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Tuesday 4 June 2013
Rapid City Man Sentenced on Escape ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota man charged with Escape from Custody was sentenced on May 30, 2013 by Chief Judge Jeffrey L. Viken, U.S. District Court.
Abraham Yellow Horse, age 24, was sentenced to 15 months' imprisonment and ordered to pay $100 to the Federal Crime Victims Fund.
In December 2012, Yellow Horse was serving part of a federal sentence at the Community Alternatives of the Black Hills, when he left without permission and did not return. He pled guilty on February 5, 2013.
This case was investigated by the U.S. Marshals Service and Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Yellow Horse was immediately turned over to the custody of the U.S. Marshal.
Rapid City Man Guilty of Illegal Reentry After DeportationRead the Press Release
United States Attorney Brendan V. Johnson announced that Marcos Miranda-Sanchez, age 57, of Rapid City, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy on May 29, 2013 and pled guilty to Illegal Reentry After Deportation.
The maximum penalty upon conviction is 10 years' imprisonment and/or a $250,000 fine.
In September 2012, while being arrested by the Rapid City Police Department for public intoxication, Miranda-Sanchez was found to be in the United States illegally, having previously been deported to Mexico.
The investigation was conducted by the U.S. Immigration and Customs Enforcement's Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Eric Kelderman.
A presentence investigation was ordered and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
Prolific Sex Trafficker Sentenced to 16 Years PrisonRead the Press Release
PORTLAND, Ore. – Rashad Q. Sanders, 28 was sentenced to 194 months in federal prison yesterday by U.S. District Judge Marco A. Hernandez, after pleading guilty to three counts of a superseding indictment charging him with the sex trafficking and transportation of three minors. Sanders was also sentenced to 10 years of supervised release and will have to register as a sex offender.
The investigation began in September of 2008 when Sanders made contact with two minors aged 16 and 17 via the internet. He ultimately convinced both of them to leave the State of Minnesota and travel to Portland, Oregon to work for him as prostitutes. Sanders purchased Greyhound Bus tickets for the minors and picked them up at the bus station when they arrived in Portland. Thereafter, Sanders took the girls to a local hotel and provided one of the minors with a false identification card that showed her to be over 18. He gave her instructions to register a room under the false name. The same day he helped the minors obtain cellular phones. Later in the evening he used his laptop computer to post pictures of the minors in commercial sex advertisements online via Craigslist.com. Thereafter, the victims started receiving calls from paying customers and engaged in sex acts for money. The girls complied with Sanders instructions to give him all the money they made from prostitution. After a short period of time, the girls realized they didn’t want to work for Sanders anymore and tried to leave. At that time, Sanders became angry and punched one of the girls in the head, knocking her down the hotel stairs. The other minor ran from the hotel, entered a stranger’s home, and asked if they would call 911. By the time the police arrived, Sanders had fled the area, leaving his laptop and other possessions.
On May 4, 2011, Sanders was arrested on a state charge of compelling prostitution at the Palms Hotel in Portland, Oregon. At the time,“C.C.”, a 15 year old, was a passenger in the front seat of his car. On that date, the police were called by staff at the Palms Hotel because Sanders would not pay for double occupancy on a room that he rented. When they contacted CC she said that Sanders was her pimp and brought her to the hotel for a prostitution date. She said that Sanders had drugged her and forced her to work as a prostitute for him. Inside Sanders’ car, the police found lingerie, condoms, and a cell phone that was used to receive calls from “C.C.” customers. “C.C.” was taken to a local hospital and interviewed. In the days and months that followed, “C.C.” began to tell a consistent story about how she met Sanders about a year earlier when she was 14 year old. Also, about how Sanders provided and injected her with methamphetamine. Additionally, she shared over time he convinced her to work for him as a prostitute beginning about December of 2010.
At the sentencing hearing, Sanders did not express any remorse for the minors and told Federal District Court Judge Hernandez that these minors are not victims and blamed them for his current situation.
This case was investigated by the Portland Police Bureau, FBI, and the FBI Child Exploitation Task Force. The case was prosecuted by Assistant U.S. Attorney Kemp Strickland.
Plea Agreement Filed in Case of Peckville Man Charged with Online Enticement of MinorsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that it has filed a plea agreement in U.S. District Court in Scranton today. The agreement is with Mark Kandel, age 53, of Peckville. In the agreement, Kandel will acknowledge that he engaged in the online enticement of minors and committed the offenses from January 2012 through November 2012.
The agreement, which must be accepted by the court, calls for a period of incarceration of at least 13 years but up to 19 years, to be determined by the Judge at the time of sentencing. As part of the plea agreement, Kandel will also receive a lifetime term of supervised release upon the completion of any term of incarceration and, will be subject to the registration and reporting requirements of the Adam Walsh Act.
Kandel was indicted by a federal grand jury in December 2012 on five counts of online enticement of a minor. He was taken into custody by federal agents. He remains detained.
According to United States Attorney Peter J. Smith, this case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by the FBI, the Lackawanna County District Attorney’s Office and the Blakely Police Department. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Owners of Smoke Shack and Smoke Shack 2 Sentenced to Federal PrisonRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced that Robert T. Guerrero, Jr., 36, and Jason Daniel Guerrero, 34, both of Meridian, Idaho, were sentenced today to federal prison terms as part of Operation Not For Human Consumption, which targeted illegal sales of drug paraphernalia and “spice” at 13 Treasure Valley businesses. The Guerrero brothers are the former owners and operators of two Treasure Valley headshops, Smoke Shack and Smoke Shack 2. On February 26, 2013, both men pleaded guilty to one count of offering drug paraphernalia for sale and one count of money laundering.
U.S. District Judge Edward J. Lodge sentenced Robert Guerrero to 18 months and Jason Guerrero to 15 months in prison, to be followed by three years of supervised release.
According to information presented at sentencing, Robert and Jason Guerrero were co-owners and operators of RG Distributing, Inc., doing business as Smoke Shack and Smoke Shack 2. The businesses were located at 124 13th Avenue South in Nampa, Idaho; and 482-A West Main Street in Kuna, Idaho. The Guerreros admitted to knowingly and intentionally offering drug paraphernalia for sale, which included various glass pipes, metal pipes, plastic pipes, water pipes, bongs, bubblers, vaporizers, one-hitters, grinders, gas masks, and urine cleansing kits. The items were primarily intended and designed for illegal drug use. Additionally, the Guerreros manufactured and distributed controlled substance analogues, commonly referred to as “spice” or “potpourri.” The Guerreros admitted that they received profits in excess of $120,000, but less than $200,000, from a specified source of unlawful activity. On May 1, 2012, Jason Guerrero purchased diamond jewelry from an area jewelry store for $18,000 in cash. On May 8, 2012, Robert Guerrero purchased diamond jewelry for $22,000 in cash. The Guerreros admitted that the cash used to purchase the diamond jewelry was derived from the unlawful sale of drug paraphernalia.
Robert and Jason Guerrero are among the 18 defendants charged in 2012 in Boise as part of Operation Not for Human Consumption. According to search warrant affidavits, nine of the 13 businesses were openly selling “spice,” a substance that tested positive for AM-2201. “Spice,” a synthetic form of cannabis, which is a psychoactive herbal and chemical product that, when consumed, mimics the effects of cannabis. In the spring of 2011, the Idaho Legislature criminalized the sale of “spice” under state law. In March 2011, the Drug Enforcement Administration placed five synthetic cannabinoids into Schedule I of the Controlled Substances Act. At the time Robert and Jason Guerrero manufactured and sold spice, AM-2201 was a controlled substance analogue. On July 10, 2012, President Obama signed the Synthetic Drug Abuse Prevention Act, which lists AM-2201 and 14 other chemicals as Schedule I controlled substances. It is against federal law to sell or offer for sale any paraphernalia that is primarily intended or designed for drug use, regardless of whether the seller advises their customers that the paraphernalia is for tobacco use only. The businesses are commonly referred to as “head shops.”
Operation Not for Human Consumption includes the cooperative law enforcement efforts of the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, Boise Police Department, Ada County Sheriff's Office, Canyon County Sheriff's Office, Nampa Police Department, Meridian Police Department, and the Canyon County Prosecutor's Office. The U.S. Marshals Service and Idaho State Police provided assistance.
Owner of Window Installation Business Admits <br /> Tax Evasion in New JerseyRead the Press Release
The owner of a window installation company located in Mt.Laurel, N.J. admitted today he converted to cash millions of dollars in the company’s gross receipts and used the money to pay his workers without withholding employment taxes announced, Paul J. Fishman, U.S. Attorney for the District of New Jersey, and Kathryn Keneally, Assistant Attorney General for the Tax Division.
Fred Marcus, 39, of Camden County, N.J., the owner and operator of Vortex Installations Inc., pleaded guilty before U.S. District Judge Mary L. Cooper in New Jersey federal court to an information charging him with one count of tax evasion.
According to documents filed in this case and statements made in court:
From early 2006 through the end of 2009, Marcus cashed approximately $2.8 million in Vortex Installations’ gross receipts at a check casher. Marcus used $1,025,868 of that money to pay cash wages to his workers, which he did not report to the Internal Revenue Service (IRS) and from which he did not withhold employment taxes. From 2006 through 2008, Marcus failed to file IRS Forms 941 – Employer’s Quarterly Federal Tax Returns – in which he was required to report the wages paid to his employees. In 2009, Marcus filed false Forms 941, in that he failed to report the cash wages that he paid to Vortex employees.
On the count of tax evasion, Marcus faces a maximum potential penalty of five years in prison and a fine of $250,000, along with restitution to the IRS. Sentencing is scheduled for Sept. 19, 2013.
Assistant Attorney General Keneally and U.S. Attorney Fishman credited special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s guilty plea.
The government is represented by Tax Division Trial Attorney Tino M. Lisella. Additional information about the Tax Division and its enforcement efforts may be found at: www.justice.gov/tax.
Owner of Window Installation Business Admits Tax EvasionRead the Press Release
TRENTON, N.J. – The owner of a window installation company located in Mt.Laurel, N.J., admitted today he converted to cash millions of dollars in the company’s gross receipts and used the money to pay his workers without withholding employment taxes, U.S. Attorney Paul J. Fishman, District of New Jersey, and Assistant Attorney General Kathryn Keneally of the U.S. Department of Justice, Tax Division, announced today.
Fred Marcus, 39, of Camden County, the owner and operator of Vortex Installations Inc., pleaded guilty before U.S. District Judge Mary L. Cooper in Trenton federal court to an Information charging him with one count of tax evasion.
According to documents filed in this case and statements made in court:
From early 2006 through the end of 2009, Marcus cashed approximately $2.8 million in Vortex Installations’ gross receipts at a check casher. Marcus used $1,025,868 of that money to pay cash wages to his workers, which he did not report to the IRS and from which he did not withhold employment taxes. From 2006 through 2008, Marcus failed to file IRS Forms 941 – Employer’s Quarterly Federal Tax Returns – in which he was required to report the wages paid to his employees. In 2009, Marcus filed false Forms 941, in that he failed to report the cash wages that he paid to Vortex employees.
On the count of tax evasion, Marcus faces a maximum potential penalty of five years in prison and a fine of $250,000, along with restitution to the IRS. Sentencing is scheduled for Sept. 19, 2013.
Assistant Attorney General Keneally and U.S. Attorney Fishman credited special agents of IRS–Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for the investigation leading to today’s guilty plea.
The government is represented by Tax Division Trial Attorney Tino M. Lisella. Additional information about the Tax Division and its enforcement efforts may be found at: www.justice.gov/tax.
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Defense counsel: John Crayton Esq., Moorestown, N.J.Marcus, Fred Information
Owner of Gourmet Food Markets Pleads Guilty in White Plains Federal Court to Participating in Massive Tax Fraud Scheme That Concealed over $50 Million in Income from the IRSRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ADEM ARICI pled guilty today in White Plains federal court to participating in a tax fraud conspiracy in which more than $50 million in gross receipts from the fine foods supermarkets in which he had an ownership interest was hidden from federal and state tax authorities. ARICI also pled guilty to four counts of subscribing to false and fraudulent federal personal income tax returns, nine counts of aiding and assisting in the preparation of false and fraudulent federal corporate, partnership, and payroll tax returns, and one count of witness tampering. ARICI pled guilty before U.S. Magistrate Judge Paul E. Davison. He is the seventh member of the conspiracy to plead guilty, and cases are pending against two additional co-conspirators who remain at large.
Manhattan U.S. Attorney Bharara stated: “Adem Arici and his co-conspirators appeared to be running a legitimate and very successful business, but in reality he was little more than a serial and flagrant tax cheat – failing to pay either personal or business-related taxes on millions of dollars in income. This Office has absolutely no tolerance for those who violate the tax laws and fail to pay their fair share.”
According to the Superseding Indictment and other documents filed in this case:
ARICI had an ownership interest and played an active management role in the following gourmet food markets (the “Markets”) in New York, New Jersey, and Connecticut:
- Zeytuna, located in New York, New York.
- The Amish Market, located in New York, New York.
- Zeytinia Gourmet, located in Croton-on-Hudson, New York.
- Zeytinia Fine Food Store, located in Oakland, New Jersey.
- Zeytinia Fine Food Store, located in Atlantic City, New Jersey.
- Zeytinia Gourmet Market in Wilton, Connecticut.
The Markets’ customers typically paid for their purchases with either cash or credit cards. Credit card payments, and a small portion of the cash receipts, were deposited into bank accounts maintained by each Market. The remaining cash was diverted from the books and records of the Markets and used to pay business expenses, including the Markets’ employee payrolls. The owners of the Markets paid numerous employees, including undocumented foreign workers, in cash. They then took the remaining cash and divided it up amongst themselves.
The owners of the Markets failed to withhold payroll taxes and to pay those taxes to the IRS and caused the preparation and filing with the IRS of forms that falsely and fraudulently understated the true salaries paid to employees. In many cases, the owners failed to report the salaries of employees entirely. The owners also maintained a second set of books and other records which recorded the true income and expenses of the Markets and reflected the cash that was skimmed. The second set of books showed that the owners of the Markets failed to report in excess of $50 million in gross receipts during the years 2004 through 2009.
With respect to the witness tampering count, on November 18, 2011, ADEM ARICI counseled an individual with whom he had unlawfully traveled to Cuba to tell law enforcement agents with the Department of Homeland Security, among other things, that the individual did not travel to Cuba, did not know ARICI, and had not met with ARICI in Cuba, all of which was untrue.
ARICI, 51, of Easton, Connecticut, is scheduled to be sentenced by Chief United States District Judge Loretta A. Preska on September 17, 2013. He faces a sentence of up to 54 years in prison and also faces restitution and forfeiture orders each in the amount of up to $15 million.
Mr. Bharara praised the outstanding efforts of the Internal Revenue Service, Criminal Investigation, and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. He also thanked U.S. Department of Justice’s Tax Division for its significant assistance in the investigation.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Jeffrey Alberts, Lee Renzin, and Perry A. Carbone are in charge of the prosecution.
The charges and allegations contained in the Indictment against the remaining defendants, Omer Ipek and Atilla Yayla, and Marc Verzani, are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Oglala Man Indicted for Sexual Abuse, Assault, Child Abuse, Incest, and Witness IntimidationRead the Press Release
United States Attorney Brendan V. Johnson announced that an Oglala, South Dakota man has been indicted by a federal grand jury for allegedly sexually abusing and threatening a child under the age of 12 between 2007 and 2010 at Allen, South Dakota.
Norman Yellow Hawk, age 47, was indicted by a federal grand jury on May 21, 2013 for aggravated sexual abuse, assault resulting in serious bodily injury, felony child abuse and neglect, aggravated incest, and witness intimidation. Yellow Hawk appeared before U.S. Magistrate Judge Veronica L. Duffy on May 24, 2013 and pled not guilty to the superseding indictment.
The maximum penalty upon conviction is life imprisonment and a $250,000 fine. The charges are merely accusations and Yellow Hawk is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation.
Yellow Hawk was remanded to the custody of the U.S. Marshal. A trial date has been set for July 29, 2013.
Navajo Man Sentenced to 110 Months Imprisonment for Assault and Use of A Firearm During A Crime of ViolenceRead the Press Release
PHOENIX – On June 3, 2013, Jerome Lee Buckinghorse, 30, of Pinon, Ariz., was sentenced by U.S. District Judge G. Murray Snowto 110 months imprisonment. Buckinghorse pleaded guilty on March 19, 2013, to one count of assault resulting in serious bodily injury and one count of use of a firearm during a crime of violence.
On August 28, 2012, Buckinghorse and the victims got into an altercation on the Navajo Reservation during which Buckinghorse retrieved a rifle and used the butt of the rifle to hit two victims in the face. When the third victim attempted to flee, Buckinghorse shot him in the back with the rifle.
Buckinghorse received a sentence of 50 months imprisonment for assault resulting in serious bodily injury and a sentence of 60 months imprisonment for the use of a firearm during a crime of violence. Judge Snow ordered the sentences to run consecutive, resulting in a cumulative sentence of 110 months imprisonment.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution is being handled by Cassie Bray Woo, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-12-8240-PCT-GMS
RELEASE NUMBER: 2013-045_BuckinghorseFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Naturalized U.S. Citizen Sentenced to 60 Months for Distributing MethRead the Press Release
BOISE – Alonso Martinez, 26, of Earlimart, California, was sentenced today to 60 months in prison for possession of 50 grams or more of actual methamphetamine with intent to deliver, U.S. Attorney Wendy J. Olson announced. Martinez, born in Mexico but a naturalized citizen of the United States, was also ordered to pay a $500 fine. Following his prison term, Martinez faces possible deportation. He appeared today before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
Martinez pleaded guilty to the charge on November 5, 2012. According to court documents, on October 17, 2011, Martinez traveled from California to Idaho for the purpose of distributing methamphetamine at the direction of his co-conspirators. Martinez admitted that he met with co-defendant Alfredo Vasquez-Dominguez at a location in Meridian, Idaho, and subsequently delivered more than 50 grams of actual methamphetamine to him.
Eight co-defendants sentenced earlier include Alfredo Dominguez-Villareal, a/k/a Alfredo Vasquez-Dominguez, a Mexican national, to 150 months in prison; Nelson Fernando Garcia-Soto, a Mexican national, to 148 months; Jimenez Valencia a/k/a Jorge Jimenez, a Mexican national, to 57 months; Juan Carlos Arredondo-Sicairos a/k/a Victor Kalil Medina-Feliciano, a Mexican national, to 120 months; Delia Garcia-Pineda, a Mexican national, to 37 months; Tanna Spencer, of Parma, Idaho, to 15 months; Hector Morales, of Delano, California, to six months; and Cynthia Casillas, also of Delano, to three years’ probation.
The final defendant, Samuel Chavez, 32, of New Meadows, Idaho, is scheduled to be sentenced on June 24, 2013.
The case was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Drug Enforcement Administration in conjunction with the Boise Police Department, Nampa Police Department, and the Ada County Sheriff's Office.
The OCDETF program is a federal multi agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. Federal task force members include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), Internal Revenue Service-Criminal Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and U.S. Marshals Service.
Multimillion-Dollar Real Estate Ponzi Schemer Sentenced to Nine Years in Prison for Securities Fraud and Money LaunderingRead the Press Release
Perpetrator of Investment Scheme Also Ordered to Pay More Than $28.6 Million
NEWARK, N.J. – A Somerset County, N.J., man was sentenced today to 108 months in prison for his role in defrauding victims of an investment scheme by misusing their capital contributions and misrepresenting the performance of their investments, U.S. Attorney Paul J. Fishman announced.
David Connolly, 51, of Watchung, N.J., previously pleaded guilty before U.S. District Judge William J. Martini to two counts of a superseding indictment charging him with securities fraud and money laundering. In addition to the prison term, Judge Martini, who imposed the sentence today in Newark federal court, ordered Connolly to pay $18,732,775 in restitution and forfeit $9,920,000.
According to documents filed in this case and statements made in court:
From at least 2006 through October 2009, Connolly orchestrated a real estate investment fraud scheme in which he took in more than $50 million from more than 200 victims, causing losses of at least $18 million.
To induce victims to invest, Connolly made numerous materially false and misleading statements and omissions. He told victims their money would be used to purchase a specific property, and the property would generate rental income that would be used to pay investors monthly distributions. Connolly also told victims their money would be held in escrow until the closing of a purported real estate transaction and each property would be financially independent from all the others. Connolly misrepresented the amount of equity victims had in the properties, the condition of the properties, and the financial performance of the properties. Although the investment properties experienced significant negative cash flow, Connolly told investors they were performing well.
Connolly took significant portions of his victims’ money, which had been provided for specific real estate transactions, and used it for other purposes without victims’ knowledge. He funded unrelated real estate transactions in which he was engaged; paid prior victims; and paid himself. The scheme collapsed in the summer of 2009, after Connolly began defaulting on the mortgage payments for the investment properties.
In addition to the prison term, restitution and forfeiture, Judge Martini sentenced Connolly to serve three years of supervised release.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation. He also thanked special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, for their important contributions to the investigation.
The government is represented by Assistant U.S. Attorney Charlton A. Rugg and Senior Litigation Counsel Leslie F. Schwartz of the U.S. Attorney’s Office Criminal Division in Newark.
If you believe you are a victim of or otherwise have information concerning this alleged scheme, you are encouraged to contact the FBI at 973-792-3000.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
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Defense counsel: Gerald M. Saluti Esq., Newark
Mountain Home Man Sentenced for Distributing MethRead the Press Release
BOISE – Raul Garcia-Rosales, 39, of Mountain Home, Idaho, was sentenced today in United States District Court in Boise to 21 months in prison for possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Garcia-Rosales to serve three years of supervised release. He pleaded guilty to the charge on November 27, 2012.
According to the plea agreement, Garcia-Rosales admitted that on September 14, 2011, he received approximately one pound of methamphetamine from his co-defendant, Jamie Guerrero, in Elmore County, Idaho, and then distributed it to an undercover officer at a truck stop in Mountain Home.
Guerrero, 27, of Glenns Ferry, Idaho, also pleaded guilty on November 27, 2012, to possession with intent to distribute methamphetamine. According to the plea agreement, Guerrero admitted that he supplied the methamphetamine to Garcia-Rosales. He is scheduled to be sentenced on August 26, 2013, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The case was the result of a joint investigation of the Organized Crime and Drug Enforcement Task Force (OCDETF), led by the Idaho State Police and the Drug Enforcement Administration, in conjunction with the Elmore County Sheriff’s Office. The OCDETF program is a federal multi agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. Federal task force members include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the DEA, the Federal Bureau of Investigation (FBI), Internal Revenue Service-Criminal Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and U.S. Marshals Service.
Minneapolis Felon Pleads Guilty to Possessing A .22-caliber PistolRead the Press Release
MINNEAPOLIS—Yesterday in federal court in St. Paul, a 23-year-old Minneapolis man pleaded guilty to being a felon in possession of a .22-caliber pistol. On June 3, 2013, Marcus Rashad Davis specifically pleaded guilty to one count of being a felon in possession of a firearm. Davis, who was indicted on January 22, 2013, entered his plea before United States District Court Judge Susan Richard Nelson.
In his plea agreement, Davis admitted that on June 15, 2012, he possessed the semi-automatic weapon. He was arrested after running from police, who were responding to a report of a man with a gun. Because he is a felon, Davis is prohibited under federal law from possessing a firearm at any time. His prior convictions include manufacture/delivery of a controlled substance (2008), possession with intent to deliver cannabis (2008), and burglary of a vehicle (2011), all in Illinois.
For this current offense, Davis faces a potential maximum penalty of ten years in 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 Minneapolis Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorney Richard Newberry.
The case was charged federally through Project Exile Minneapolis. That law enforcement initiative was launched on July 22, 2010, as part of a city-wide effort to reduce gun violence. Through Project Exile, the Minneapolis Police Department and the ATF work together to apprehend serial criminals for violations of gun laws. Then, the Hennepin County Attorney’s Office teams up with the U.S. Attorney’s Office to determine where those offenders will most effectively be prosecuted – state or federal court. Those determinations are based on the offenders’ criminal histories and current charges, among other factors. To date, the U.S. Attorney’s Office has brought charges against more than a dozen serious habitual criminals through Project Exile Minneapolis.Michigan Doctor Pleads Guilty to Health Care FraudRead the Press Release
BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that Fitzgerald Anthony Hudson, 53, of Dearborn Heights, Michigan, pleaded guilty before Chief U.S. District Chief Judge William M. Skretny, to health care fraud. The fraud related to the defendant lying about his qualifications to practice medicine. The charge carries a maximum penalty of 10 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that in August 2008, the defendant submitted an application to Jones Memorial Hospital in Wellsville, N.Y. for appointment to the medical staff. Prior to that, Hudson was an undergraduate student at York University in Ontario, Canada from September 1987 to August 1990, however the defendant did not obtain enough credits to graduate and did not earn a Bachelor’s Degree. The defendant then attended medical school at Ross University after which he worked in the Warren Hospital Family Practice Residency Program in Phillipsburg, New Jersey from July 2002 until July 2003. At that time, Hudson was suspended from his duties as a resident and dismissed from the residency program due to academic incompetence. This means, in essence, that the defendant never received his medical degree or license and was not legally qualified to practice medicine.
During the course of this prosecution, the government presented evidence that while employed at Jones Memorial Hospital, Hudson treated a five year old child who subsequently died shortly after being treated by the defendant. That case is now the subject of an ongoing wrongful death civil suit in state court.
In addition, from February 2008 to June 2008, the defendant was employed at the Emergency Department at the Claxton-Hepburn Medical Center in Ogdensburg, N.Y. Hudson resigned in June of 2008 due to an unfavorable incident.
“Each and every day, millions of Americans entrust their health to the care of trained medical professionals,” said U.S. Attorney Hochul. “By misrepresenting his background and education, this defendant put in danger the lives of those who came to him seeking emergency care. This Office will continue to vigorously prosecute all fraud, particularly where such crime affects that which is most precious to us all – our health.”
In the application the defendant submitted to Jones Memorial Hospital, he: (a) indicated that he disassociated with the Claxton-Hepburn Medical Center because it was "too far away;" (b) indicated that he had never been denied or had suspended or restricted completion of training or certification of completion of training by any healthcare facility; and (c) stated that he earned a BS degree from York University. Hudson was aware of the false statements and representations at the time he made them, and acted knowingly and willfully in submitting the false application to Jones Memorial Hospital.
As a result of the defendant’s false application for medical staff appointment, Hudson was granted privileges at Jones Memorial Hospital in Emergency Medicine. Between August 2008 and November 2009, the defendant worked as a physician at the Emergency Department at Jones Memorial Hospital, and based on that work, payments totaling approximately $227,548.35 were received from Medicare, BlueCross BlueShield of Western New York, Univera Healthcare, and Independent Health for services rendered by the defendant.
Sentencing is scheduled for September 9, 2013 at 9 a.m. before Judge Skretny.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Richard M. Frankel, Acting Special Agent in Charge, Special Agents of the U.S. Department of Health and Human Services, Office of Inspector General, Office of Investigations under the direction of Thomas O'Donnell, Special Agent in Charge, and Investigators with the Medicaid Fraud Control Unit of the New York State Attorney General’s Office.Mexican Cocaine Trafficker Sentenced to 292 MonthsRead the Press Release
NORFOLK, Va. – Omar Antonio Martinez, 31, of Sonora, Mexico, was sentenced today to 292 months in prison, followed by 5 years of supervised release, for his role in a large-scale cocaine trafficking organization.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar.Martinez pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine on October 17, 2012. According to court documents, Martinez was a member of a cocaine distribution ring that extended from the Hampton Roads area to other locations throughout the United States. In approximately 2006, Martinez approached several lower-level drug dealers in the area and recruited them to distribute cocaine on his behalf. After selling the cocaine to multiple customers, the dealers would then provide the proceeds of these cocaine sales to Martinez, in order to purchase more cocaine. At the time of his arrest in Hampton, Virginia, in May 2012, Martinez was found with 2.5 kilograms of cocaine, a kilogram press, digital scales, cocaine packaging materials, several thousand dollars, and a handgun. All told, from 2006 through May 2012, Martinez was responsible for transporting, manufacturing, and distributing over 100 kilograms of cocaine throughout Tidewater.
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.
This case was investigated by the Drug Enforcement Administration and the Federal Bureau of Investigation. Assistant United States Attorney V. Kathleen Dougherty prosecuted the case on behalf of the United States.Mexican Citizen to Be Deported for Illegal Reentering U.S.Read the Press Release
JOHNSTOWN, Pa. - A citizen of Mexico entered a plea of guilty to a one-count indictment and has been sentenced in federal court to two months in prison, no supervised release, and ordered immediately turned over to the custody of the United States Immigration and Customs Enforcement for deportation to Mexico on his conviction of re-entry of a removed alien, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Adrian Flores-Flores, 22, of Bedford, Pa.
According to information presented to the court, on March 27, 2013, Flores-Flores, an alien who had been deported from the United States on June 19, 2009, was found in Bedford, Pa. He had unlawfully re-entered this country without receiving permission from the Secretary of the Department of Homeland Security to do so.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Department of Homeland Security/Immigration and Customs Enforcement for the investigation leading to the successful prosecution of Flores-Flores.
Lower Brule Man Indicted for Controlled Substance ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota man has been indicted by a federal grand jury.
Joshua Brouse, age 29, was indicted by a federal grand jury on May 15, 2013 for Possession with Intent to Distribute a Controlled Substance Analogue, and Use of a Communication Facility in Causing or Facilitating the Commission of a Felony Under the Controlled Substances Act. Brouse appeared before U.S. Magistrate Judge Mark A. Moreno on May 30, 2013 and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years of imprisonment, a $1,000,000 fine, or both; 3 years of supervised release, an additional 2 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations, and Brouse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Brouse was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Lower Brule Man Charged with Controlled Substance and Firearm ViolationsRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota man has been indicted by a federal grand jury.
Caleb Mills, age 24, was indicted by a federal grand jury on May 15, 2013 for Possession with Intent to Distribute a Controlled Substance Analogue, Use of a Communication Facility in Causing or Facilitating the Commission of a Felony Under the Controlled Substance Act, and Possession of a Firearm by a Prohibited Person. Mills appeared before U.S. Magistrate Judge Mark A. Moreno on May 30, 2013 and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years of imprisonment, a $1,000,000 fine, or both; 3 years of supervised release, an additional 2 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges are merely accusations, and Mills is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force and the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Kathryn N. Rich is prosecuting the case.
Mills was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Lower Brule Man Charged with Assaulting, Resisting and Impeding Federal OfficersRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota man has been indicted by a federal grand jury.
Cole Brouse, age 19, was indicted by a federal grand jury on May 15, 2013 for Assaulting, Resisting and Impeding Federal Officers. Brouse appeared before U.S. Magistrate Judge Mark A. Moreno on May 30, 2013, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years of imprisonment, a $250,000 fine, or both; 3 years of supervised release, an additional 2 years of supervised release upon revocation; and a mandatory $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation, and Brouse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service and the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Brouse was released on bond pending trial. A trial date has not been set.
Louisville Physician Pleads Guilty to Structuring Financial Transactions to Evade ReportinRead the Press Release
– Agrees to forfeit $66,980.
LOUISVILLE, Ky. - A Louisville physician pleaded guilty in U.S. Federal Court, before U.S. Magistrate Judge Dave Whalin, on May 31, 2013, to four felony counts of structuring transactions with a financial institution in order to evade reporting requirements announced David J. Hale, United States Attorney for the Western District of Kentucky.
Dr. Ronald J. Hamm, age 61, who owned and operated Hameron Weight Loss Center, Inc., was charged with making ten cash deposits on ten different days, all in amounts under $10,000 and totaling $66,980, in order to evade the reporting requirements of the Bank Secrecy Act. (Financial institutions have a legal obligation to report transactions in excess of $10,000.)
Dr. Hamm's plea agreement includes the forfeiture of $66,980 as proceeds of the crime, including over $30,000 seized by the Internal Revenue Service and over $35,000 to be paid to satisfy a money judgment, representing the remainder of the proceeds of the criminal conduct.
The structuring charges, to which Dr. Hamm pleaded guilty, each carry a penalty of up to five years in prison and a fine of up to $250,000. The defendant is scheduled to appear for sentencing before Judge John G. Heyburn on August 19, 2013, in Louisville.
This case is being prosecuted by Assistant United States Attorney Jason Snyder and is being investigated by the Internal Revenue Service Criminal Investigation Division's Financial Crimes Task Force and the Jefferson County Sheriff's Office.
Lockport Man Convicted of Drug Conspiracy ChargeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Damian Ard 32, of Lockport, N.Y., pleaded guilty before U.S. District Judge William M. Skretny, to conspiracy to possess with intent to distribute, and to distribute, cocaine base. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, a $5,000,000 fine, or both.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that from 2009 through August 2010, Ard distributed cocaine base, cocaine, heroin, marijuana, Ecstasy, and prescription pills in the City of Lockport. On August 17, 2010, law enforcement officers executed search warrants at several locations including Ard’s residence on Chapel Street in Lockport. During the search, officers seized three guns, magazines, ammunition, plastic baggies containing marijuana; and surveillance equipment.
Ard was arrested along with 22 others in August of 2010 for narcotics trafficking. To date 17 defendants have been convicted.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, The Niagara County Drug Enforcement Task Force, under the direction of Sheriff James Votour, and the Niagara Frontier Transit Authority Police, under the direction of Chief George Gast.
Sentencing is scheduled for October 1, 2013 at 9:00 a.m. before Judge Skretny.Lenny Cain Convicted in Oxycodone ConspiracyRead the Press Release
Baltimore, Maryland – A federal jury today convicted Lenny Cain, age 36, of Baltimore, Maryland, for conspiracy to distribute and possess with intent to distribute oxycodone, and for possession with intent to distribute oxycodone.
The conviction was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Anne Arundel County Police Acting Chief Lt. Colonel Pamela R. Davis; and Howard County Police Chief William McMahon
According to the testimony at his two week trial, beginning in 2010, Cain and the other leaders of the conspiracy, including Joseph Church, recruited women working in doctors’ offices to assist them in obtaining and verifying fraudulent prescriptions for oxycodone, also known as, OxyContin and Percocet. The leaders also recruited individuals, called “runners,” to get the fraudulent prescriptions filled at pharmacies in the Baltimore area. Evidence presented at trial showed that at least 14 fraudulent prescriptions had Cain’s fingerprints on them. Cain was also captured on surveillance video at two pharmacies – one where he attempted to get a fraudulent prescription filled in the name of another individual, and another where he followed one of the “runners” who was attempting to get a fraudulent prescription filled, into the pharmacy.
Seven co-conspirators, including Joseph Church, age 41, of Baltimore, have previously pleaded guilty to their roles in the conspiracy. Bruce Breland, age 56, and Charles Fell, age 27, both of Baltimore, have been sentenced to 27 months and to two years in prison, respectively. The remaining defendants are awaiting sentencing.
Cain faces a maximum sentence of 30 years in prison for the conspiracy and for possession with intent to distribute oxycodone. U.S. District Judge Ellen L. Hollander has scheduled sentencing for September 3, 2013 at 12:00 p.m.
United States Attorney Rod J. Rosenstein praised the DEA, HHS Office of Inspector General and the Anne Arundel and Howard County Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kenneth S. Clark, Clinton J. Fuchs and Mushtaq Gunja, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Judge Sentences Glenshaw Man to 5½ Years in Prison for Possessing Sexually Explicit Videos of MinorsRead the Press Release
PITTSBURGH - An Allegheny County man has been sentenced in federal court to 66 months imprisonment and to be followed by 10 years supervised release on his conviction of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Cathy Bissoon imposed the sentence on Daniel L. King, 24, of Glenshaw, Pa.
According to information presented to the court, on June 21, 2012, King possessed visual depictions, namely, videos in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Immigration and Customs Enforcement, Homeland Security Investigations and the Pennsylvania State Police for the investigation leading to the successful prosecution of King.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Johnstown Felon Sentenced to 92 Months in Prison for Unlawfully Possessing A GunRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been sentenced in federal court to 92 months in prison and three years supervised release on his conviction of unlawful possession of a firearm by a convicted felon, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on John A. Hinton, 32, as the sole defendant.
According to information presented to the court, on April 3, 2012, Hinton, who had been convicted in 2007 in Cambria County, Pa., of delivery of cocaine, unlawfully possessed an H & R pistol. Federal law prohibits persons who have been convicted of a crime punishable by imprisonment for more than one year from possessing ammunition or firearms. Delivery of cocaine is such a crime.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Johnstown Police Department for the investigation leading to the successful prosecution of Hinton.
According to Mr. Hickton, Hinton was prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Jamesville Man Enters Guilty Plea to False Tax ReturnRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York announces that LLOYD F. MARTIN, JR., (68, of Jamesville, NY) entered a guilty plea to the felony offense of subscription of a false income tax return, in violation of Title 26, United States Code, Section 7206(1). The defendant is facing a statutory maximum sentence of 3 years imprisonment, a maximum fine of $250,000.00 and restitution to the IRS in the amount of $184,655.00. MARTIN is scheduled to be sentenced on October 13, 2013, before the Honorable Frederick J. Scullin.
During the plea hearing on June 4, 2013, MARTIN admitted the following. From 2006 through 2008, MARTIN was the president of a commercial construction company named Henderson-Johnson Co., Inc., located in Syracuse, New York. During that time, MARTIN realized income in the approximate amount of $657,640.57 from Henderson-Johnson over and above the income he reported on his personal federal income tax returns. Specifically, MARTIN received income from Henderson-Johnson in the form of payments toward personal expenses, such as the purchase and maintenance of a jet airplane. MARTIN failed to include $255,645.99 as income on his 2006 personal federal tax return, $241,892.78 as income on his 2007 personal federal tax return, and $160,101.80 as income on his 2008 personal federal tax return. Each of these returns were made and signed by him under penalty of perjury. MARTIN knew these tax returns were false because each substantially under reported his income and tax liability for that year. The foregoing resulted in a tax deficiency to the IRS totaling $184,655.00.
This prosecution resulted from an investigation conducted by the Internal Revenue Service, Criminal Investigations, Syracuse, New York. The case was prosecuted by Assistant United States Attorney Ransom P. Reynolds. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315) 448-0672.
Jackson Woman Pleads Guilty to Stolen Identity Refund FraudRead the Press Release
Jackson, Miss – Nikki Thomas, of Jackson, pled guilty on May 28, 2013 to conspiring to defraud the United States and aggravated identity theft, announced U.S. Attorney Gregory K. Davis, Resident Agent in Charge Allen Bryant of the U.S. Secret Service, and Acting Special Agent in Charge Damon Rowe of Internal Revenue Service Criminal Investigation.
Thomas admitted to conspiring to defraud the government by using personal identifying information, including names and social security numbers which had been stolen from the Central Mississippi Correctional Facility located in Rankin County, and from other locations. The information was then used by Thomas and her co-conspirators to file false tax returns with the Internal Revenue Service. The tax returns claimed that the tax payers were owed a refund. The refunds were then electronically deposited into various bank accounts in Mississippi belonging to Thomas and her co-conspirators.
Thomas will be sentenced on August 8, 2013 and faces a total maximum penalty of twelve years in prison and a $250,000 fine.
This case was investigated by the U.S. Secret Service and Internal Revenue Service Criminal Investigation with assistance from the Mississippi Attorney General’s Office, the Mississippi Department of Corrections and the Mississippi Department of Revenue. Assistant U.S. Attorney Pat Lemon is prosecuting the case.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Jackson Woman Pleads Guilty to Stolen Identity Refund FraudRead the Press Release
Jackson, Miss – S’ade Tyler, of Jackson, pled guilty on May 28, 2013 to conspiring to defraud the United States and wire fraud, announced U.S. Attorney Gregory K. Davis, Resident Agent in Charge Allen Bryant of the U.S. Secret Service, and Acting Special Agent in Charge Damon Rowe of Internal Revenue Service Criminal Investigation.
Tyler admitted to conspiring to defraud the government by using personal identifying information, including names and social security numbers, which had been stolen from the Central Mississippi Correctional Facility located in Rankin County and from other locations. The information was then used by Tyler’s co-conspirators to file false tax returns with the Internal Revenue Service. The tax returns claimed that the tax payers were owed a refund. The refunds were then electronically deposited into various bank accounts in Mississippi belonging to Tyler and her co-conspirators.
Tyler will be sentenced on August 15, 2013 and faces a maximum penalty of thirty years in prison and a $250,000 fine.
This case was investigated by the U.S. Secret Service and Internal Revenue Service Criminal Investigation with assistance from the Mississippi Attorney General’s Office, the Mississippi Department of Corrections and the Mississippi Department of Revenue. Assistant U.S. Attorney Pat Lemon is prosecuting the case.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Ithaca Defense Contractor Settles Whistleblower SuitRead the Press Release
United States Attorney Richard S. Hartunian announced today that his office has settled a civil prosecution under the False Claims Act. This case involves allegations that an Ithaca-based defense contractor, Agave BioSystems, Inc. and its President, Noe Salazar, submitted false claims to the United States Department of Defense, fraudulently seeking payment for labor expenses when in fact those expenses were not incurred, and the claimed labor in fact was not performed. The defendants have paid $300,000.00 to settle this matter.
This case started as a “whistleblower” or qui tam lawsuit filed by a former Agave employee, Rafik Tawadrous. In February 2010, Mr. Tawadrous filed a Complaint which alleged that Agave had committed fraud in its performance of government contracts. This Complaint was then investigated by agents and auditors from several federal agencies: the Defense Criminal Investigative Service (DCIS), U.S. Army Criminal Investigation Division (Army CID), the Defense Contract Audit Agency (DCAA), and the Federal Bureau of Investigation (FBI). The investigation confirmed material parts of Mr. Tawadrous’ allegations. The United States then entered this lawsuit and filed its own Complaint (“Complaint in Intervention”), reflecting those investigative findings, on April 26, 2013.
The government’s Complaint alleges in part the following: Agave is a small company located at 401 East State Street, Ithaca, New York. Agave largely performs scientific research and other work related to government defense contracts. Noe Salazar was the CEO and President of Agave until his death on October 6, 2012. In 2006, the Department of Defense conducted an audit of Agave’s claimed expenses. During that audit, Noe Salazar created two false time cards for one family member, namely his daughter, which claimed that his daughter had performed work on a government contract when in fact she had not. Noe Salazar submitted the false time cards to the Department of Defense. Also, Agave claimed it had incurred salary expenses for other family members, when these family members had not performed work to the extent claimed by Agave. Agave submitted the false and inflated salary expenses to the Department of Defense, which relied upon them in calculating the monies that would be paid to Agave, regarding approximately 44 contracts with the U.S. Army, Navy, Air Force, and Defense Threat Reduction Agency.
The government’s Complaint alleges misconduct only by Noe Salazar and Agave, and does not allege misconduct by any other person, family member or entity.
This action was filed pursuant to the federal qui tam statute, 31 U.S.C. §3730, which allows a private person to file a civil action on behalf of the United States, alleging that false claims have been submitted to the United States. This is part of the False Claims Act, which allows the government to file civil prosecutions, typically for defense procurement fraud and health care fraud. After a qui tam Complaint is filed, the United States commences an investigation and determines whether to join the lawsuit (“intervene”) or to decline intervention. In this case, as discussed above, the United States commenced an investigation and determined that it would join the lawsuit. Pursuant to court order and federal law, the original Complaint in this case remained under seal, while the United States conducted its investigation and determined whether to intervene. The person who initially files the lawsuit (“relator”) is entitled to a share of the proceeds. The relator in this case, Rafik Tawadrous, will receive 18% of the settlement proceeds ($300,000.00), or $54,000.00.
Craig W. Rupert, Special Agent in Charge, U.S. Department of Defense, Defense Criminal Investigative Service, stated that “Schemes to intentionally overbill the United States Department of Defense by any company or individual erode public confidence and undermine the mission of our military services. The DCIS and its law enforcement partners will continue to tirelessly pursue and investigate fraud allegations in order to safeguard the American taxpayer and military members.”
Richard S. Hartunian, United States Attorney for the Northern District of New York, stated that “The United States Attorney’s Office is committed to pursuing those who defraud the government under the False Claims Act, especially those who defraud the Department of Defense. When the military is defrauded, less money is available to support and protect our troops abroad. Such fraud is inexcusable.”
This matter is assigned to Assistant U.S. Attorney Charles E. Roberts. News inquiries should be directed to Executive Assistant United States Attorney John Duncan, tele. (315) 448- 0672.
The relator, Rafik Tawadrous, is represented by David Koenigsberg, Esq., of New York City, tele. (212) 223-2100.
Indictment Alleges Child Porn Charges Against Reading ManRead the Press Release
Christopher Mailloux, 22, of Reading, Pennsylvania was charged by Indictment, filed today, with two counts of production of child pornography and two counts of possession of child pornography, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 80 years imprisonment, a $1,000,000 fine, lifetime supervised release and a $400 special assessment.
The case was investigated by agents of the Federal Bureau of Investigation, the Berks County Detectives, and the Berks County District Attorney's Office. It is being prosecuted by Assistant United States Attorney Michelle Morgan.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE Contact: PATTY HARTMAN
EASTERN DISTRICT, PENNSYLVANIA Media Contact
Suite 1250, 615 Chestnut Street 215-861-8525
Philadelphia, PA 19106COPIES OF NEWS MEMOS AND RELATED DOCUMENTS CAN ALSO BE FOUND AT HTTP://www.justice.gov/usao/pae
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Indiana County Woman Charged with Stealing Postal Service Money Orders, Stamps and CashRead the Press Release
PITTSBURGH - An Indiana County resident has been indicted by a federal grand jury in Pittsburgh on a charge of theft of government money, United States Attorney David J. Hickton announced today.
The one-count indictment named Jo E. Sandoval, 54, of Ernest, Pa., as the sole defendant.
According to the indictment, from Sept. 30, 2011 and continuing until Feb. 16, 2012, Sandoval embezzled and converted to her own use $2,107.15 in U.S. Postal Service money orders, stamps and cash, to which property she knew she was not entitled.
The law provides for a maximum total sentence of 10 years in prison, a fine of $500,000, 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.
Assistant United States Attorney Mary McKeen Houghton and Special Assistant United States Attorney Koleen Kirkwood are prosecuting this case on behalf of the United States.
The United States Postal Service, Office of Inspector General, conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Illinois Man Sentenced to Serve 72 Months in Prison for Conspiring to Distribute Prescription Drugs over the InternetRead the Press Release
Michael P. Jackson, 40, of Carmi, Ill., was sentenced yesterday in the U.S. District Court for the Southern District of Florida to serve 72 months in prison for selling the prescription drug known as Adderall, from 2009 to 2012, to a Florida woman who operated an illegal Internet-pharmacy business. Jackson also was sentenced to three years of supervised release.
According to the Dec. 6, 2012, indictment, defendant Jackson supplied his co-defendant Lina Rodriguez with pills of Adderall, which contains amphetamine, a Schedule II controlled substance. As defendant Jackson was aware and intended, co-defendant Rodriguez resold the Adderall pills through an Internet business she owned and operated in southern Florida.
“This prosecution aims to curb the sale of dangerous drugs to United States citizens,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division of the U.S. Department of Justice. “The controlled substance drugs allegedly sold by the defendants were not dispensed by U.S. licensed pharmacies, and were not prescribed by any physician. Along with FDA, the U.S. Postal Inspection Service, and our other law enforcement partners, we will continue to protect our citizens from unsafe and potentially harmful drugs.”
Jackson pled guilty to the lead count of the indictment on March 11, 2013, which charged him and Rodriguez with conspiring to possess with the intent to distribute Adderall. Pursuant to his plea agreement, Jackson agreed not to oppose a judgment against him in the amount of $18,862, as gross proceeds of the offense to which he pleaded guilty. Rodriguez was sentenced to 72 months’ imprisonment on April 22, 2013.
The case was investigated by the Miami Field Office of the U.S. Food & Drug Administration’s Office of Criminal Investigations; the Miami Division of the U.S. Postal Inspection Service; and the Sacramento Field Office of the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Kevin J. Larsen of the U.S. Attorney’s Office for the Southern District of Florida, and Perham Gorji, Trial Attorney for the U.S. Department of Justice’s Consumer Protection Branch.
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.
Houston Woman Convicted for Role in Rip-Off of Philadelphia Sheriff's OfficeRead the Press Release
PHILADELPHIA – A federal jury, today, returned guilty verdicts on all counts against Aarti Gupte, 31, of Houston, TX, for her involvement in scheme to defraud the Philadelphia Sheriff’s Office (“PSO”). The jury found Gupte guilty of conspiracy to commit wire fraud and wire fraud. The scheme stole funds from the PSO’s bank accounts.
Sheriff’s Sales of real estate generate millions of dollars annually. The sales require the PSO to write checks to different entities with regard to the properties sold. Co-conspirator Richard Bell, who was charged separately and pleaded guilty, was a PSO employee in the Accounting Department who took advantage of loose controls and wrote checks drawn on the PSO’s bank accounts made payable to
individuals and companies. Bell gave some of the checks to Robert Rogers, who has also pleaded guilty. Rogers recruited Aarti Gupte, who had two companies, to participate in the scheme. Bell wrote four checks, totaling $242,186.73, to The Processing Link and Yellow Rose Enterprises, LLC during the period from 2009 to 2010. Gupte deposited the checks into her company bank accounts, withdrew the proceeds and shared them with Rogers who shared with Bell. When approached by Federal Bureau of Investigation agents, the defendant admitted that she had participated in this scheme to defraud the PSO.U.S. District Court Judge Legrome D. Davis scheduled sentencing for September 16, 2013. Gupte faces a statutory maximum sentence of 60 years in prison.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Henderson Man Sentenced for Retaliating Against A Federal WitnessRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court today Senior Judge James C. Fox sentenced RON O’NEAL HARGROVE, 37, of Henderson, North Carolina, to 40 months imprisonment and 3 years of supervised release for Retaliating Against a Witness and Aiding and Abetting; and for Possession with the Intent to Distribute a Quantity of Cocaine.
On October 5, 2012, HARGROVE participated in an assault on a federal witness who previously testified against persons convicted of gun crimes before Senior Judge James C. Fox. HARGROVE and a co-defendant, who was tried and convicted by a jury in May, approached the federal witness at a convenience store in Henderson, NC, accused the witness of being a “snitch” and proceeded to beat the witness.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Henderson Police Department. Assistant United States Attorney, S. Katherine Burnette prosecuted the case.
Fort Yates Man Indicted for Sexual Abuse ChargesRead the Press Release
BISMARCK – First Assistant U.S. Attorney Lynn Jordheim announced that Donald Clark Luger, a/k/a Jody Luger, 62, Fort Yates, N.D., was indicted by a federal grand jury in May 2013 and is charged with aggravated sexual abuse of a child, abusive sexual contact and child abuse in Indian country.
Luger appeared in U.S. District Court in Bismarck on May 30, 2013, for an initial appearance and arraignment. Luger entered not guilty pleas to the charges. Luger is currently being detained by the U.S. Marshals Service pending trial on this matter. Trial is currently scheduled for July 23, 2013, at 9:30 a.m., in U.S. District Court in Bismarck.
The case is being investigated by the Federal Bureau of Investigation and Bureau of Indian Affairs - Standing Rock Agency.
Jordheim stressed that an indictment is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
Assistant U.S. Attorney Gary Delorme is prosecuting the case.
Former Wayne County Assistant County Executive Pleads Guilty to Honest Services FraudRead the Press Release
Former Wayne County Assistant County Executive Michael Demetrus Grundy, of Detroit, Michigan, pleaded guilty today to Conspiracy to Commit Honest Services Wire Fraud in connection with his position as Executive Director of HealthChoice of Michigan, United States Attorney Barbara L. McQuade announced today.
Joining McQuade in the announcement were Special Agent in Charge Robert D. Foley, III, Federal Bureau of Investigation and Special Agent in Charge Erick Martinez, Internal Revenue Service, Criminal Investigation.
According to court records, on October 19, 2011, Grundy caused the accountant of HealthChoice to wire transfer $400,000.00 to a company called Medtrix, falsely representing that the payment was pursuant to a contract between HealthChoice and Medtrix executed on March 1, 2011 for Medtrix to develop and implement an electronic medical records (“EMR”) system for HealthChoice medical providers. However, the contract was actually not executed until October of 2011, and it was not approved by the HealthChoice Board of Trustees. Further, Medtrix never created or obtained any EMR programming, and an EMR system that was developed by another company was already being offered to HealthChoice networks and medical providers.
Co-conspirator Keith Griffin pleaded guilty on May 10, 2012 to the wire fraud scheme. He admitted that Grundy used his position as Executive Director of HealthChoice to authorize fraudulent payments to Medtrix and Advertise Me (also owned by Griffin), and that Griffin kicked back substantial portions of those payments to Grundy. In his plea agreement, Grundy admits that he was receiving kickbacks of funds that were supposed to be used for the benefit of the participants of HealthChoice insurance programs.
Grundy faces a maximum of twenty years in prison, a fine of up to $250,000, and forfeiture of the unlawful payments he received.
United States Attorney McQuade said, "The citizens of Wayne County deserve honest services from their public officials. It is particularly offensive when corruption comes from officials entrusted to promote health and welfare. We will continue to prosecute public officials who enrich themselves instead of serve the people.”
FBI Special Agent in Charge Robert D. Foley III said, "We will aggressively pursue public officials like Michael Grundy who are charged with promoting the health and welfare of our citizens, but who instead corruptly use their positions of power for self-gain."
"Grundy abused his powers by utilizing his positions to discreetly conduct illegal activities and receive kickbacks," said IRS-CI Special Agent in Charge Erick Martinez. "IRS-CI is committed to following the money trail to ensure that public officials who use their office to line their own pockets are brought to justice and deprived of their ill-gotten gains."
The case was investigated by agents of the FBI and IRS. This case is being prosecuted by Assistant United States Attorneys Elizabeth A. Stafford, Gjon Juncaj and Chantale Fiebig.
Former New Jersey Return Preparer Sentenced for Tax FraudRead the Press Release
Ashraf Hassan-Gouda, a former resident of Mays Landing, N.J., was sentenced today in U.S. District Court for the District of New Jersey to 541 days in prison, the Justice Department and the Internal Revenue Service (IRS) announced today. The approximately 18 month sentence is for time served. Previously, Hassan-Gouda had pleaded guilty to willfully assisting in the preparation of a false federal individual income tax return for a client.
According to court documents, in 2003, Hassan-Gouda was the owner of Tax World, a tax preparation business located in Atlantic City, N.J. He prepared the false tax return for the client at his business. Hassan-Gouda was indicted in 2007 and fled to Egypt. In 2012, Hassan-Gouda was extradited to the United States from Germany.
The case was investigated by IRS-Criminal Investigation, and prosecuted by Tax Division Trial Attorneys Yael Epstein, Thomas Voracek and Shawn Noud.Former Maverick County Commissioner Rodolfo Bainet Heredia Enters Guilty Plea in Connection with A Bribery, Kickback and Bid-Rigging SchemeRead the Press Release
In Del Rio this afternoon, former Maverick County Precinct Two Commissioner Rodolfo Bainet Heredia, age 54, of Eagle Pass, Texas, pleaded guilty to federal charges in connection with an alleged bribery, kickback and bid-rigging scheme, announced United States Attorney Robert Pitman and FBI Special Agent in Charge Armando Fernandez.
Appearing before United States District Judge Alia Moses, Heredia pleaded guilty to one count of receiving a bribe by an agent of an organization receiving federal funds. By pleading guilty, Heredia admitted that in 2010 and 2011, he manipulated the bidding process to guarantee that contractors he chose would be awarded Maverick County construction contracts. Furthermore, Heredia admitted that he instructed the private contractors to submit inflated bids to Maverick County in order to ensure the availability of sufficient funds to perform the construction work, make a profit, and also to pay him bribes. According to court records, Heredia collected thousands of dollars in bribes while Maverick County suffered losses estimated between $200,000 and $400,000 as a result of Heredia’s scheme.
Heredia, who has remained in federal custody since his arrest last October, faces up to ten years in federal prison and a maximum $250,000 fine. In addition, Heredia has agreed to pay any and all restitution to be determined by the Court resulting from his illegal conduct as Maverick County Commissioner in 2010 and 2011 as well as any and all federal taxes owed to the United States for calendar years 2010, 2011, and 2012. Sentencing is scheduled for 9:00 am on November 25, 2013.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741.
Assistant United States Attorney Michael Galdo is prosecuting this case on behalf of the Government.
Former Computer Company Ceo Fined $5 Million and Sentenced to Two Years in Prison for Consipracy, Securities Fraud, Money LaunderingRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Michael E. Peppel, 46, former Chief Executive Officer of MCSi, Inc., a computer sales company formerly headquartered in Dayton, was sentenced in U.S. District Court here today to two years in prison followed by three years of court supervision for engaging in a deliberate scheme to defraud millions of dollars from company investors by improperly reporting company revenues. He was also fined $5 million.
Carter M. Stewart, United States Attorney for the Southern District of Ohio; Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Division (FBI); Kathy Enstrom, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS) and Christopher T. White, Assistant Inspector in Charge, Cincinnati Field Office, U.S. Postal Inspection Service announced the sentence handed down today by Senior U.S. District Judge Sandra S. Beckwith.
Peppel pleaded guilty in August 2010 to one count each of conspiracy, securities fraud, and money laundering.
Peppel falsified company accounting records and financial statements to mislead investors about the company’s dire financial situation. “Through his calculated conduct, Mr. Peppel undermined the core principle upon which American equity markets and investors rely – the need for complete, accurate and truthful information,” Assistant U.S. Attorneys Dwight Keller and Brent Tabacchi wrote in a filing with the court prior to sentencing.
Peppel was ordered to forfeit three pieces of real property, the contents of bank and investment accounts, a$20,000 Italian oil painting and a $9,000 Italian bronze sculpture that represent the proceeds traceable to the crimes.
MCSi called itself North America’s premier reseller of advanced integrated computer technology and visual communications products for business, government and educational institutions. MCSi was formerly listed on the NASDAQ stock market, until it was delisted in April 2003. In 2001, the firm’s annual sales exceeded $810 million, it maintained offices at 160 locations, had 50,000 clients and had over 1,300 employees. In 2003 it filed for bankruptcy.
Stewart commended the efforts of the agents and investigators of the IRS, U.S. Postal Inspection Service and FBI for their in-depth investigation into this matter, and Assistant U.S. Attorneys Dwight Keller and Brent Tabacchi, who represented the United States in the case.
Former Atlanta Public Schools Chief Information Officer Indicted for Accepting KickbacksRead the Press Release
Accused of Awarding Computer Contract to Bidder in Exchange for Bribes
ATLANTA – Jerome Oberlton and Mahendra Patel have been arraigned for allegedly receiving kickback payments in exchange for Oberlton using his influence as Chief Information Officer for Atlanta Public Schools to award a $780,000 computer project.
“As the Chief Information Officer for APS, Oberlton was entrusted with overseeing a program designed to centralize student data,” said United States Attorney Yates. “Rather than ensuring that venders were selected based upon what was best for the school system the defendants are charged with using Oberlton’s public position to line their private pockets.”
“Abusing one’s position of public trust for personal gain should not and will not be tolerated,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “The FBI, in designating public corruption matters as its number one criminal programs priority, asks that anyone with information regarding such activity to contact their nearest FBI field office.”
“What started as a friendship between Mr. Patel and Mr. Oberlton resulted in them lining their pockets with funds obtained illegally through kickbacks,” stated Veronica Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. We are committed to ‘following the money trail’ to ensure that those who engage in these illegal activities are vigorously investigated and brought to justice.”
According to United States Attorney Yates, the indictment, and information presented in court: Jerome Oberlton was the Chief Information Officer (CIO) for Atlanta Public Schools (APS) between June 2004 and August 2007 and had overall management responsibility for APS’ information technology program. In January 2007, APS issued a request for proposal for a data warehousing project for the school system. The project’s intent was to centralize information relating to APS operations, including student information, by storing it digitally in a secure, easily-accessible manner.
The indictment charges that from the start of the project in January 2007, Oberlton influenced the request for proposal process and ultimately caused the winning bidder to be selected in exchange for kickbacks paid to Oberlton and Patel, who was an acquaintance of Oberlton. In order to hide the bribes, Oberlton created Global Technology Partners and later Global Technology Services and funneled the bribe payments through these shell companies. Oberlton was able to conceal his ownership of Global Technology Partners and Global Technology Services from APS. In contrast, the kickbacks to Patel were disguised as sales commissions for non-existent consulting work. The computer company ultimately paid approximately $60,000 in bribes to Oberlton and Patel for nearly six months and in return the IT company received almost $800,000 in APS project work.
Oberlton, 47, of Dallas, Texas, and Patel, 45, of Kennesaw, Ga., were indicted on May 28, 2013. The defendants are charged with conspiracy to defraud APS, which carries a maximum term of five years in prison and a fine of $250,000. They also are charged with conspiracy under color of official right, a money laundering conspiracy, mail fraud, and wire fraud, which each carry a maximum term of 20 years in prison and a fine of $250,000. Oberlton additionally is charged with bribery and money laundering, which each carry a statutory maximum penalty of 10 years in prison and a $250,000 fine. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
The defendants made their initial appearances on June 4, 2013, before United States Magistrate Judge Russell Vineyard and were released on a $25,000 bond.
The public is reminded that criminal charges are only allegations. A defendant is presumed innocent of the charges and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.
These cases are being investigated by Special Agents of the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.
Assistant United States Attorneys Kurt R. Erskine and Jill E. Steinberg are prosecuting 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.
Forest Man Sentenced for Drug ConspiracyRead the Press Release
Jackson, Miss - Willie Carlos Johnson a/k/a Carlos, 25, of Forest, Mississippi, was sentenced on June 3, 2013 by U. S. District Judge Carlton W. Reeves to 120 months in federal prison followed by five years of supervised release for conspiracy to possess with intent to distribute more than 50 grams of methamphetamine in the Brusha Community of Scott County. Johnson was also ordered to pay restitution in the amount of $600.00 to the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Johnson was indicted following an extensive investigation, dubbed “Operation Brusha” targeting illegal narcotics distribution in Scott County, Mississippi. He pled guilty on March 4, 2013.
This case was investigated by the Bureau of Alcohol, Tobacco Firearms and Explosives, Homeland Security Investigations and Mississippi Bureau of Narcotics with assistance from the Forest Police Department, Scott County Sheriff’s Department, Mississippi Highway Patrol, and Mississippi Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Erin O. Chalk.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Fish Processing Company, "Omega Protein, Inc." Sentenced for Environmental CrimesRead the Press Release
NORFOLK, Va. – Omega Protein, Incorporated (“Omega”) headquartered in Houston, Texas, with operations in Reedsville, Virginia, was sentenced today in United States District Court in Norfolk, Va. for two violations of the Clean Water Act stemming from its activities in the menhaden fishing industry. Omega was sentenced to 3 years of probation and financial penalties totaling $7.5 million.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Otis E. Harris, Jr., Special Agent in Charge, Coast Guard Investigative Service, Chesapeake Region and David G. McLeod, Jr., Special Agent in Charge of the Environmental Protection Agency’s (EPA) Criminal Investigation Division, Philadelphia Area Office made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
“Omega Protein’s conduct both harmed our environment and violated federal law,” said United States Attorney Neil H. MacBride. “Today’s sentence, with its significant financial penalty, reflects the seriousness of these charges and our commitment to protecting the waterways of the Eastern District of Virginia.”
“The defendant put wildlife and aquatic life at risk in our nation's largest estuary by illegally discharging non-permitted fish processing waste and oily wastewater directly into the Chesapeake Bay and the Atlantic Ocean,” said Special Agent McLeod, who is in charge of EPA’s criminal enforcement program for the Middle Atlantic States. “Today's sentence should serve as a strong deterrent and further demonstrates our resolve to vigorously prosecute those who despoil our natural resources by cutting corners and handling waste illegally. We will continue to collaborate with the Coast Guard and other federal, state and local partners to investigate and prosecute those who violate our nation's environmental laws.”
“As guardians of the maritime environment, the Coast Guard is charged with preserving our nation’s natural resources for future generations,” said Rear Admiral Steven Ratti, District Commander for the Fifth Coast Guard District. “Our waterways are one of our nation’s greatest resources, and this case illustrates our commitment to work with our federal, state and local partners to ensure those who commit these types of crimes are held accountable.”
Omega Protein, Inc., is a public company with stock traded on the New York Stock Exchange. According to its website, Omega is one of the world’s leading producers of fish oil and the United States’ leading manufacturer of fish meal. Omega’s products derive from menhaden, a small, oily, Omega-3 rich fish that live off the east coast of the United States.
According to court documents, from May 2008 through September 2010, Omega Protein violated the Clean Water Act through the operation of its fish processing facility in Reedsville, Va. and through the operation of its fishing fleet, also based in Reedsville. Specifically, Omega’s processing facility generated a fish waste known as “Bail” water, the court records indicate. This Bail water consisted of water mixed with fish waste and was permitted to be discharged at a point beyond three nautical miles from the shore, provided it was not mixed with any other chemicals or wastes. According to the statement of facts filed with the Court, Omega combined the Bail water with pollutants generated by the processing operations and a caustic substance. This material was then discharged into the Chesapeake Bay at a point less than three nautical miles from the shore.
The court records further reveal that from April 2009 through September 2010, Omega’s fishing fleet was operated in violation of the Clean Water Act. Omega’s fishing fleet was configured in such a way that permitted the overboard discharge of oily wastewater directly into the sea. The vessels contained pumps in the bilge that were connected directly to the skin of the ship so that the oily waste from the bilge could be pumped overboard. The court records indicate it was the common practice for the Omega vessels to discharge oily wastewater in this manner while on their voyages.This case was investigated by agents from the Coast Guard Investigative Service and the Environmental Protection Agency Criminal Investigation Division. Assistant United States Attorneys Joseph L. Kosky and Olivia Norman, and Special Assistant United States Attorney David Lastra 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.usdoj.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 http://pacer.uspci.uscourts.gov.Federal Grand Jury in Fort Wayne Returns IndictmentRead the Press Release
Fort Wayne, INCThe United States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returned the following Indictment on July 25, 2012:
Ron Luthe, 45, of Fort Wayne, Indiana, is charged in a single count Indictment with being a felon in possession of a firearm on or about May 8, 2012. This Indictment also seeks the forfeiture of a firearm and a magazine. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Allen County Sheriff’s Department Warrants and Fugitive Division. This case has been assigned to and will be prosecuted by Assistant United States Attorney Tina L. Nommay.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
##END##Edmond Woman Convicted of Health Care Fraud Receives Prison Term and $1.89 Million FineRead the Press Release
Oklahoma City, Oklahoma – Yesterday, FARIDEH HEIDARPOUR, 51, of Edmond, was sentenced by Chief United States District Judge Vicki Miles-LaGrange to serve twelve months and one day in federal prison for her role in committing a health care fraud scheme, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. In addition, Judge Miles-LaGrange ordered that Ms. Heidarpour serve three years of supervised release following her imprisonment, tender a check to the court in the amount of $1 million to reimburse the United States, and pay a $1.89 million fine and restitution of $120,689.84
Ms. Heidarpour pled guilty in August 2012. The evidence showed that from 2005 through 2009, she was the manager, part-owner, and medical biller for the Advanced Clinics located in Oklahoma City, Tulsa, Dallas, and Oakland, California. The majority of patients of the Advanced Clinics were injured United States Postal Workers receiving medical benefits under the U.S. Department of Labor, Office of Workers' Compensation Program (DOL-OWCP). These patients received medical evaluations and physical and occupational therapy for the purpose of obtaining schedule awards from DOL-OWCP for their injury disabilities. Ms Heidarpour fraudulently billed DOL-OWCP for services not rendered, double billing, and manipulated billing codes to obtain higher reimbursements. From October 2006 through December 2009, Ms. Heidarpour personally received over $4.4 million from the Advanced Clinics.
This sentence is the result of an investigation conducted by the United States Postal Service Office of Inspector General and the U.S. Department of Labor Office of Inspector General. The case was prosecuted by Assistant U.S. Attorneys Vicki Z. Behenna and Kerry A. Kelly.
Reference is made to public filings for further information.
Eagle Butte Woman Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota woman convicted of two counts of Assault by Striking, Beating and Wounding was sentenced on May 30, 2013 by U.S. Magistrate Judge Mark A. Moreno.
Rae Jean Araujo Cota, a/k/a Rae Jean Slides Off, age 36, was sentenced to 131 days in custody, 12 months of probation, and a $20 special assessment to the Federal Crime Victims Fund.
Araujo Cota was indicted by a federal grand jury on January 16, 2013 for Assault with a Dangerous Weapon. She pled guilty to two counts of Assault by Striking, Beating and Wounding on March 22, 2013. These convictions are the result of two different assaults of the same victim that occurred in Eagle Butte in November and December of 2012.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Division. The case was prosecuted by Assistant U.S. Attorney Mikal Hanson.
Araujo Cota was remanded to the custody of the U.S. Marshals Service to begin serving her sentence.
Duquesne Man Sentenced for Role in Counterfeit Credit Card SchemeRead the Press Release
PITTSBURGH - A resident of Allegheny County has been sentenced in federal court to five years probation with a condition of six months home detention, and restitution in the amount of $33,988.33 on his conviction of conspiracy to use counterfeit credit cards, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill imposed the sentence on Devin Alexander Murphy, 24, of Duquesne, Pa.
According to the information presented to the court, between June, 2010 through June, 2011, Murphy, along with his co-defendants Rayvon Oscar Kyles and Janie Beys used counterfeit credit cards at Walmart stores in Western Pennsylvania to purchase merchandise.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Inspectors from the United States Postal Inspection Service along with agents from the United States Secret Service who, as part of the Western Pennsylvania Financial Crimes Task Force (WPFCTF), conducted the investigation that led to the successful prosecution of Murphy. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police, conducted the investigation that led to the prosecution of Murphy.
Drug Dealer SentencedRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Adrian Leary, age 33, of Eatonville, Florida, was sentenced on June 3, 2013 to 105 months in prison to be followed by four (4) years of supervised release after pleading guilty to Possession with Intent to Distribute Cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(B)(ii)(II) and Title 18, United States Code, Section 2. The Honorable Hugh Lawson, United States District Judge, sentenced Mr. Leary in Valdosta, Georgia.
In entering of his plea of guilty on February 22, 2013, Mr. Leary admitted that on August 18, 2012, in an effort to evade law enforcement while driving southbound on Interstate 75, he drove at speeds exceeding 100 miles per hour. Mr. Leary admitted damaging two vehicles during the pursuit after exiting Interstate 75. Mr. Leary was apprehended shortly after his attempt to flee the second crash site. A search of the vehicle revealed 525.7 grams of cocaine which were seized and tested by the Drug Enforcement Administration.
“Mr. Leary’s actions both as he distributed cocaine and as he recklessly fled from the Sheriff’s deputies, put the public in danger. He won’t be a threat to public safety while he is in federal prison,” said U.S. Attorney Michael Moore.
The case was investigated by the Drug Enforcement Administration and the Lowndes County Sheriff’s Office. Assistant United States Attorney Peter Leary, who is not related to the defendant, handled the prosecution for the Government.
Inquiries regarding the case should be directed to Sue McKinney, Public Affairs Specialist, United States Attorney’s Office at (478) 621-2602.
Doctor Arrested and Charged with Selling Oxycodone Prescriptions for Cash, Wine and Designer HandbagsRead the Press Release
SAN DIEGO – Physician William Joseph Watson was arrested and charged today with selling prescriptions for thousands of Oxycodone pills and other highly addictive painkillers without any legitimate medical purpose. Watson allegedly sold the prescriptions to addicts, who then used them recreationally, sold them on the street, or traded them for heroin.
According to a complaint filed in federal court today, Watson accepted thousands of dollars in cash or luxury goods, such as designer handbags, jewelry and fine wines, in exchange for the Oxycodone prescriptions.
“Prescription drug abuse and overdoses have reached alarming levels,” said U.S. Attorney Laura Duffy. “We are going after those who traffick pharmaceuticals with the same passion we have shown for dismantling the ruthless cartels that deal in cocaine, heroin and methamphetamine.”
“Knowing that prescription drug abuse is a national epidemic, DEA takes the illegal diversion of prescription drugs very seriously,” says DEA San Diego Special Agent in Charge William Sherman.
Oxycodone has become one of the preferred opioid drugs of choice by pharmaceutical drug addicts, the tablets can be crushed, snorted, injected or smoked for a quick, intense high. To prevent abuse, one manufacturer reformulated the 80 milligram pill in 2010, creating a version that could no longer be or smoked. Other versions of the pill, however—including the 30 milligram pill—can still be abused by addicts.
According to the complaint, Watson’s prescription-writing habits raised the suspicions of Drug Enforcement Administration agents, who monitor the type and quantity of medications prescribed through a state tracking system. The complaint alleges that Watson wrote a high volume of prescriptions for Oxycodone, Hydrocodone and Xanax, three of the most highly-abused medications on the market. Most of his patients were young and less likely to need large quantities of these medications. And, Watson routinely prescribed 80 milligram tablets of Oxycodone until they were reformulated. Then he switched to the 30 milligram version.
The complaint alleges that during medical appointments with confidential informants and an undercover DEA agent, Watson demonstrated that he would write a prescription for Oxycodone even though there was no legitimate medical purpose for doing so.
During one medical visit on June 25, 2012 that is described in the complaint, a confidential informant introduced an undercover DEA agent as his girlfriend, saying she was “hurting” and needed some treatment. Watson introduced himself to the so-called girlfriend and said he heard that she needed to come in for some treatment, winking at her while he said the word “treatment,” according to the complaint. During the appointment, Watson never asked to review the DEA agent’s medical records, nor did he inquire about any tests, x-rays or other diagnoses. To the contrary, Watson simply wrote her a prescription for 120 Oxycodone pills.
Under Title 21, United States Code, Section 841, and Title 21, United States Code of Federal Regulations, Section 1306.04(a), a medical doctor may not prescribe a controlled substance unless there is a legitimate medical purpose.
DEFENDANT CRIMINAL CASE NO. 13mj2172 William Joseph Watson Age: 58 Del Mar, CA SUMMARY OF CHARGESCounts 1-21 Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C) – Dispensing
AGENCIES
Controlled Substances Without a Legitimate Medical Purpose. Maximum
penalties: 20 years of custody, $1 million fine, life-term of supervised release.U.S. Drug Enforcement Administration
Customer Embezzles $33,072.68 from the United States Postal ServiceRead the Press Release
Richard S. Hartunian, United States Attorney for the Northern District of New York, announced that JOHN GIBSON, III, age 37, of Oswego, N.Y., pled guilty today to the felony offense of Theft of Government Money, before the Hon. Glenn T. Suddaby in the United States District Court in Syracuse, New York. Sentencing for GIBSON is scheduled for October 9, 2013. As a result of the conviction, GIBSON is facing a term of imprisonment of up to ten years, supervised release of up to three years, a fine of up to $250,000, and a special assessment of $100.
GIBSON admitted that he purchased 91 postal money orders with checks drawn on closed checking accounts in the total amount of $33,072.68, in violation of Title 18, United States Code, Section 641.
GIBSON’s prosecution is the result of a joint investigation by U.S. Postal Inspection Service and the United States Postal Service Office of Inspector General. The investigation began in June 2012.
This prosecution was handled in the United States Attorney’s Office by Assistant U.S. Attorney Tamara B. Thomson.
Couple Pleads Guilty in Computer Hacking CaseRead the Press Release
PITTSBURGH - A Mt. Washington couple pleaded guilty in federal court to charges of recklessly damaging a computer and password trafficking, United States Attorney David J. Hickton announced today.
Jonathan Cunningham, 29, and Alyson Cunningham, 25, both of Pittsburgh, Pa., pleaded guilty to two counts of the five-count superseding indictment before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on Nov. 28, 2011, Alyson Cunningham had been fired from a law firm located in Pittsburgh, referred to as "VG," In retaliation for the firing, Matthew West, acting at Alyson and Jonathan Cunningham's encouragement, logged into VG servers using an internal company password provided to him by Alyson Cunningham over Facebook. West utilized a VPN proxy server located in Germany to use the password to access VG servers, so as to shield his identity. Once West accessed the server, he installed software on the server which could be used to capture passwords of anyone on the firm’s network.
On Nov. 29, 2011, West sent a partner at VG law firm an email from the account [email protected] that stated that the firm’s web servers had been compromised, and that their backup files had been copied and deleted. This email, which was used to notify the victim company of the hack caused by the usage of the illegally trafficked password, electronically traveled from West's computer in Pennsylvania, to Google's servers in California, before arriving back at VG's server in Pennsylvania. The email further stated that “we are not interested in ruining your business, but routinely checking that business is fair and just. Our motive is to solely capture and record 100% of Pittsburgh business records and operations and protect it or use it against you as we could if Anonymous had a reason and needed to.” Anonymous is a loosely connected network of computer hacker/activists who are known to intrude upon computer networks for political purposes.
According to the victim company, neither Alyson Cunningham, Jonathan Cunningham, or Matthew West had authority to access their computer server, nor did they have authority to place malware onto VG's servers.
Internet chats indicate that Jonathan Cunningham was actively communicating with West during the hack into VG's servers, providing instruction and suggestions, including suggesting the use of specific VPN servers. When IM chatting with West on the night of the hack, Jonathan Cunningham and Alyson Cunningham alternated in their use of Alyson’s Skype account when communicating with West about the hack.
Judge Cercone scheduled sentencing for Oct. 15, 2013, 2013 at 10:00 and 10:30 a.m. The law provides for a total sentence of two years in prison, a fine of $200,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.
Pending sentencing, the court continued the Cunningham's on bond.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Jonathan and Alyson Cunningham.