anand paid Saraiya based on how many patients he saw and how many pills he dispensed to patients on a daily basis. In dispensing the medications, Rakesh Anand and Saraiya failed to determine whether patients had first made a reasonable effort to lose weight through diet and exercise, a prerequisite to prescribing controlled substances for weight loss. In some instances, Rakesh Anand employed clerks to dispense the controlled substances even though he was not present and had not consulted with them.
During the course of the investigation, several undercover law enforcement agents, including two with slight builds and body mass indexes well below the obesity level, purchased controlled substances at the clinics without any of the appropriate medical protocols.
The sentences were announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois. The investigation was conducted by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Internal Revenue Service Criminal Investigation Division, the Food and Drug Administration and the Indiana State Police.
The government is being represented by Assistant U.S. Attorneys Matthew Schneider, Diane Berkowitz, and Orest Szewciw.
Suspended Doctor Sentenced for Illegally Dispensing Millions of Pills at Area Weight Loss Clinics, as Well as Tax Evasion with WifeRead the Press Release
U.S. Department of Justice
UnitedStatesAttorney
NorthernDistrictof Illinois
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GaryS. Shapiro EverettMcKinleyDirksenUnitedStatesCourthouse
UnitedStatesAttorney219SouthDearbornStreet,5thFloor
HAMMOND,Ind.—Asuspendedphysician whoownedweightlossclinicsinnorthwest IndianaandsouthsuburbanChicagowassentencedtotwoyearsinfederalprisonforillegally dispensingmillionsofpillscontainingamphetamine-basedcontrolledsubstancestopatients,and heandhiswifewerealsosentencedforfederalincometaxevasionrelatingtotheiroperationof theclinics.Thedefendants,DR.RAKESHANANDandMEENAANAND,whoownedand managedDoctorsWeightLossClinicsinMerrillville, Ind.,andTinleyParkandOrlandParkin Illinois, werealsoordered topay$745,872inrestitution totheIRSfromnearly$5.2million that was seizedfromthemandorderedforfeited.
Rakesh Anand ,57,a suspendedphysicianinIllinoisandwhowasalsolicensedinIndiana, andhiswife,MeenaAnand,53,bothofTinleyPark,weresentenced yesterday byU.S.District JudgeJosephS.VanBokkeleninFederalCourtinHammondafterbothdefendantspleadedguilty inJanuary. TheU.S.Attorney’sOfficeinChicagoishandlingtheprosecutionintheNorthern DistrictofIndiana.JudgeVanBokkelenfinedRakeshAnand$750,000andorderedhim tobegin
serving histwo-yearsentenceonAug.30.MeenaAnandwasfined$100,000andorderedto beginservingher30-daysentenceon Sept.3.
Inadditiontothefines,forfeiture,andrestitution, theAnandsremaincivillyliabletothe InternalRevenueServiceforanyandallbacktaxesandacivilfraudpenaltyofupto75percent of theunderpaymentplusinterest.
TheAnandshadagreed,andthejudgeorderedthem,topayrestitution of$745,872tothe IRSfortaxestheyowedonnearly $2millionofunreportedincomebetween2005and2008. The restitutionistobepaidfromfundsfrozeninabrokerageaccountwhentheAnandswereindicted inAugust2011. Inaddition,theyagreedtoforfeitmorethan$4.45millioninadditionalfunds thatwerefrozenorseizedduringtheinvestigation,bringingtonearly$5.2millionthetotal amountof funds beingappliedtoforfeitureandrestitution.
Rakesh Anand admittedthatbetweenJanuary2002andFebruary2010,heandanother physician, Dr.DineshSaraiya,purchased anddispensedmorethan1millionpillscontaining Phendimetrazine,aScheduleIIIcontrolledsubstance,andmorethan3millionpillscontaining Phentermine,aScheduleIVcontrolledsubstance.TheAnandsgrossedmorethan$5million fromtheiroperationof thethreeweightloss clinics.
(Saraiya,75,ofTinleyPark,cooperated inthecaseandpleadedguiltytoconspiracy to distributecontrolledsubstances. Heisscheduled tobesentenced onJuly30inFederalCourtin Chicago.)
Accordingto court records,between2002 and February2010, RakeshAnand hired Saraiya,whoagreedwithhimtoillegallydispensetheamphetamine-basedcontrolledsubstances asweightlossmedicationstopatientswithoutperformingphysicalexaminationsoranymedical
tests ,andwithoutreviewingpatients’records, obtaining acomplete medicalhistory,orproviding anysubsequentmonitoring. Inreturn,RakeshAnandpaidSaraiyabasedonhowmanypatients hesawandhowmanypillshedispensedtopatientsonadailybasis.Indispensing the medications,RakeshAnandandSaraiyafailedtodeterminewhetherpatientshadfirstmadea reasonableefforttoloseweightthroughdietandexercise, aprerequisite toprescribingcontrolled substancesforweightloss. Insomeinstances,RakeshAnandemployedclerkstodispensethe controlledsubstanceseventhoughhewas notpresentandhadnotconsultedwiththem.
Duringthecourseoftheinvestigation, severalundercoverlawenforcementagents, including twowithslightbuildsandbodymassindexeswellbelowtheobesitylevel,purchased controlledsubstancesattheclinicswithoutanyof theappropriatemedicalprotocols.
The sentences were announcedby Gary S. Shapiro,United States Attorney for the NorthernDistrictofIllinois.Theinvestigation wasconductedbytheFederalBureauof Investigation, theDrugEnforcementAdministration,theInternalRevenueServiceCriminal InvestigationDivision,theFood andDrug AdministrationandtheIndianaStatePolice.
Thegovernment isbeingrepresentedbyAssistantU.S.AttorneysMatthewSchneider, DianeBerkowitz,andOrest Szewciw.
Statement of U.S. Attorney Jenny A. Durkan on the Passing of Kip TokudaRead the Press Release
“With the passing of Kip Tokuda, the Western District of Washington has lost a beloved community leader, an undaunted advocate for children, and a devoted husband, father and friend. His legacy lives in the causes he advanced, the lives he bettered, and the multitude he mentored. Kip never stopped serving. Most recently, he was a valued member of the Community Police Commission, the public’s voice in police reform efforts in Seattle. He brought to that work, as he did to everything he touched, a true moral compass and genuine hope for the future. His voice was strong and respected and, as always, he spoke for the disadvantaged. We miss him.”
A public memorial service will be held at 2 p.m. on Sunday, July 21st, at Kane Hall on the campus of the University of Washington.
St. Louis Man Sentenced for Role in Cocaine ConspiracyRead the Press Release
A St. Louis man who pled guilty on April 11, 2013, in federal court, to being a member of a large cocaine distribution organization, was sentenced on July 19, 2013, the United States for the Southern District of Illinois, Stephen R. Wigginton, announced today. Mario Orduna, 46, was sentenced to 60 months imprisonment, followed by three years of supervised release. Orduna was also ordered to pay a $500 fine and a $100 special assessment. The Court entered an Order directing that Orduna forfeit $18,500 (which represented drug proceeds) to the United States.
To date, twenty-nine other members of the organization, which was responsible for trafficking in more than 150 kilograms of cocaine, have been convicted and sentenced to prison for terms ranging from 21 months to 521 months.
Evidence in support of the indictment was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Participating agencies include the Drug Enforcement Administration (DEA), Internal Revenue Service, Criminal Investigations, the U.S. Immigration and Customs Enforcement Office of Homeland Security Investigations (ICE HSI), Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), U.S. Marshal Service, the Granite City Police Department, Fairmont City Police Department, Collinsville Police Department, Fairview Heights Police Department, Caseyville Police Department, Pontoon Beach Police Department, Park Hills (Missouri) Police Department, the St. Clair County Sheriff’s Department, and the Illinois State Police. This case was assigned to Assistant United States Attorney Randy G. Massey for prosecution.
Sentencing Extortion by A Public OfficialRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced the sentencing of Jarrod “J. D.” Murkerson, 35, a resident of Blakely, Georgia, on July 18, 2013, by the Honorable W. Louis Sands, United States District Judge for the Middle District of Georgia. On March 27, 2013, Mr. Murkerson entered a plea of guilty to Extortion by a Public Official.
Judge Sands sentenced Mr. Murkerson to serve twenty-four (24) months imprisonment, followed by two (2) years supervised release, and a $100 mandatory assessment fee. There is no parole in the federal system.
As part of his plea, Mr. Murkerson admitted that in July 2011, while he was employed with the Early County Sheriff’s Office as an Investigator, he provided information and protection to an illegal drug dealer. Court records revealed that Mr. Murkerson was not aware that the drug dealer was working as a confidential informant with law enforcement. Mr. Murkerson admitted that he received $1000.00 in exchange for the information and protection that was provided to the informant when he transported nine (9) ounces of cocaine through Early County. Mr. Murkerson also admitted that in August 2011, he agreed to sell the confidential informant steroids for $1200.00.
“Anytime a law enforcement officer violates the law that they have taken an oath to uphold, it causes the trust of the people they promised to protect and serve to erode,” said U.S. Attorney Michael Moore.The case was investigated by Federal Bureau of Investigation and the Georgia Bureau of Investigation, and prosecuted by Assistant United States Attorney K. Alan Dasher.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney's Office at (478) 621-2602.
Seattle Man Pleads Guilty to Wire Fraud & Money Laundering for Ponzi Scheme Involving Fake Investments in PeruRead the Press Release
A Seattle man who marketed real estate investment opportunities in Peru pleaded guilty in U.S. District Court in Seattle today to wire fraud and money laundering for his creation and operation of a classic Ponzi scheme, announced U.S. Attorney Jenny Durkan. JOSE L. NINO DE GUZMAN, Jr., 30, ran NDG Investment Group, LLC from 2006 until 2009, when the Washington State Department of Financial Institutions issued a cease and desist order concerning his fraudulent sales of investment opportunities. According to the plea agreement filed in the case, DE GUZMAN raised more than $30 million from over 200 investors for real estate investments in Peru. However, the investments as described to investors did not occur.
DE GUZMAN is scheduled to be sentenced by U.S. District Judge Robert S. Lasnik on November 1, 2013. Pursuant to the terms of the plea agreement, the government will recommend a sentence of 151 months imprisonment.
According to records filed in the case, DE GUZMAN left school at the University of Washington without graduating and at the age of 23 founded NDG Investment Group LLC. Prior to starting the company in September 2006, DE GUZMAN had been employed by U.S. Bank as a teller and then as a personal banker. However, despite his true background, DE GUZMAN solicited investors by telling them he had worked at U.S. Bank for three years as a business and commercial lending officer and specialized in fixed income with a focus on real estate.“This defendant brazenly and persistently defrauded investors by lying about his background and success and misused millions of their dollars for his personal benefit,” said Jenny A. Durkan, U.S. Attorney for the Western District of Washington. “His victims included family members, friends and co-workers who did not know he paid for his glitz with their money. When the scheme crumbled, they sadly learned that Mr. De Guzman had perpetuated a massive fraud.”
DE GUZMAN made numerous misrepresentations about his success and the most basic fundamentals of the investments. For example, DE GUZMAN falsely represented to investors that he had a proven track record of successfully developing real estate through an established company in Peru; that the investors’ funds would be used for specific real estate projects and that the investments were secured by real property in Peru; that investors would get a high rate of return on their investments when the development projects were complete; and that NDG would only receive a portion of the profits upon successful completion of the projects and after all the investors had received their original investment and projected rates of return. These representations were false. Neither DE GUZMAN nor NDG had ever successfully completed any real estate projects in Peru and, despite raising funds for approximately twenty projects, had only purchased a limited number of real properties. No projects ever generated a profit. Nevertheless, NINO DE GUZMAN told the investors their projects were completed or were progressing, and he sent periodic, fraudulent “updates” to investors, including showing “construction” sites for projects in which the land had not even been purchased. Investors’ funds instead were used to fund DE GUZMAN’s lavish lifestyle, including the purchase of a $365,000 diamond ring, a $600,000 yacht, a $250,000 suite at Qwest Field for Seahawks games and a $200,000 Bentley automobile. Moreover, as in a classic Ponzi scheme, DE GUZMAN used millions of dollars of investors’ funds to pay off previous investors to continue the illusion that DE GUZMAN was a successful developer, and to induce additional investors.
“The FBI is pleased that Mr. De Guzman is finally taking responsibility for his actions,” said Special Agent-in-Charge Laura M. Laughlin of the FBI Seattle office. “He exploited friends, loved ones, and coworkers indiscriminately to fund a lavish lifestyle for himself. The FBI stands with the prosecutors and victims in refusing to tolerate such heartless criminal activity.”
DE GUZMAN pitched his investment opportunity at expensive downtown clubs and hotels, and emphasized NDG’s established alliances and relationships with well-known businesses and individuals. Some of the investors were the parents or friends of people employed by NDG, and it was some of these employees who first reported DE GUZMAN to regulators when they became aware of the fraud.
The case was investigated by the Washington State Department of Financial Institutions (DFI), the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Tessa Gorman, Justin Arnold and Aravind Swaminathan, as well as Special Assistant United States Attorney Robert Kondrat, who is a DFI attorney cross-designated to the United States Attorney’s Office to prosecute securities fraud cases.
For additional information please contact Thomas Bates for the United States Attorney’s Office at (206) 553-7970 or [email protected].
Richmond Tax Preparer Sentenced for Preparing False Income Tax ReturnsRead the Press Release
LEXINGTON, KY - Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Christopher A. Henry, Special Agent in Charge, IRS Criminal Investigation Division, Nashville Field Office, jointly announced today that a Richmond, KY., man, who prepared false income tax returns, was sentenced to 36 months in federal prison.
U.S. District Judge Karen Caldwell sentenced 58 year-old James Raymond Kennedy for aiding and assisting in the preparation of false income tax returns. Kennedy had previously admitted he promoted tax deductions, to his clients, that were not authorized by law. Kennedy submitted false tax returns using these deductions, which resulted in the U.S> Government losing approximately $345,000. Kennedy’s clients were unaware that the deductions Kennedy used were not authorized under the tax code.
Kennedy pleaded guilty to the charges in August of last year. He operated J.R. Kennedy and Associates from 2006 through April 2009.
Judge Caldwell ordered Kennedy to report on September 30, 2013, to the Bureau of Prisons, to begin serving his sentence.
This investigation was conducted by IRS, Criminal Investigation Division. Assistant U.S. Attorney Robert K. McBride represented the U.S. Attorney’s Office in the case.
Prosecutions Continue in Illegal Re-entry Cases Involving Those with Prior Criminal RecordsRead the Press Release
MINNEAPOLIS -- In the District of Minnesota, court action continued this week in St. Paul for two separate cases regarding Mexican nationals who entered the United States illegally after being deported as criminals. In each case, the individual was charged with one count of illegal re-entry after removal.
In the first case, Lorenzo Armendariz-Sanchez, age 45, pleaded guilty earlier today. He was indicted on May 21, 2013, and entered his plea before United States District Court Judge Donovan W. Frank. In his plea agreement, Armendariz-Sanchez admitted that on April 21, 2013, authorities found him in the U.S. illegally after he had been previously deported. His deportation followed a 1998 Faribault County conviction for burglary in the first degree. On April 21, authorities identified Armendariz-Sanchez, also known as Lorenzo Sanchez Armendariz, as an alien with a criminal record while he was in the Blue Earth County Jail, where he was being held after an arrest for burglary and domestic assault.
Identification was made through the U.S. Immigration and Customs Enforcement’s (“ICE”) Criminal Alien Program (“CAP”). One of the goals of that program is to locate criminal aliens incarcerated in federal and state prisons, as well as in local jails, and prevent them from being released into society by having them federally prosecuted.
For his crime, Armendariz-Sanchez faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Judge Frank will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by ICE’s Enforcement and Removal Operations (“ICE ERO”). It is being prosecuted by Assistant U.S. Attorney Katharine T. Buzicky.
In the second case, on July 18, 2013, U.S. District Court Judge Paul A. Magnuson sentenced Mario Mireles-Flores, age 24, to 58 months. He was indicted on January 8, 2013, and pleaded guilty on April 2, 2013. In his plea agreement, Mireles-Flores admitted that on December 5, 2012, authorities found him in the U.S. illegally after he had been previously deported. His deportation followed a 2010 McLeod County conviction for escape from custody. Authorities recently identified him as an alien with a criminal record while he was serving a sentence in the Sibley County Jail for providing false information to police. That identification was made through the CAP.
This case was the result of an investigation by ICE ERO.
In some instances, federal prosecution occurs only after the individual has been prosecuted for the recent underlying offense. Both men will remain in custody until their current federal cases are resolved. To learn more about the CAP, visit www.ice.gov/criminal-alien-program/Powhatan Store Owners Each Sentenced to 24 Months for Conspiring to Structure $10,000,000 Obtained from Illicit Cigarette SalesRead the Press Release
RICHMOND, Va. –Jayant Khare, 51, and Loveleen Khare, 56, both of Powhatan, Va., were each sentenced today to 24 months for conspiring to structure more than $10,000,000 in cash transactions for the purpose of preventing banking institutions from reporting those transactions to the Internal Revenue Service (IRS).
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; John P. Torres, Special Agent in Charge for ICE’s Homeland Security Investigations (HSI), Washington, D.C.; and Thomas J. Kelly, Special Agent in Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C., Field Office, made the announcement after the sentencing by United States District Judge Henry E. Hudson.
Jayant Khare and Loveleen Khare both pled guilty to the conspiracy charge on April 29, 2013, and April 17, 2013, respectively.
According to documents filed with the court, Jayant and Loveleen Khare owned and operated two cigarette retail stores known as Cigarettes America Plus and Cigarettes America at Westchester. Jayant and Loveleen Khare admitted that from October 2011 to December 2012, they conspired to structure over $10,000,000 in U.S. currency by splitting up cash deposits into accounts maintained at six banks, all in an effort to prevent the banks from filing Currency Transaction Reports with the IRS, which must be filed on cash deposits of $10,000 or greater. The structured cash was obtained by selling large quantities of cigarettes to out-of-state individuals who were known to be transporting the cigarettes to locations outside of the Commonwealth of Virginia for resale as contraband cigarettes because the appropriate state taxes were not paid on them. The sales took place at Jayant and Loveleen Khare’s personal residence and from the back door of the retail stores.
This case was investigated by HSI, the Internal Revenue Service - Criminal Investigation, and the Tobacco Enforcement Unit of the Office of the Attorney General of Virginia. Assistant United States Attorneys Dominick S. Gerace and Laura Colombell Marshall prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Portland Man Sentenced in Online Threat CaseRead the Press Release
The Creator of Malicious Websites is Sentenced to Federal PrisonPORTLAND, Ore. – The creator of websites that facilitated the posting of malicious and defamatory information about people was sentenced to federal prison today for making a threatening communication. United States District Judge Marco A. Hernandez sentenced Cyrus Andrew Sullivan to 24 months in federal prison for making a threatening communication to a victim of one of Sullivan’s websites. Sullivan, 30, resided in Portland, Oregon before his arrest in the case.
The case arose from an investigation involving websites created by Sullivan, which facilitated the posting of malicious and defamatory information about people. The people about whom such information had been posted were informed they could pay a fee to another website created by Sullivan to have some of the information removed. Sullivan’s conduct gained so much notoriety that he was the subject of a national television show hosted by Anderson Cooper in March of 2012.
One of Sullivan’s victims, a woman from Portland, Oregon, demanded that Sullivan remove false and malicious information about her on one of the websites. When Sullivan refused to remove the information unless she paid him $10,000, she fought back. She aggregated publicly available information about Sullivan and posted it online for other people, including other victims, to see. On June 4, 2012, when Sullivan realized what the victim had done, he threatened to kill her. On June 7, 2012, Sullivan was arrested by detectives with the Portland Police Bureau, and has been in custody since that time. He has prior convictions for criminal mischief in the second degree, assaulting a public safety officer, harassment, and recklessly endangering other persons.
The defendant was initially charged in Multnomah County Circuit Court with coercion, but that case was dismissed in favor of federal prosecution. On April 15, 2013, Sullivan pleaded guilty to making a threatening communication. In pleading guilty, he admitted that he sent an email message via the Internet containing a threat to kill another person, which a reasonable person would take as a serious expression of an intention to inflict bodily harm. His sentence was enhanced because he made multiple threats. His sentence was also enhanced because he engaged in obstructive conduct which involved threatening the victim and a judge during a release hearing, and threatening an investigator with the Oregon Consumer Protection Section of the Oregon Department of Justice.
Upon release from custody, Sullivan will serve a three year period of supervised release. During his supervised release he must abide by a number of conditions which include mental health counseling, and restricted access to computers and the Internet.
The case was investigated by the Portland Police Bureau, the Oregon Consumer Protection Section of the Oregon Department of Justice, and the Federal Bureau of Investigation, with the assistance of the Multnomah County District Attorney’s Office. The case was prosecuted by Assistant U. S. Attorney Sean B. Hoar.
Pine Ridge Couple Sentenced for Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, couple convicted of Involuntary Manslaughter were sentenced on July 11, 2013, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Whitnee Eagle, age 25, and Abraham Silas Red Cloud, age 31, were each sentenced to nine months' custody, three years of supervised release, and ordered to pay $100 to the Federal Crime Victims Fund.
Eagle and Red Cloud were indicted for Felony Child Abuse and Neglect and Involuntary Manslaughter by a federal grand jury on July 24, 2012. The charges stemmed from an incident on June 26, 2012, when Eagle and Red Cloud had been drinking large quantities of alcohol, rolled over on their five-month-old son who was sleeping in the same bed, and suffocated him.
Eagle pled guilty to Involuntary Manslaughter on March 12, 2013, and Red Cloud pled guilty to Involuntary Manslaughter on March 13, 2013.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Eagle and Red Cloud were immediately turned over to the custody of the U.S. Marshal.Physician Pleads Guilty to Filing A False Income Tax ReturnRead the Press Release
PITTSBURGH - A resident of Allegheny County pleaded guilty in federal court to a charge of filing a false tax return, United States Attorney David J. Hickton announced today.
Neil M. Niren, M.D. pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that Niren, who operated his medical practice as a sole proprietorship, knowingly filed a false income tax return for 2005. Niren also accepted responsibility for filing false tax returns for years 2006 through 2008. Niren maintained two sets of accounting books and knowingly concealed payments received directly from patients. The total amount of tax loss to the federal government as a result of Niren’s false returns is $356,998.00.
Judge Schwab scheduled sentencing for Nov. 8, 2013 at 10:00 a.m. The law provides for a maximum total sentence of not more than 3 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentence, the court released Niren on bond.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The United States Internal Revenue Service, Criminal Investigation conducted the investigation that lead to the prosecution of Niren.
Parking Lot Manager Sentenced to 40 Months for Conspiring to Steal Approximately $1.4 Million in Parking Fees from Aircraft MuseumRead the Press Release
ALEXANDRIA, Va. – Abeselom Hailemariam, 33, of Alexandria, Va., was sentenced to 40 months in prison followed by 3 years of supervised release, and ordered to pay approximately $1.4 million in restitution, for his role in a conspiracy to steal approximately $1.4 million of visitor-parking fees from the Smithsonian Institution’s Steven F. Udvar-Hazy Center in Chantilly, Va.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Scott S. Dahl, Inspector General for the Smithsonian Institution; and Valerie Parlave, Assistant Director in Charge of the FBI Washington Field Office, made the announcement after sentencing by United States District Judge T.S. Ellis, III.
Hailemariam pleaded guilty on April 19, 2013, to conspiracy to commit theft of public money, and he is the third person to be sentenced for participating in a multi-year scheme to steal parking fees at the museum.
From March 2009 to August 2012, Hailemariam was a full-time location manager for Parking Management Inc. (“PMI”), a D.C. based firm which held a contract with the Smithsonian to manage its 2,000-vehicle parking lot. During that time, Defendant participated in a conspiracy to steal parking revenues and began sharing in the stolen revenues taken by PMI booth attendants. With Hailemariam’s knowledge and approval, the booth attendants withheld parking ticket stubs from paying customers and unplugged electronic vehicle counters in the entrance booths. Hailemariam generated and submitted falsified operations reports to PMI, which were provided to the Smithsonian. The co-conspiring booth attendants paid Hailemariam a share of the stolen revenues at the end of the day by bundling unreported cash with their shift summary reports. Hailemariam also gave instructions to conspiring booth attendants to stop stealing at certain times when he believed the risk of detection of the conspiracy was high. The total loss due to the conspiracy is at least $1,383,195. Based on the $15 entrance fee, it is estimated that Hailemariam participated in a conspiracy that stole from at least 92,213 museum visitors.
Prior to today’s guilty plea, former PMI employees Meseret Terefe, 37, of Silver Spring, Md. and Freweyni Mebrahtu, 46, of Sterling, Va., have been sentenced to 20 months and 27 months in prison, respectively, for their roles in the thefts.
The case was investigated by Smithsonian Office of the Inspector General and the Federal Bureau of Investigation. Assistant United States Attorney Jasmine Yoon and Special Assistant United States Attorney James McDonald prosecuted the case on behalf of the United States
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Owner of New York Construction Company Indicted for Tax FraudRead the Press Release
The Justice Department and Internal Revenue Service (IRS) announced that Gurmail Singh, of Richmond Hill, N.Y., was arrested yesterday following his indictment on July 11, 2013, for multiple tax crimes. The indictment was unsealed yesterday following his arrest.
According to the indictment, Singh owned Fancy and Vicky Construction Co. Inc., a construction company in Richmond Hill. As alleged in the indictment, Singh used check-cashing services to cash more than $2.9 million of checks paid to his construction company for services between 2006 and 2008. He concealed his check-cashing activities from his tax return preparers, and this income was not included as gross income on the company’s tax returns. Singh also diverted cash receipts earned by his companies for his own personal use.
The indictment alleges that Singh filed false 2006 and 2007 corporate income tax returns for Fancy and Vicky Construction, failed to file a 2008 corporate income tax return for Fancy and Vicky Construction and failed to file individual income tax returns for 2007 and 2008. Singh faces a potential maximum sentence of nine years in prison and a potential fine of up to $800,000.
A trial date has not been scheduled. An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Kathryn Keneally, Assistant Attorney General for the Justice Department's Tax Division, commended the efforts of special agents of IRS–Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Mark Kotila and Jeffrey Bender, who are prosecuting the case.
Orange Village Man Sentenced to Two Years in Prison, Ordered to Pay $1.9 Million for Health Care FraudRead the Press Release
A man who lives in Orange, Ohio and admitted to overbilling Medicaid and Medicare was sentenced to two years in prison and ordered to pay more than $1.9 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Divyesh “David” C. Patel, 40, pleaded guilty last year to one count of conspiracy to commit health care fraud and four counts of health care fraud.
“This defendant defrauded the public out of nearly $2 million by forging signatures, billing for services that were never provided or were performed by aides with criminal records,” Dettelbach said. “This sentence should send a message to those who would engage in health care fraud that they will end up in prison and stripped of the money they steal.”
Patel and his company Alpine Nursing Care, Inc., located at 4753 Northfield Road, Suite 5, North Randall, Ohio, employed Belita Mable Bush, as the office manager and director of provider services from June 1, 2006 through October 18, 2009, according to court documents.
Patel and Alpine employed Bush to prepare and submit the billings to Medicaid and Medicare for reimbursement for services provided by Alpine as a home health care provider, even though Patel knew that Bush had been previously convicted of a health care-related felony that excluded Bush from being involved in any way with Alpine’s Medicaid and Medicare billings, according to court documents.
In addition to the fact that Bush was excluded from handling Alpine’s medical billings, Patel was aware that Bush falsified documents related to health care services allegedly provided to home health patients where the services were never provided, or were provided by home health aide that had previous criminal convictions that excluded them from providing health services in people’s houses, according to court documents.
As a result of the conspiracy, Medicaid and Medicare suffered a loss of more than $1.9 million, according to court documents.
Bush pleaded guilty to making a false statement and is scheduled to be sentenced on Aug. 20.
This case is being prosecuted by Assistant U.S. Attorney Mark Bennett and Special Assistant General Constance Nearhood, following an investigation by the Office of the Inspector General, Department of Health and Human Services, Cleveland; Ohio Attorney General’s Office, Medicaid Fraud Control Unit; and the Federal Bureau of Investigation, Cleveland.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Oglala Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that an Oglala, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on July 8, 2013, by Chief Judge Jeffrey L. Viken, United States District Court.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Tristan Yellow Horse, age 27, was sentenced to 18 months’ imprisonment and ordered to pay $100 to the Federal Crime Victims Fund.
On February 7, 2011, the victim and others were drinking alcohol and watching the Super Bowl at the victim’s house. Yellow Horse showed up at the victim’s house following the game and was eventually asked to leave. As he was being walked to the door, Yellow Horse punched the victim in the face and knocked him to the ground, causing a dislocated shoulder resulting in extreme pain. He pled guilty on March 8, 2013.Nigerian Sentenced to Federal Prison for Threatening Family of ICE AgentRead the Press Release
WICHITA, KAN. – A Nigerian student who was convicted of possessing a firearm that he fired from a Wichita apartment balcony has been sentenced to an additional five years in prison for threatening the family of a federal agent, U. S. Attorney Barry Grissom announced Friday.
The Nigerian, Osayuwame Bazuaye, 22, had resided in Wichita since 2008, entering the United States on a student visa. Bazuaye attended Butler County Community College and Wichita State University. In January 2012 he was arrested and charged with unlawful possession of a firearm and ammunition. The charge was the result of an incident at Bazuaye’s apartment near 21st and Woodlawn in Wichita during which he fired a handgun from his balcony.
While in custody on those charges, in October 2012, Bazuaye allegedly threatened to sexually assault the wife and daughter of a deportation officer of Enforcement and Removal Operations (ERO), part of the U.S. Department of Homeland Security. He was convicted May 1 by a federal jury here of making those threats and was sentenced Friday by U.S. District Judge Eric F. Melgren. The judge ordered a 60-month sentence to run consecutively to the 24-month sentence he is serving in the firearms arms case.
“Our deportation officers, immigration agents and Homeland Security investigators tend to get overlooked for the difficult jobs they do,” Grissom said Friday. “They have the very difficult task of dealing with a wide range of immigration issues that most people know little or nothing about. I will not tolerate threats against immigration officers or any other federal law enforcement officers or their families.”
Bazuaye faces removal to Nigeria after he completes his federal prison sentence. Grissom praised ERO for its investigation of the case and Assistant U.S. Attorney Brent Anderson for his prosecution.
Newport News Men Charged with MurderRead the Press Release
NEWPORT NEWS, Va. – Antonio J. Fuller, 23, and Kevin L. Ashby, 25, both of Newport News, Va., were indicted by a federal grand jury on June 17, 2013, for participating in a criminal organization that engaged in acts of violence, including five murders, as well as narcotics distribution and weapons violations.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; FBI Special Agent in Charge Royce E. Curtin, and James D. Fox, Chief of Newport News Police, made the announcement after the court documents were filed.
According to the indictment, both defendants were alleged to be part of a criminal organization known locally as “Thug Relations,” alternatively known as “the Duct,” “Warwick Lawnz,” “TR,” and “from the Duct to the Lawnz,” a neighborhood gang operating in the Aqueduct Apartments, St. Michael’s Apartments, Mariner’s Landing Apartments, Heritage Trace Apartments, as well as Warwick Lawns, Warwick Town Home, Sharon Drive, and the Savage Drive areas of Newport News, Virginia. The alleged gang members are accused in the indictment of protecting their criminal enterprise and activities through murder, attempted murder, witness intimidation, robbery, and narcotics distribution. Specifically, both defendants are charged with operating a racketeering enterprise responsible for violent acts including the murders of Andre Horton and Andre Julius Johnson on May 17, 2009. In addition, Fuller is charged with the murder of Christian Hatch on November 4, 2009, and Kevin Ashby is charged with the murder and robbery of Lafayette Bailey on December 15, 2009, and the murder and robbery of Lloyd Robinson on January 8, 2010. The indictment also charges the two with the attempted murder of two other individuals injured during the murders of the named victims.
To-date, the prosecution of “Thug Relations” gang members has resulted in a total of forty-three (43) federal convictions for gang related violence and murder, including the recent plea by Aronte Jarvis for the murder of Jonte Terry in the Kmart parking lot in Newport News on February 3, 2008.
This investigation was led by FBI and the Safe Streets Task Force, with assistance from the Newport News Police and the Virginia State Police. Assistant United States Attorneys Howard J. Zlotnick and Lisa R. McKeel, and Special Assistant United States Attorney Jonathan A. Ophardt are prosecuting the case on behalf of the United States.
The public is reminded that an indictment only contains charges and is not evidence of guilt. A defendant is presumed innocent unless and until proven guilty.
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.
New Orleans Man, Jordan A. Sanchez, Pleads Guilty to Mail Fraud in Fraudulent Oil Spill ClaimRead the Press Release
JORDAN A. SANCHEZ, age 27, a resident of New Orleans, Louisiana, pled guilty yesterday in federal court before U. S. District Judge Jane Triche Milazzo, to a one-count indictment charging him with mail fraud, announced U. S. Attorney Dana J. Boente.
According to court documents, SANCHEZ submitted a fraudulent claim to the Gulf Coast Claims Facility claiming that he lost his job with a local catering company in New Orleans as a result of the oil spill. In support of his claim, SANCHEZ submitted a fraudulent letter from the catering company stating that he was terminated because the oil spill affected their business to the point where they could no longer keep him on the payroll. Shortly after submitting the claim form, the Gulf Coast Claims Facility mailed a check for $27,000 to SANCHEZ. After the payment was issued, an investigator with the Gulf Coast Claims Facility contacted the owner of the catering company to discuss SANCHEZ’S work history. The owner stated that she never operated her business in New Orleans and that SANCHEZ never worked for her. On September 28, 2012, an agent with the FBI interviewed SANCHEZ about the matter. SANCHEZ admitted that the claim he filed with the Gulf Coast Claims Facility was fraudulent.
SANCHEZ faces a maximum term of imprisonment of 20 years, a fine of up to $250,000, and three years of supervised release following imprisonment. Sentencing is scheduled for October 17, 2013, at 10:00am.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
The case was investigated by special agents with the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Spiro Latsis.
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New Haven Man Sentenced to More Than Four Years in Prison for Distributing NarcoticsRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that CORNELL STREATER, also known as “Messy,” 21, of New Haven, was sentenced yesterday by Senior U.S. District Judge Warren W. Eginton in Bridgeport to 50 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI New Haven Safe Streets Task Force, the New Haven Police Department and the Connecticut State Police into drug distribution and related violence allegedly being committed by members and associates of the Grape Street Crips in New Haven.
On April 9, 2012, a grand jury returned an indictment charging 18 individuals, including STREATER, with narcotics distribution offenses stemming from this investigation. To date, nine of the defendants have pleaded guilty. The other nine defendants are detained while awaiting trial.
STREATER has been in custody since his arrest on April 17, 2012. On February 14, 2013, he pleaded guilty to one count of conspiracy to possess and distribute cocaine base (“crack cocaine”).
With respect to the defendants awaiting trial, Acting U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The investigation in this case was funded in significant part by the United States Attorney’s Office Organized Crime Drug Enforcement Task Force and supported by the Office’s Project Safe Neighborhoods and Anti-Gang programs.
This case is being prosecuted by Assistant United States Attorneys Anthony Kaplan and Gordon Hall.
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(203) 821-3722 [email protected]Nelson Travis Alexander Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on July 18, 2013, before U.S. Magistrate Judge Keith Strong, NELSON TRAVIS ALEXANDER, a 47-year-old resident of Box Elder and an enrolled member of the Chippewa Cree Indian Tribe, pled guilty to assault resulting in serious bodily injury. Sentencing has been set for October 22, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Danna R. Jackson, the government stated it would have proved at trial the following:
On December 2, 2012, ALEXANDER intentionally assaulted K.A., striking her in the face with his closed fists and causing her serious bodily injury.
ALEXANDER's assault on K.A. came without warning, breaking her nose, fracturing her jaw, and causing extreme swelling to her face. She was flown to the hospital in Great Falls and hospitalized for several days.
The assault occurred within the exterior boundaries of the Rocky Boy's Indian Reservation.
ALEXANDER faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by the Federal Bureau of Investigation.
More Defendants Sentenced Today in Major Methamphetamine ConspiracyRead the Press Release
WICHITA FALLS, Texas — Four additional defendants, who pleaded guilty to their respective roles in a major methamphetamine distribution conspiracy that they operated in Wichita Falls, were sentenced today by U.S. District Judge Reed C. O’Connor. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The following defendants were sentenced today:
- Kimberly Williams, 26, sentenced to 72 months in federal prison
- Sergio Arias, 27, sentenced to 170 months in federal prison
- Diana Gail Hassell, 45, sentenced to 78 months in federal prison
- Patrick Herrian, 37, sentenced to 110 months in federal prison
Williams and Arias each pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute methamphetamine. Hassell and Herrian each pleaded guilty to one count of conspiracy to possess with intent to distribute and to distribute and to possess with intent to manufacture methamphetamine.
Williams admitted that on multiple occasions between October 26, 2011, and August 23, 2012, she delivered quantities of methamphetamine, and picked up payments for methamphetamine, from customers in the Wichita Falls area. She also admits that on August 7, 2012, co-conspirator Dock Buckaloo delivered a quantity of methamphetamine to co-defendant’s Steve Ysasaga at Ysasaga’s house in Arlington, Texas. After Buckaloo delivered the methamphetamine, it was concealed in a Power Pack and placed in the rear of Ysasaga’s white Chevrolet pick-up truck. Later in the day, Ysasaga, accompanied by Williams in the front seat and another female in the back seat, drove the truck to Wichita Falls. The vehicle was stopped in Wichita Falls for a traffic violation and Texas Department of Public Safety (DPS) Troopers arrested Ysasaga on an outstanding warrant. A drug detection canine alerted on the truck and a search resulted in DPS seizing approximately 529 grams of methamphetamine that was concealed in the Power Pack.
While Troopers were searching the truck, Williams informed them that she had methamphetamine concealed in her body cavity. A later analysis revealed that she had 4.73 grams of methamphetamine concealed in her body. Troopers also found pages of notes in Williams’ purse that identified 13 individuals and amounts of money they owed Ysasaga for methamphetamine.
On August 13, 2012, in a transaction brokered by Buckaloo, Arias, a supplier, agreed to deliver two pounds of methamphetamine to Ysasaga, at his Arlington residence, for $23,000. That afternoon, Buckaloo picked up Arias who intended to accompany Buckaloo in delivering the methamphetamine to Ysasaga. However, at approximately 3:45 p.m., DPS agents initiated a traffic stop in Arlington of Buckaloo’s car. A drug detection canine alerted and approximately 894 grams of methamphetamine was found in a container that Arias had placed in the trunk of the car.
Hassell admitted that on at least 10 occasions in 2011, she allowed co-conspirators Randall Wayne Ezzell and James Allen Stafford to use her residence in Wichita Falls to manufacture methamphetamine, and in return, she received a quantity of the methamphetamine generated from the cooks. In fact, on December 5, 2011, when a state search warrant was executed at her residence, she, Ezzell and Stafford were present when law enforcement discovered a clandestine methamphetamine laboratory in operation.
Herrian admitted that on multiple occasions between July 2011 and June 19, 2012, he received quantities of methamphetamine from Ysasaga and distributed it to co-conspirators Tommy Vasquez, Corey Peeler and others in the Wichita Falls area. Herrian also admitted that on three occasions, he sold methamphetamine to an undercover law enforcement officer, and on another occasion, he sold not only methamphetamine, but three firearms and ammunition to an undercover officer.
To date, 29 of the 39 defendants charged in this conspiracy have entered guilty pleas; a total of 27 defendants have been sentenced. The case against one defendant has not been resolved.
This Organized Crime and Drug Enforcement Task Force (OCDETF) case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Texas Department of Public Safety and the Wichita Falls Police Department. Assistant U.S. Attorney Mary F. Walters is in charge of the prosecution.
Michael Thomas Bad Old Man Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on July 17, 2013, before U.S. Magistrate Judge Keith Strong, MICHAEL THOMAS BAD OLD MAN, a 21-year-old resident of Cut Bank and an enrolled member of the Blackfeet Tribe, pled guilty to burglary. Sentencing has been set for October 22, 2013. He is currently detained.
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 February 4, 2012, "Jane Doe" was in Great Falls because her father was in the hospital. Three individuals walked by her residence in Browning, which was located within the exterior boundaries of the Blackfeet Indian Reservation.
On February 4, 2012, a neighbor was out on his porch and observed three male individuals walking by his neighbor's residence. While he saw the three individuals walking by the residence, he did not see them pass by. He then heard three kicks and he knew that someone was breaking into "Jane Doe's" residence. He told his wife to call their son who is an officer with the Blackfeet Law Enforcement Services.
His wife called their son and then she grabbed her camera. When their son, the officer, pulled up, the officer and the neighbor went into "Jane Doe"'s residence. The neighbor's wife then took pictures of all three individuals running out of the house. The burglary occurred in broad daylight.
The individuals who broke into the house then climbed the fence, and one escaped. BAD OLD MAN and "X.X." were caught. BAD OLD MAN had items in his pockets. While waiting for law enforcement to arrive, BAD OLD MAN stated that he was going to kill the neighbor and the officer when he gets out of jail.
After backup arrived, the officer took pictures of "Jane Doe's" front door to the residence. The door was damaged. The officer stated that he was able to identify all three defendants by name when he saw them in the residence.
While at jail, a detention officer patted down BAD OLD MAN and found numerous earrings, a knife, a zippo lighter, a metal box, a heart-shaped ring, two NFL star earrings, a pink wrist band with pendant, and a rosary with a white pendant. These items were photographed.
Jane Doe" identified the items that were found on BAD OLD MAN as belonging to her. "Jane Doe's" daughter explained that BAD OLD MAN was in her house before and knew that it was "Jane Doe's" house. "Jane Doe's" daughter estimated that BAD OLD MAN had been in the house approximately five times.
BAD OLD MAN faces possible penalties of 20 years in prison, a $50,000 fine and 3 years supervised release.
The investigation was conducted by the Bureau of Indian Affairs.
Man Sentenced to 35 Months Imprisonment for Bank Fraud and Money LaunderingRead the Press Release
James L. Santelle, the United States Attorney for the Eastern District of Wisconsin, announced that on Thursday, July 18, 2013, Judge Lynn Adelman sentenced James Scalzo, 46, of Kenosha, Wisconsin to 35 months in prison for his role in a bank fraud and money laundering scheme. Scalzo was also ordered to serve three years supervised release following his prison term and to pay $200 in special assessments. Restitution is to be determined at a later date.
In January 2013, Scalzo pled guilty to a criminal information charging him with a bank fraud scheme, a violation of Title 18, United States Code, Section 1344, and money laundering in violation of Title 18, United States Code, Section 18 U.S.C. section 1956. Scalzo faced up to 30 years for the bank fraud offense and up to 20 years on the money laundering count.
Between April 1, 2008 and October 31, 2009, while employed as a bank officer at Fox River State Bank in Burlington, Wisconsin and then Consumer’s Credit Union in Round Lake Beach, Illinois, Scalzo originated and approved multiple fraudulent loans. Scalzo then directed funds to be taken from the loans and transferred by cashier’s check or wire, to accounts in which he had a personal interest. Some of the loan funds were applied against earlier loans in order to conceal the fraud. More than $1.4 million in loan funds were involved.
The case involved not only an abuse of the trust of the financial institutions that employed Scalzo, but also caused personal and financial hardship to unknowing citizens. Among the victims was a couple whose home Scalzo had pledged as collateral for one of the fraudulent loans and then allowed to go into foreclosure.
The case was investigated by the Internal Revenue, Criminal Investigation and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Carol L. Kraft.
# # #Man Pleads Guilty to Making Bomb Threats at Minneapolis-St. Paul International Airport and MOARead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a 22-year-old man, formerly of Maine, pleaded guilty to making bomb threats at the Minneapolis-St. Paul International Airport and the Mall of America (“MOA”). Dana William Ashey pleaded guilty to one count of false information and hoaxes. Ashey, who was indicted on May 13, 2013, entered his plea before United States District Court Judge Susan Richard Nelson.
In his plea agreement, Ashey admitted that on April 12, 2013, he threatened that bombs had been planted at both the airport and the MOA. According to a law enforcement affidavit filed in the case, the airport’s police dispatch received a bomb threat at 2:37 a.m., on April 12, 2013, with a warning that a bomb placed in a restroom could go off by 3:00 a.m. At 2:42 a.m. that same day, another bomb threat was phoned in to security dispatch for the MOA. The caller in that instance stated that the bomb had been placed in a restroom. A search of the mall yielded no bomb. At 2:17 p.m., the mall’s switchboard operator received yet another bomb threat. Authorities traced the call and found the man still inside the MOA. The man, later identified as Ashey, possessed the cell phone that was used to deliver the bomb threats.For his crime, Ashey faces a potential maximum penalty of five years in federal prison. Judge Nelson will determine his sentence at a future hearing, yet to be scheduled. This case is the result of an investigation by the Federal Bureau of Investigation’s Joint Terrorism Task Force, the Minneapolis-St. Paul International Airport Police Department, the Bloomington Police Department, and the MOA Security. It is being prosecuted by Assistant U.S. Attorney Andrew R. Winter.
Lexington Man Sentenced to 168 Months for Distributing Child PornographyRead the Press Release
LEXINGTON, KY - A Lexington man, who made child pornography videos available for download over the internet, has been sentenced to 168 months in federal prison.
On Thursday, U.S. District Judge Karen Caldwell sentenced 29 year-old Brett Michael Compton for distribution of child pornography and ordered him to serve 25 years of supervised release following the completion of his prison sentence. Compton is also required to register as a sex offender for the remainder of his life.
According to court documents, in October 2011, an undercover law enforcement agent located two online videos depicting children engaged in sexually explicit conduct. Agents later discovered that Compton had posted these videos from his computer. The videos contained images of prepubescent children.
In December of 2011, during the execution of a search warrant, authorities found approximately 60,000 child pornography images on Compton’s home computer.
Under federal law, Compton must serve at least 85 percent of his prison sentence.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Perrye Turner, Special Agent in Charge, Federal Bureau of Investigation, and Jack Conway, Kentucky Attorney General, jointly announced the sentence.
The investigation was conducted by the Cyber Crimes Unit with the Kentucky Attorney General’s Office, and the FBI. The U.S. Attorney’s Office was represented in the case by its Fort Mitchell Branch Office.
Key Atlanta Drug Distributors SentencedRead the Press Release
ATLANTA - Glenn A. Cook has been sentenced to serve over ten years in federal prison on charges of conspiracy to possess and distribute cocaine, money laundering, and possession of a firearm during a drug offense.
“A four-month investigation of two Atlanta area cocaine suppliers led to the prosecution of numerous individuals in the distribution chain and stopped key players from continuing to sell cocaine throughout Georgia,” said United States Attorney Sally Quillian Yates. “The combined effort of federal, state, and local law enforcement led to the removal of dangerous drugs and guns from our community.”
According to United States Attorney Yates, the charges and other information presented in court: Cook is the last of five defendants to be sentenced in this case, which arose from an investigation of regional cocaine distributors in Georgia that took place from October 2010 through January 2011. Cook and co-defendant Vincent Lamar Hall, known as “the Million Dollar man,” served as the two main sources of cocaine for another defendant, T’Michael Djuan Jones. Together, Cook and Hall distributed a total of 676 kilograms of cocaine to Jones and others. Jones in turn distributed cocaine to co-defendants Phillip La Shawn Massey and Anthony Gasque as well as others in the Macon and Brunswick areas.
During the investigation, law enforcement used Title III wiretaps to disrupt a two-kilogram cocaine transaction on October 11, 2010, that was worth $60,000 to Jones and Massey. Massey fled on foot from law enforcement, leaving behind the drugs and a gun.
On October 25, 2010, law enforcement also recovered four kilograms of cocaine that had been discarded by Gasque once he became aware the police were following him. Once the four kilograms of cocaine were tossed, Jones and Massey came up with a plan to rob Cook near his residence to replace the lost cocaine. Jones and Massey targeted Cook’s couriers, but the gun misfired and the couriers got away. As Cook was unaware of this plan, Jones continued to order large quantities of cocaine from Cook, some of which were intended for Massey.
Cook and Hall each lived in lavish homes with surveillance cameras on their properties to detect any individuals coming onto the property. Both men forfeited their personal residences, more than $50,000 in cash and bank funds, numerous high-end automobiles, including a Maserati and a fully-restored 1959 Thunderbird, two waverunners and an ATV, jewelry valued at more than $20,000, and assorted electronic equipment.“This organization’s cocaine trafficking activities clearly fed many illicit drug users. Because of the large volume of drugs involved, their sentences are appropriate and they will spend well-deserved time in prison,” said Harry S. Sommers, Special Agent in Charge of the DEA Atlanta Field Division. “I commend our local law enforcement counterparts who played a crucial role in conducting this investigation.”
“IRS Criminal Investigation not only enforces the nation’s tax laws, but we also take particular interest in cases where the public is at risk due to unlawful activity occurring in our neighborhoods,” stated Veronica Hyman-Pillot, Special Agent in Charge. “We are proud to have contributed our financial skills in a united effort to thwart this organizations ability to launder money and commit crimes against our community.”
Cook, 41, of Atlanta, Ga., pleaded guilty on May 2, 2012, to conspiracy to possess at least 50 kilograms of cocaine, with the evidence demonstrating that he was responsible for approximately 646 kilograms. Cook was sentenced to ten years and one month in prison to be followed by five years of supervised release, and 100 hours of community service.
The other defendants previously sentenced in the case include:
- Vincent Lamar Hall, 42, of Lithonia, Ga., on October 11, 2012, received 12 years, 7 months in prison for conspiracy to possess at least 5 kilograms of cocaine, money laundering, and tax evasion. Hall was responsible for at least 30 kilograms of cocaine and numerous guns were found during the search of his residence.
- T’Michael Djuan Jones, 39, of Conyers, Ga., on August 6, 2012, received 12 years, 3 months in prison for possession of cocaine, conspiracy to possess at least 5 kilograms of cocaine, and possession of a firearm during a drug offense.
- Phillip La Shawn Massey, 35, of Hampton, Ga., on December 10, 2012, received 10 years, 3 months in prison for conspiracy to possess at least 5 kilograms of cocaine and possession of a firearm during a drug offense.
- Anthony Gasque, 34, of Fairburn, Ga., on August 3, 2012, received 5 years, 3 months in prison for conspiracy to possess at least 5 kilograms of cocaine.
Each of these defendants also received 5 years of supervised release to follow their term in prison and was ordered to perform 100 hours of community service.
This case was investigated by Special Agents of the Drug Enforcement Administration and Special Agents of the Internal Revenue Service with assistance from the Georgia Bureau of Investigation, the East Point Ga. Police Department, the Fulton County Sheriff’s Office, the Warren County Sheriff’s Office, and the Georgia State Patrol.Assistant United States Attorney Cassandra Schansman, Susan Coppedge, and Michael J. Brown along with Thomas J. Jaworski of the Department of Justice, Tax Division, prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Justice Department Signs Agreement with the Town of Poestenkill, N.Y., to Ensure Civic Access for People with DisabilitiesRead the Press Release
The Justice Department announced today an agreement with the town of Poestenkill, N.Y., to improve access to all aspects of civic life for persons with disabilities. The agreement was reached under Project Civic Access (PCA), the department’s wide-ranging initiative to ensure that cities, towns and counties throughout the country comply with the Americans with Disabilities Act (ADA).
“Access to a town’s government is the most basic of civil rights. It is the gateway to programs, services and activities that should be afforded to all people in a community, including those with disabilities,” said Eve L. Hill, Deputy Assistant Attorney General for the Civil Rights Division. “Today the Town of Poestenkill, N.Y., joins the growing list of cities, towns and counties throughout the United States, committing to the inclusion of people with disabilities in their towns.”
The PCA initiative ensures that people with disabilities have an equal opportunity to participate in civic life, a fundamental part of American society. As part of the PCA initiative, Justice Department staff survey state and local government facilities, services and programs in communities across the country to identify what is needed to comply with the ADA. The agreements address the steps a community must take to improve access. This agreement is the 207th entered into under the Department’s PCA initiative.
Under the agreement announced today, the town will remove barriers to accessibility at the town Hall and the Poestenkill Library. The agreement also requires the town to do the following:
∙ Make physical modifications to its facilities so that parking, routes into the buildings, entrances, public telephones, restrooms, service counters and drinking fountains are accessible to people with disabilities; and assembly areas have the required wheelchair and companion seating.
∙ Post, publish and distribute a notice to inform members of the public of the provisions of Title II and their applicability to the town’s programs, services and activities.
∙ Train staff in using the New York state relay service for telephone communications.
∙ Develop a method for providing emergency management policies and procedures for persons with disabilities, including preparation, notification, response and clean-up.
∙ Develop a method for providing information for interested persons with disabilities concerning the existence and location of the town’s accessible services, activities and programs.
∙ Establish, implement and post online a policy that the town’s web pages be accessible, create a process for implementation and ensure that all new and modified web pages are accessible.
∙ Implement a plan for the accessibility of sidewalks and curb cuts throughout the Town.
Today’s agreement was reached under Title II of the ADA, which prohibits discrimination against individuals with disabilities by state and local governments. The agreement requires the actions to be completed within three years. The department will actively monitor compliance with the agreement throughout this timeframe.
This agreement is the first to be posted on the department’s newly redesigned PCA web page and may be viewed at www.ada.gov/civicac.htm. The web page allows users to identify PCA agreements in two different ways: by geographic location using a clickable map or a state list and by chronological order, when the agreement became effective.
People interested in finding out more about the ADA, today’s agreement with the town of Poestenkill the Project Civic Access initiative or the ADA Best Practices Tool Kit for State and Local Governments may access the ADA web page at www.ada.gov or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
Jess James Rutherford, Jr. Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on July 18, 2013, before U.S. Magistrate Judge Keith Strong, JESS JAMES RUTHERFORD, JR., a 28-year-old resident of Heart Butte and an enrolled member of the Blackfeet Tribe, pled guilty to assault resulting in serious bodily injury. Sentencing has been set for October 22, 2013. He is currently detained.
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 April 23, 2013, "S.S." was interviewed about the assault by RUTHERFORD. "S.S." and RUTHERFORD had dated for eight months. On the night in question, "S.S." stated that RUTHERFORD was drinking with his friends, and the friends left. "S.S." explained that she was also drinking and she lived in the house with RUTHERFORD. Despite living together, RUTHERFORD locked "S.S." outside. "S.S." wanted back inside to get her bag. RUTHERFORD told her that he burned her bag but eventually let her inside.
The beating then ensued. RUTHERFORD threw "S.S." to the ground, stomped on her, and punched her repeatedly. Specifically, RUTHERFORD stomped on "S.S.'s" neck, back, and legs. He was hitting her with a "backhand" at first, but then, when she was on her belly, he started stomping on her, and eventually stomped on her chest and breasts. The pictures of "S.S.'s" breasts show deep bruising on her breasts and chest.
S.S." explained that RUTHERFORD was calling her a "*****" while he was hitting her. Her underwear were also torn. She stated that RUTHERFORD was trying to pull her pants down, and he ripped her underwear off. He was also dragging her around by the hair. "S.S." stated that she was not knocked unconscious, and RUTHERFORD, when kicking her, was wearing regular tennis shoes. "S.S." did not know why RUTHERFORD stopped.
The beating lasted for approximately a half hour, beginning at 2:30 a.m. After the beating, "S.S." waited for RUTHERFORD to fall asleep so that she could leave. She then ran to a neighbor.
After arriving at the neighbor's house, "S.S." went to the hospital. The attending physician stated that "S.S." had two broken ribs on her left side. The victim also had a bilateral and impacted nasal fracture. "S.S." described her pain as a ten out of ten, with ten being the worst. "S.S." described in an interview two days after the assault that her fingers and mouth were still numb.
RUTHERFORD faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was conducted by the Bureau of Indian Affairs.
Jefferson City Man Sentenced for Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Jefferson City, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Michael Lee Miller, 22, of Jefferson City, was sentenced by U.S. Chief District Judge Fernando J. Gaitan on Thursday, July 18, 2013, to three years and one month in federal prison without parole.
On Nov. 29, 2012, Miller pleaded guilty to being a felon in possession of a firearm. Miller admitted that he was in possession of a Smith & Wesson semi-automatic .40-caliber handgun on July 27, 2012.
Jefferson City police officers were conducting patrol in the 1100 block of East McCarty Street – where two recent shootings had occurred and where .40-caliber shell casings were recovered – at approximately 9:17 p.m. on July 27, 2012. The officers saw Miller and two other men standing outside in front of a residence. When the officers got out of their unmarked patrol car, Miller walked away from the officers toward the porch.
When one of the officers told Miller he wanted to speak with him, Miller replied, “You’re not searching me.” Miller turned his back to the officers. One of the officers immediately frisked Miller and found the loaded handgun in his waistband. Miller was placed under arrest.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Miller has prior felony convictions for receiving stolen property, burglary and assault.
This case was prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jefferson City, Mo., Police Department.
Ivan Gabriel Castro-alvarez Indicted for Illegal ReentryRead the Press Release
IVAN GABRIEL CASTRO-ALVAREZ, age 29, a citizen of Honduras, was charged in a one-count indictment by a Federal Grand Jury today with illegal reentry by an alien previously removed, announced U. S. Attorney Dana J. Boente.
According to the indictment, on or about June 28, 2013, CASTRO-ALVAREZ, an alien who had previously been removed from the United States, was found in the United States, within the Eastern District of Louisiana, without having obtained consent from the Secretary of the Department of Homeland Security to reapply for admission to the United States.
If convicted, CASTRO-ALVAREZfaces a maximum term of imprisonment of two years, a fine of $250,000 and one year of supervised release following any term of imprisonment.
U. S. Attorney Boente reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by United States Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE). The prosecution is being handled by Assistant United States Attorney David Haller.
(Download Indictment )
International Wildlife Investigation results in charges against Alaskan Big Game Guide and Canadian Clients for wildlife crimesRead the Press Release
Anchorage, Alaska- Acting U.S. Attorney Kevin Feldis announced today that a joint United States and Canadian wildlife investigation has resulted in the filing of charges by the federal grand jury in Anchorage, Alaska, against an Alaskan big game guide, and three Canadian citizens.
The indictment by the grand jury charges John Katzeek, 64, of Haines, Alaska, who is employed as a big game guide in Alaska, with nine counts including conspiracy, the filing of false documents concealing the illegal nature of the guided hunts, take of wildlife, and smuggling. Also charged with Katzeek for conspiracy and filing false documents were Alberta, Canada, residents Brian Hicken, 54, Kenneth Cox, 49, and Tyler Antal, 22.
The guided hunts and the violations during these hunts occurred between October 2010 and November 2011, in the Haines, Alaska area. The indictment charges the unlawful take and transportation of Mountain goats in violation of numerous Alaska laws and the illegal export of the horns and hides from these goats to Canada by Katzeek, Cox, Hicken and Antal, all in violation of the federal Lacey Act.
The indictment also charges that Katzeek participated in the illegal import of trophy Dall sheep from Yukon, Canada into the United States. The indictment alleges that during December 2008 and through March 2009, Katzeek conspired with another individual to illegally import a trophy Dall sheep ram using false documents, and smuggling the sheep horns from Canada into the United States. During 2010, Katzeek personally imported a second trophy Dall sheep using false documents to facilitate the export of the horns from Canada into the United States.
The indictment is the result of an extensive joint United States and Canadian investigation. Starting in January 2013, Canada Crown prosecutors in Alberta, and Yukon Territory Canada, charged approximately 17 subjects with 55 violations under Wild Animal and Plant Protection and the Regulation of International and Interprovincial Trade Act (WAPPRIITA). These charges were in relation to the illegal guided hunts charged above and the illegal import of unlawful wildlife from the United States into Canada. The Canadian trials are scheduled to begin in the fall of 2013.
The maximum penalty for conspiracy and violating the Lacey Act is 5 years imprisonment and a $250,000 fine. The maximum penalty for smuggling is 30 years in prison with a $250,000 fine. An arraignment date has not been set.
Mr. Feldis commends the U.S. Fish and Wildlife Service, Alaska Wildlife Troopers, Environment Canada, Yukon Conservation Officer Service, Alberta Fish and Game, Parks Canada, British Columbia Conservation Officer Service, and the Public Prosecution Service of Canada for the international cooperation extended in the investigation of these cases.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on July 19, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, the following individual was arraigned:
KURT LEE WHITLING, a 50-year-old resident of Billings, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. He is currently detained. If convicted of these charges, WHITLING faces possible penalties of a mandatory minimum of 10 years in prison and could be sentenced to life, a $10,000,000 fine, and 5 years supervised release on each of the two counts. Assistant U.S. Attorney Joseph E. Thaggard is the prosecutor for the United States. The investigation was conducted by the Drug Task Force.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Illinois Men sentenced for Trafficking Contraband CigarettesRead the Press Release
United States Attorney James L. Santelle announced today that on Wednesday, July 17, 2013, federal Judge Lynn Adelman sentenced Shakil Wamiq, (age: 34), formerly of Bloomingdale, Illinois, and Mazher Khan, (age: 49), of Evergreen Park, Illinois, for their roles in a cigarette trafficking scheme that was in existence from late 2010 to early 2012.
Wamiq, was sentenced to 21 months in prison and ordered to pay $220,882.20 in restitution to the Illinois Department of Revenue as the result of tax losses caused by his criminal conduct. Adelman also ordered a money judgment of forfeiture in the amount of $472,993.20 based on the defendant’s illicit gains. In addition, Wamiq is required to pay $400 in special assessments.
Khan was sentenced to two years of probation, with the condition that he serve 180 days of home confinement. Khan was also ordered to pay $58,150 in restitution to the Illinois Department of Revenue, a money judgment of forfeiture in the amount of $125,308.80 and special assessments of $300. A 2009 Ford Econoline van registered to Khan was also forfeited as property used to facilitate the crime.
Both defendants were convicted in April 2013 by a jury in the Eastern District of Wisconsin. Wamiq, who operated as an Illinois distributor known as Good Deal Wholesale, Inc., located in Streamwood, Illinois, was convicted of four counts of contraband cigarette trafficking in violation of Title 18, United States Code, Section 2342(a). Khan, who operated in Illinois as MAK Distributors, in Mokena, Illinois, was convicted of three counts.
Also convicted as part of this criminal venture were Mohammad Uddin, (age: 30), of Naperville, Illinois, Adil Majid, (age: 54) of Bolingbrook, Illinois, and Haroon Bheri, (age: 33), of Glendale Heights Illinois all of whom pled guilty to a conspiracy to traffic contraband cigarettes in violation of Title 18, United States Code, Section 371. Uddin received a six month prison sentence to be followed by six months of home confinement and was ordered to pay $565,068 in restitution and $100 in special assessments. Majid and Bheri each received a probationary sentence with a condition of 180 days home confinement. Majid was ordered to pay $152,586 in restitution and Bheri was ordered to pay $173,166 in restitution. Both were also ordered to pay $100 in special assessments.
In addition, Maher Sunnokrot, (age: 38) of Worth, Illinois and Mohammed Mazharuddin, (age 41), formerly of Milwaukee and now residing in Texas, pled guilty to charges of misprision of felony in violation of Title 18, United States Code, Section 4. Each was given a probationary sentence and ordered to pay $66,400 in restitution and $100 in special assessments.
Additional defendants include Farrukh Aslam, (age: 28), formerly of Glendale Heights, Illinois, who is a fugitive and Ahsan Uddin, (age: 28), of Naperville, Illinois who is being supervised under the terms of a deferred prosecution agreement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives initiated the year-long investigation into this activity based upon a complaint from a local citizen who alleged that his business was being financially undercut by persons who were dealing in untaxed tobacco products. The investigation included an undercover warehouse in Milwaukee and an undercover agent posing as a source for untaxed cigarettes. Video recordings showed the defendants purchasing cases of untaxed cigarettes with cash that was sometimes brought in shopping bags. The warehouse was devoid of accoutrements normally associated with a legitimate business, and the videos showed the defendants themselves loading the contraband cigarettes into their respective vehicles. The cigarettes were purchased at a cost that was substantially below that of an authorized manufacturer, and transported the cigarettes into Illinois where they were further disbursed.
Under federal law, only certain categories of persons may possess cigarettes which do not bear a state tax stamp. At trial Wamiq and Khan contended that their Illinois distributor licenses authorized them to purchase possess and transport the cigarettes involved.
The case was prosecuted by Assistant United States Attorneys Carol L. Kraft and Laura S. Kwaterski and investigated by special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Hudson County, N.J., Man Convicted of Sexually Abusing Sleeping Woman on Domestic FlightRead the Press Release
NEWARK, N.J. – A Hudson County, N.J., man was convicted by a federal jury today of sexually abusing a sleeping woman aboard a flight from Phoenix to Newark Liberty International Airport last summer, U.S. Attorney Paul J. Fishman announced.
Bawer Aksal, 49, of North Bergen, N.J., was convicted of one count of sexual abuse and one count of abusive sexual contact following a five-day trial before U.S. District Judge Jose L. Linares in Newark federal court. The jury deliberated seven hours before returning its guilty verdicts.According to documents filed in this case and the evidence presented at trial:
Aksal was a passenger on a United Airlines flight from Phoenix to Newark on August 20, 2012. He was sitting in the middle seat in a row of three seats. Neither Aksal, the victim, who was seated in the window seat, nor the passenger in the aisle seat knew each other. Before take-off, the victim texted a friend complaining about Aksal’s arm encroaching into her seating area.
About one hour before landing, the aisle passenger looked to his right and saw Aksal half into the victim’s seat, with his body against the victim’s, his right arm around the back of her and his left hand beneath a sweater that was draped over her. The victim awoke to find Aksal’s hands inside her shirt and shorts and struggled out of his grasp. The aisle passenger observed her jolting awake. The aisle passenger and the victim both gathered their belongings and headed to the back of the plane to report what happened to the flight attendants.
Aksal was detained upon arrival in Newark and arrested by agents of the FBI. He now faces a maximum potential sentence of life in prison and a $250,000 fine. Sentencing before Judge Linares is scheduled for Oct. 23, 2013.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and the Port Authority Police Department, under the direction of Superintendent Michael Fedorko, with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorneys Danielle Alfonzo Walsman and Robert Frazer of the U.S. Attorney’s Office Criminal Division in Newark.The federal government has exclusive jurisdiction over all sexual abuse cases that occur in American airplanes, as such events are outside the jurisdiction of any state.
13-299Defense counsel: Robert J. Degroot Esq., Newark
Hudson County, N.J., Man Convicted of Sexually Abusing Sleeping Woman on Domestic FlightRead the Press Release
NEWARK, N.J. – A Hudson County, N.J., man was convicted by a federal jury today of sexually abusing a sleeping woman aboard a flight from Phoenix to Newark Liberty International Airport last summer, U.S. Attorney Paul J. Fishman announced.
Bawer Aksal, 49, of North Bergen, N.J., was convicted of one count of sexual abuse and one count of abusive sexual contact following a five-day trial before U.S. District Judge Jose L. Linares in Newark federal court. The jury deliberated seven hours before returning its guilty verdicts.According to documents filed in this case and the evidence presented at trial:
Aksal was a passenger on a United Airlines flight from Phoenix to Newark on August 20, 2012. He was sitting in the middle seat in a row of three seats. Neither Aksal, the victim, who was seated in the window seat, nor the passenger in the aisle seat knew each other. Before take-off, the victim texted a friend complaining about Aksal’s arm encroaching into her seating area.
About one hour before landing, the aisle passenger looked to his right and saw Aksal half into the victim’s seat, with his body against the victim’s, his right arm around the back of her and his left hand beneath a sweater that was draped over her. The victim awoke to find Aksal’s hands inside her shirt and shorts and struggled out of his grasp. The aisle passenger observed her jolting awake. The aisle passenger and the victim both gathered their belongings and headed to the back of the plane to report what happened to the flight attendants.
Aksal was detained upon arrival in Newark and arrested by agents of the FBI. He now faces a maximum potential sentence of life in prison and a $250,000 fine. Sentencing before Judge Linares is scheduled for Oct. 23, 2013.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and the Port Authority Police Department, under the direction of Superintendent Michael Fedorko, with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorneys Danielle Alfonzo Walsman and Robert Frazer of the U.S. Attorney’s Office Criminal Division in Newark.The federal government has exclusive jurisdiction over all sexual abuse cases that occur in American airplanes, as such events are outside the jurisdiction of any state.
13-299Defense counsel: Robert J. Degroot Esq., Newark
Henderson Man Sentenced to 20 Years ImprisonmentRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court yesterday, Chief United States District Judge James Dever sentenced TYSHIK-KEE WILLIAMS, 21, of Henderson, North Carolina, to 240 months imprisonment followed by 3 years supervised release.
A Federal Grand Jury returned a Criminal Indictment on January 16, 2013, charging WILLIAMS with one count of Possession of a Firearm by a Felon, in violation of Title 18 U.S.C. §922, and 2 counts of Distribution of Heroin, in violation of Title 21 U.S.C. §841. On April 9, 2013, WILLIAMS pleaded guilty to all counts without a plea agreement.
The evidence in the case demonstrated that, on or about March 30, 2011, WILLIAMS was present in a hotel room during a search of that room by law enforcement. Found during the search was a loaded .25 caliber handgun, other ammunition and a large quantity of heroin. WILLIAMS admitted that the .25 caliber firearm was his. The evidence also demonstrated that on or about January 18, 2012, and February 1, 2012, respectively, WILLIAMS sold a quantity of heroin to an informant working with the Henderson Police Department. Evidence presented at sentencing demonstrated that WILLIAMS was responsible for multiple shootings and robberies in the Henderson area and that, while being held on state charges, WILLIAMS solicited robberies and drug trafficking activities from other individuals of the Money Gang Mob (MGM).
Investigation of this case was conducted by the Henderson Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Rudy E. Renfer represented the government.
Four Indicted for Conspiring to Unlawfully Harbor, Employ AliensRead the Press Release
MINNEAPOLIS—Recently in federal court, three St. Paul men and a California man were indicted for recruiting foreign nationals who were in or coming to the United States on visitor visas to work at the defendants’ hair and beauty products kiosks at the Mall of America. On July 16, 2013, Avraham Nadivi, age 31, Yehiel Shpitser, age 30, and Adam Vaknin, age 32, all of St. Paul; and Yosi Rachamim, age 31, of Woodland Hills, California, were charged with one count of conspiracy to commit unlawful employment and harboring of aliens, seven counts of unlawful employment of aliens, and four counts of harboring of certain aliens.
The indictment alleges that from September 21, 2009, through June 19, 2013, the defendants conspired with each other and others to hire and recruit the foreign nationals, to harbor them in apartments near the Mall, and to transport them to and from work, to conceal the unlawful employment and harboring from detection. Allegedly, YA & YA USA, Inc., a company operated by the defendants and the owner of the hair and beauty product kiosks at the Mall, did not report the wages of the unauthorized workers.
In August 2012, YA & YA was audited by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“ICE-HSI”), and the indictment alleges that the defendants did not include employment verification paperwork on several employees. In addition, the defendants allegedly paid for apartments and electricity bills for the employees. The defendants also allegedly purchased and leased several vehicles to transport the employees to and from work.
A visitor visa is a non-immigrant visa for persons who want to enter the U.S. and persons holding such a visa are not authorized to work in the U.S. According to a law enforcement affidavit filed in the case, the Minnesota Department of Employment and Economic Development has no record for the past three years of any employees of YA & YA, although various individuals have been observed working there.
One of those employees has been indicted in a related case for making false claims in order to obtain lawful permanent resident status and employment authorization. On July 16, 2013, Lihi Aliza Elgrably, age 26, of St. Paul, was charged with one count of visa fraud. Elgrably’s indictment alleges that from January 27 to February 15, 2010, she submitted a petition to adjust her immigration status and allegedly withheld information about her employment with YA & YA.
If convicted, Nadivi, Rachamim, Shpitser, and Vaknin face a potential maximum penalty of ten years in prison on each harboring count, five years on the conspiracy count, and six months on each unlawful employment count. Elgrably faces a potential maximum penalty of ten years. Any sentence will be determined by a federal district court judge.
This case is the result of an investigation by the U.S. Customs and Border Protection, ICE-HSI, and the HSI-led multi-agency Document and Benefit Fraud Task Force. It is being prosecuted by Assistant U.S. Attorneys Laura M. Provinzino and Sarah E. Hudleston.
To learn more about the Document and Benefit Fraud Task Force, visit http://www.ice.gov/document-benefit-fraud/.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.Fort Thompson Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury.
Kyle Marks, age 29, was indicted by a federal grand jury on June 12, 2013, for Failure to Register as a Sex Offender. Marks appeared before U.S. Magistrate Judge Mark A. Moreno on July 17, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years of imprisonment, a $250,000 fine, or both; a mandatory minimum period of at least 5 years of supervised release and an additional mandatory minimum term of 5 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 Marks is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service and Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case. Marks was remanded to the custody of the U.S. Marshals Service. A trial date has not yet been set.Former Youth Minister Pleads Guilty in Federal Court to Child Pornography OffenseRead the Press Release
Defendant Worked at Churches in Levelland and Lubbock
LUBBOCK, Texas --- Trevor Jacob Fortner, 25, of Lubbock, Texas, appeared in federal court in Lubbock, Texas, this morning, before U.S. District Judge Sam R. Cummings, and pleaded guilty to a one-count indictment charging attempted transfer of obscene material to a minor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
The statutory maximum penalty for this offense is 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. However, according to plea documents filed in the case, Fortner and the government will make a non-binding recommendation to the Court that a 48-month sentence is appropriate. Today, Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Fortner will remain on bond pending sentencing.
Most recently, Fortner was a youth minister at a church in Levelland, Texas; he has also worked in the graphics department of a church in Lubbock.
According to documents filed in the case, on May 7, 2013, Fortner responded to an online personal advertisement that had been posted by an undercover officer with the Lubbock Police Department (LPD). Posing as a 15-year-old girl, the undercover officer responded to Fortner’s initial contact. During ensuing emails and text conversations between Fortner and the undercover officer, Fortner repeatedly affirmed that he understood the girl’s age.
During these text conversations, Fortner discussed meeting the minor girl and described the kind of sexual activity he wished to engage in with her. He asked her to send him “kinky pics” and “dirty pics,” and on May 7, 2013, he sent her a sexually explicit photograph of himself. The following day, Fortner was interviewed by LPD officers and he admitted communicating with a 15-year-old girl and sending her a photograph of himself, which he acknowledged was obscene.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case is being investigated by the FBI, the LPD and the LPD’s Internet Crimes Against Children (ICAC) Task Force. Assistant U.S. Attorney Amanda R. Burch is in charge of the prosecution.
Former Special Forces Sergeant Sentenced to 24 Months’ Imprisonment for International Arms SmugglingRead the Press Release
Earlier today, in federal court in Brooklyn, New York, Joseph Debose, a resident of North Carolina and a former United States Marine and Staff Sergeant in a U.S. Special Forces National Guard Unit, was sentenced to 24 months’ imprisonment for violating the Arms Export Control Act. Debose provided multiple shipments of firearms to co-conspirators who then secreted the weapons in packages and transported them to shipping companies to be sent to customers in China. The weapons included dozens of semi-automatic handguns, rifles and shotguns.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; John Carlin, Assistant Attorney General, U.S. Department of Justice; James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York; Joseph Anarumo, Jr., Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York Field Division; Toni Weirauch, Special Agent-in-Charge, Internal Revenue Service (IRS), New York Field Office; and Sidney Simon, Special Agent-in-Charge, Department of Commerce (DOC), Office of Export Enforcement, New York Field Office.
“Through his service in the U.S. Marine Corps and National Guard, the defendant swore an oath to this country and its people, and was decorated. He then traded the honor which won him medals for the easy money of illegal arms sales,” stated U.S. Attorney Lynch. “We take very seriously our responsibility to stem the flow of illegal weapons through New York and ensure our national security. This case demonstrates the tremendous effectiveness and determination of the multiple federal law enforcement agencies tasked with taking on this global challenge.” Ms. Lynch expressed her grateful appreciation to the federal agencies that worked closely together to investigate the case.
The sentence was imposed by United States District Judge Eric N. Vitaliano. In addition to the 24 months in prison, Judge Vitaliano imposed a term of three years of supervised release. To date, four individuals have been convicted of weapons trafficking and export offenses in connection with this case.
Authorities initially learned of the arms smuggling scheme in August 2011 after counter-smuggling officers in China seized a package containing firearms with defaced serial numbers, which had been shipped from Queens, New York. Upon learning of the seizure of the weapons, U.S. law enforcement officials traveled to China to examine the evidence. The types of weapons seized by the Chinese authorities have been included by the President of the United States on the United States Munitions List, and may not be exported without a license from the U.S. State Department. Using forensic techniques, agents determined that one of the weapons seized in China had originally been purchased in North Carolina. Agents then traced that gun, and others, to Debose. Agents also learned that Debose had filed a false police report, in which he claimed the weapons had been stolen from his garage. Agents arrested Debose in a sting operation when he arrived at a meeting location with a truckload of guns for the next shipment. At the time of his arrest, Debose was a staff sergeant assigned to a Special Forces National Guard unit based in West Virginia.
The government’s case was prosecuted by Assistant United States Attorney Seth DuCharme, with assistance from Trial Attorney David Recker of the Department of Justice Counterespionage Section. Assistance also was provided by the U.S. Attorneys’ Offices in the Northern District of West Virginia and the Eastern District of North Carolina.
The Defendant
JOSEPH DEBOSE
Age: 30Former Owner of Employee Leasing Company Sentenced to Federal Prison for Failing to Pay Payroll Taxes to the IRSRead the Press Release
SALT LAKE CITY – Richard R. Whatley, a former owner of Alliance Staffing Management Inc. (ASM), was sentenced to 51 months in prison Thursday for willfully failing to account for and pay over employment taxes. Whatley was also ordered to pay $541,513.61 in restitution to the IRS. U.S. District Judge David Nuffer imposed the sentence.
In January 2010, a federal grand jury charged Whatley, a resident of Salt Lake County according to the indictment, with five counts of willfully failing to account for and pay over employment taxes, relating to three different employee leasing companies that he allegedly operated and controlled between the years 2001 and 2006 in Salt Lake City and American Fork. The employee leasing companies included American Employment Group Inc., ASM and Intermountain Consulting Group Inc. The tax loss associated with Whatley's criminal conduct during these years totaled more than $2.3 million. Whatley pleaded guilty in January 2013 to one of the charged counts.
According to the plea agreement, during the 2002 through 2004 tax years, Whatley held an ownership interest in and had the ability to control the finances of ASM, an employee leasing company. Whatley's control included determining the amount of employment taxes that had to be paid over to the IRS and the authority to decide which bills would be paid and which bills would not be paid. As charged in the superseding indictment, in the fourth tax quarter of 2003, Whatley caused the collection of employment taxes from ASM's employees' wages and then willfully failed to pay over $541,513 for the employees' portion of employment taxes to the IRS.
The case was investigated by special agents of IRS - Criminal Investigation and was prosecuted by Trial Attorneys Christopher J. Maietta and Stuart A. Wexler of the Justice Department's Tax Division.
More information about the Tax Division and its enforcement efforts is available at www.usdoj.gov/tax.
Former Government Contracting Executive Sentenced to 48 Months in Prison for Unauthorized Computer AccessRead the Press Release
ALEXANDRIA, Va. – Robert Edwin Steele, 38, of Alexandria, Va., was sentenced today to 48 months in prison for 14 counts of unauthorized access to a protected computer.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the Federal Bureau of Investigation’s Washington Field Office, made the announcement after United States District Judge Gerald Bruce Lee imposed the sentence.
“Cyber intrusions represent the greatest threat to corporate America in the 21st century,” said United States Attorney Neil H. MacBride. “This danger is omnipresent both from external hackers and criminal insiders. Today’s sentence should put all on notice that that the U.S. Attorney’s Office, along with our law enforcement partners, is committed to prosecuting these technically complex crimes and will seek punishment commensurate with the offense.”Steele was found guilty by a jury in Alexandria on May 3, 2013. According to court documents and evidence at trial, Steele worked at multiple companies involved in government contracting. On December 15, 2010, Steele resigned from one government contracting firm, described in court documents as Company A, due to a dispute about his compensation with Company A and Company B, another government contracting firm that was in the process of acquiring Company A.
When Steele left Company A on December 15, 2010, he gave verbal and written assurances to officials of Company A that he would not access its systems after his departure, and even urged them to shut down his existing accounts. That same day, however, Steele began logging into Company A’s e-mail systems using a secret administrative account which he learned about during his work for Company A. Steele immediately began downloading hundreds of proprietary documents using this administrative account.
Shortly after resigning, Steele joined another government contractor, Company C, that directly competed with Companies A and B for government contracts. At Company C, Steele worked as “Director of Law Enforcement” and prepared bids for government contracts on law enforcement projects. In that position, Steele undercut Company A’s bid on a government contract by approximately $100,000, while downloading Company A’s documents on the same contract. Although his attempt to win the bid failed, Steele continued to methodically sift through thousands of valuable documents stored on computers for Company A.
From December 15, 2010 until September 2, 2011, when agents for the Federal Bureau of Investigation seized the equipment that Steele had used to access the administrative account, Steele had accessed the computer systems of his former employer more than 79,000 times.
In addition to his 48-month term of imprisonment, Judge Lee also ordered Steele to serve two years of supervised release, imposed a fine of $50,000, and required restitution $335,977.68.
This case was investigated by the Federal Bureau of Investigation’s Washington Field Office. The Office of the Inspector General for the General Services Administration provided additional assistance.
Assistant United States Attorney Alexander T.H. Nguyen and Special Assistant United States Attorney Jonathan Keim prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.