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12 July 2013
Brothers-in-Law, Who Used Craigslist to Sell Tickets to Sporting Events, Receive Lengthy Federal Prison Sentences on Wire Fraud ConvictionsRead the Press Release
FORT WORTH, Texas — Two men, who pleaded guilty earlier this year to wire fraud charges stemming from their use of Craigslist to obtain victims’ credit card information, have been sentenced by U.S. District Judge John McBryde. James Lee Williams, II, 40, of Dallas, was sentenced on April 26, 2013, to 120 months in federal prison and ordered to pay more than $77,000 in restitution. His brother-in law and co-defendant Anthony Troy Johnson, 44, of Karnack, Texas, was sentenced on July 5, 2013, to 48 months in federal prison and ordered to pay more than $66,000 in restitution. Williams has been in custody since his arrest; Johnson was ordered to surrender to the Bureau of Prisons by July 26, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Williams and Johnson admitted running a scheme in which they advertised on Craigslist tickets for sale to events such as football games or Texas Rangers baseball games. When a customer called to buy tickets, they obtained the credit card information and informed the customer that their tickets would be mailed or could be picked up at the event. Instead of purchasing tickets to the designated event, however, Williams and Johnson used the victims’ credit card information to purchase airline tickets, tickets to other sporting events, concerts and attractions such as Six Flags Over Texas amusement park, and then they sold the fraudulently obtained tickets to other consumers.
Williams was arrested by officers with the Arlington Police Department in August 2012 after a state search warrant was executed in his motel room in Arlington. Among some of the items seized were documents containing names and numbers consistent with personal identifying information and credit card numbers, written ledgers for various sporting/entertainment events, cell phones and tickets. Some of the paperwork had been stuffed into the toilet, clogging it and causing it to overflow, and a laptop computer had been thrown out of the window.
The investigation was conducted by the Arlington Police Department and the U.S. Postal Inspection Service. Assistant U.S. Attorney Chris Wolfe prosecuted.
Bonesteel Woman Charged with Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bonesteel, South Dakota, woman has been indicted by a federal grand jury for Child Abuse.
Maria Janis, age 35, was indicted by a federal grand jury on April 12, 2013. She appeared before U.S. Magistrate Judge Mark A. Moreno on July 11, 2013, and pled not guilty to the indictment.
The maximum penalty upon conviction is up to 10 years in custody, a $250,000 fine, or both; 3 years of supervised release; and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge is merely an accusation and Janis is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Janis was released to a third party custodian pending trial. A trial date has been set for August 13, 2013.
###Blasdell Man Sentenced for Possession of Child PornographyRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Jeremy Marsillo, 30, of Blasdell, N.Y., who was convicted of possession of child pornography, was sentenced to 24 months in prison and five years of supervised release by Chief U.S. District Court Judge William M. Skretny.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that on May 19, 2012, the Hamburg Police Department received a report that the defendant left behind a SIM card at a residence he had been staying at. The report also indicated that the SIM card contained images of child pornography. In addition to the SIM card, Marsillo also had an electronic tablet also containing child pornography. A forensic analysis of the SIM card and the tablet uncovered approximately 100 images of child pornography stored on the SIM card, and an additional 174 images of child pornography stored on the tablet. The defendant obtained these images over the internet. Certain images contained depictions of violence against children.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The sentencing is the culmination of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero, Special Agent-In-Charge; and the Town of Hamburg Police Department, under the direction of Chief Michael Williams.
Albuquerque Man Sentenced to 188 Months in Federal Prison for Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Antonio Gallegos, 48, of Albuquerque, N.M. was sentenced this afternoon to 188 months in federal prison followed by a lifetime of supervised release for his conviction for distribution and attempted distribution of child pornography. Gallegos will be required to register as a sex offender after he completes his prison sentence. Gallegos also was ordered to pay $500 in restitution to the victim whose image was at issue in his crime of conviction.
Gallegos’ sentence was announced by U.S. Attorney Kenneth J. Gonzales, Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI, and Chief Robert W. Shilling of the New Mexico State Police (NMSP).
Gallegos was arrested in April 2012, on a criminal complaint charging him with distribution, receipt and possession of child pornography, and has been in federal custody since that time. In May 2012, Gallegos was indicted and charged with one count of distribution and attempted distribution of child pornography; three counts of receipt of child pornography; and one count of possession of child pornography. In July 2012, Gallegos entered a guilty plea to Count 1 of the Indictment charging him with distribution and attempted distribution of child pornography.
In entering his guilty plea, Gallegos admitted that from Aug. 2011 through March 2012, he knowingly distributed and attempted to distribute child pornography through a peer-to-peer filing sharing program. Gallegos acknowledged that investigators with the New Mexico Internet Crimes Against Children (ICAC) Task Force executed a search warrant at his residence in March 2012, and seized computers and computer-related media containing child pornography. The search warrant was based on a NMSP investigation that began in Sept. 2011, and monitored Internet Protocol (IP) addresses that appeared to be used to distribute, receive and possess child pornography. IP addresses that were subscribed to Gallegos at his residence on the west side of Albuquerque were amongst the IP addresses identified by the investigation.
Gallegos also acknowledged that a forensic examination of his computer and computer-related media revealed thousands of images and videos of child pornography. The National Center for Missing and Exploited Children determined that the child pornography images and videos found on Gallegos’ computers and computer-related media include 20 images of 15 children who have been identified as child pornography victims and have been rescued.The case against Gallegos was investigated by the FBI, the NMSP and the New Mexico Regional Computer Forensic Laboratory, and was prosecuted by Assistant U.S. Attorney Charlyn E. Rees. The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
11 July 2013
Wounded Knee Man Charged with Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that Berdell Christopher Shot, age 29, of Wounded Knee, South Dakota, appeared before U.S. District Judge Roberto A. Lange on July 10, 2013, and pled guilty to Sexual Abuse of a Minor.
The maximum penalty upon conviction is 15 years in custody, a $250,000 fine, or both; life of supervised release; and $100 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on or about November 19, 2012, when Shot had sexual contact with the victim.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Tim Maher.
A presentence investigation was ordered and a sentencing date was set for September 30, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
# # #Wetumpka Woman Pleads Guilty to Health Care FraudRead the Press Release
Montgomery, Alabama - LaShawn Denise Anthony, 42, of Wetumpka, entered a guilty plea today to one count of health care fraud, admitting that she and her business had falsely billed Alabama Medicaid, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. Anthony had been scheduled to go to trial on July 22, 2013, on the indictment returned against her in December 2012.
The indictment filed against Anthony charged her with committing health care fraud through her business, Youth Enhancement and Family Services, Inc. Youth Enhancement and Family Services, Inc., was a non-profit corporation which provided psychotherapy services to students and families as part of the Medicaid Program in Alabama. The specific program was designed to provide counseling services to children with behavioral problems as well as give their families living skills training.
Specifically, Anthony admitted that she committed health care fraud by falsely billing claims as if a psychologist with a doctoral degree had actually provided services, when, in fact, the therapist who performed the service had only a master’s degree. Thus, Anthony submitted false claims and made false statements to the Medicaid Program which allowed her to make more money from Medicaid than she was legally owed.
“This case demonstrates the commitment of this office to fighting health care fraud in all its forms,” stated U.S. Attorney Beck. “This office will continue to investigate and prosecute health care fraud aggressively and thoroughly. I want to especially thank Attorney General Luther Strange and the agents in his Medicaid Fraud Control Division as well as the Program Integrity Division of Alabama Medicaid for their efforts in discovering this scheme. We expect this type of joint investigation to become a model of law enforcement cooperation among federal and state authorities.”
Attorney General Strange praised the cooperative efforts between his Medicaid Fraud Control Unit and the U.S. Attorney’s office in bringing Ms. Anthony to justice. “My office will continue to work collaboratively with the U.S. Attorney’s office in order to protect scarce public resources,” said Strange. “I look forward to future partnerships between the two offices to ensure any person who attempts to steal the taxpayers’ money will be held to account.”
Based on her guilty plea, Anthony faces a maximum punishment of 5 years in prison and a $250,000.00 fine, along with restitution to Alabama Medicaid in excess of $190,000.00. Sentencing before U.S. District Judge W. Keith Watkins has yet to be scheduled. Assistant U.S. Attorneys Bob Anderson and Denise Simpson are prosecuting the case.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617West Virginia Doctor Charged with over Prescribing PainkillersRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
Doctor allegedly over prescribed narcotics to patients who later overdosed
CLARKSBURG, WEST VIRGINIA - A Harrison County, West Virginia doctor has been charged with supplying excessive amounts of prescription pain medication to individuals for non- legitimate medical reasons, actions that are believed to be linked to several drug overdose deaths.
United States Attorney William J. Ihlenfeld, II announced that DR. EDITA MILAN was arrested today for the felony offense of “Conspiracy to Distribute Schedule II, III, & IV Controlled Substances.” MILAN is alleged to have supplied large quantities of painkillers to her customers for no legitimate medical purpose and outside the usual course of professional practice. Her motive for the distribution of the drugs is believed to be financial in nature.
MILAN and her practice had been under investigation by the Greater Harrison Drug Task Force for several months when in June of 2013, a neighbor of MILAN in Fairmont, West Virginia was found dead in his home. The neighbor also happened to be a patient of MILAN’S, and it is alleged in the criminal complaint that he had been prescribed large quantities of painkillers by MILAN prior to his death. The complaint further states that MILAN misrepresented the cause of the death to the county medical examiner, and that she conspired to throw away many of the deceased’s pill bottles after his death in order to conceal her connection to the decedent.
Although the deceased subject had not been in to see MILAN for three months prior to his death, the complaint alleges that MILAN continued to prescribe oxycodone and morphine to him. This method of prescribing is against legitimate medical practice since a patient is supposed to physically visit a doctor’s office in order for prescriptions of this type to be filled.
According to the complaint, a review of State Health Department records was conducted by agents and it showed that between 2010 and 2011 three other patients of MILAN died as a result of overdoses from pharmaceuticals that she had prescribed.
MILAN obtained authorization in 2009 to open a narcotic treatment program, sometimes referred to as a “pain clinic”, and she was permitted to treat up to 30 patients with narcotics. The investigation indicates that MILAN was treating more than twice as many patients with narcotics than she had the authority to treat. MILAN is also believed to have prescribed pills to individuals “off the books”, or to people who were never actually her patients. A review of State Board of Pharmacy data revealed that MILAN had at least 37 patients who are known by law enforcement to have involvement in the illegal diversion of prescription pills.
“As this case demonstrates, federal, state and local law enforcement continue to stand united to tackle the drug problem in North Central West Virginia and throughout the state,” said U.S. Attorney Ihlenfeld. “Together, we are making a positive difference as we aggressively pursue doctors who seek to hide behind a medical license in order to traffic in highly addictive and sometimes deadly substances.”
The investigation initially focused upon an employee of MILAN’S practice who was selling painkillers in the parking lot of the office to an undercover police officer. That employee was charged in federal court and convicted, and then was replaced at the medical practice by her sister, who had a prior felony drug conviction herself. Agents then received information from a Harrison County pharmacist that caused the focus of the case to turn to the unusually large number of prescriptions being written by MILAN to her employees and to their families. Surveillance conducted by task force officers confirmed these allegations.
Federal search warrants were served at MILAN’s home in Fairmont and her office in Bridgeport late last month. Warrants were also served at the home of MILAN’s deceased patient and upon the home of one of MILAN’s employees. On the day that the warrants were served MILAN agreed to voluntarily surrender her DEA registration number and as such she can no longer prescribe controlled substances.
As a result of the execution of the search warrant at MILAN’s office, hundreds of patient files were seized by investigators. Patients who are seeking copies of their medical files should make a request in writing by regular mail to the United States Attorney’s Office, P.O. Box 591, Wheeling, West Virginia 26003. Patients should include their full name, date of birth, address, and phone number when making the request, and they will be contacted in order to arrange to obtain their records. Patients will need to provide photo identification in order to receive their records.
The case is being prosecuted by Assistant United States Attorney John C. Parr. The case was investigated by the Greater Harrison County Drug and Violent Crimes Task Force, which is comprised of officers and agents from the Bridgeport Police Department, the Clarksburg Police Department, the Drug Enforcement Administration, and the West Virginia State Police, along with support from the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals
Service.Ventura County-based Amgen Inc. Pays over $15 Million to Resolve Allegations That It Illegally Marketed Cancer Drug with KickbacksRead the Press Release
LOS ANGELES – Biopharmaceutical company Amgen Inc. today paid the United States more than $15 million to resolve allegations that the Ventura County company provided illegal financial incentives to physicians and physician groups to induce them to prescribe the cancer drug Xgeva.
Amgen, which is headquartered in Thousand Oaks, paid the money today pursuant to a settlement agreement with the United States to resolve allegations that it violated the Medicare Anti-Kickback Statute and the federal False Claims Act. The Medicare Anti-Kickback Statute prohibits anyone from offering, paying, soliciting or receiving anything of value to generate referrals for items or services payable by any federal health care program.
Xgeva, which is the brand name of the drug denosumab, was approved by the Food and Drug Administration in late 2010 for use with certain cancer patients undergoing chemotherapy. It is most commonly prescribed for patients with metastatic bone disease in order to prevent skeletal-related adverse events.
In order to increase sales of Xgeva, Amgen used data purchase agreements – which the company called the “Deep Dive” contracts – to provide financial incentives to oncologists and urologists to prescribe Xgeva. The original plan for the Deep Dive contracts called for Amgen to pay doctors to fill out a short survey on the Internet on how they were treating patients with bone cancer, including which drugs were used – whether or not Xgeva was prescribed. However, Amgen altered the original Deep Dive program design by increasing the amount of money it would pay doctors, and by offering such payments only to doctors who prescribed Xgeva for their patients. Amgen’s Xgeva marketing team also was not supposed to know the identities of the doctors who received Deep Dive contracts, but team members had access to that information. Additionally, in a further effort to influence doctors to prescribe Xgeva, Amgen provided cash payments characterized as honoraria to oncologists and urologists for participating in audience response sessions, data market research surveys, and “treatment trends” advisory board programs which touted the benefits of Xgeva.
This settlement resolves a lawsuit filed under the qui tam, or “whistleblower,” provisions of the False Claims Act, which allow private citizens with knowledge of fraud to bring civil actions on behalf of the United States and share in any recovery. The case, which was filed last year in federal court in Los Angeles by two Amgen employees – United States ex rel. Davis et al. v. Amgen Inc., et al., CV12-00570-R (MRWx) – was unsealed Tuesday after the United States elected to take over part of the case and negotiated the settlement with Amgen. The two men who originally filed the lawsuit, William Davis and Spencer Miller, will collectively receive $2.75 million as part of the settlement.
The United States Attorney’s Office for the Central District of California, and the Justice Department’s Civil Division, handled the civil settlement. This matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General.
Release No. 13-095
Vehicle Pursuit from Falfurrias Checkpoint Results in Significant SentenceRead the Press Release
CORPUS CHRISTI, Texas – Nelson Alanis-Alanis, 29, of Palmview, has been handed a significant sentence following his conviction for possession with intent to distribute approximately 96 kilograms of marijuana, United States Attorney Kenneth Magidson announced today. Alanis-Alanis pleaded guilty on April 19, 2013.
Today, Senior U.S. District Judge Hayden Head handed Alanis-Alanis a sentence of 135 months in federal prison to be followed by a three-year-term of supervised release.
At the hearing, Judge Head heard testimony from Border Patrol agents that Alanis-Alanis drove a 2004 Freightliner tractor-trailer into the Falfurrias U.S. Border Patrol checkpoint on March 12, 2013. When he was directed by Border Patrol agents to an area for further inspection, Alanis-Alanis instead fled northbound on U.S. Highway 281 at speeds of approximately 70 miles per hour. Agents pursued the tractor-trailer and, at one point, were forced into the median by Alanis-Alanis when he jerked the wheel, bringing the tractor-trailer across both lanes of traffic and into the shoulder. Alanis-Alanis later admitted he intended to run the agents off the road.
Agents also testified that the pursuit continued through the town of Falfurrias, approximately 13 miles north of the checkpoint, where Alanis-Alanis ran a red light and narrowly missed cross-traffic. He also drove through a closed section of roadway and crashed through several barricades. Heavy equipment was in operation at the time and many construction workers fled the path of the tractor-trailer. Finally, Alanis-Alanis jumped from the tractor, leaving it running and in gear, and headed toward the grounds of an a elementary school. A Border Patrol agent ran from his vehicle and climbed into the cab of the moving tractor in order to stop it. Alanis-Alanis was apprehended shortly thereafter.
Following the testimony, Judge Head described the defendant’s behavior as “outrageous,” and indicated that what concerned him most was what happened to the two Border Patrol agents. “You attack all persons of the United States when you attack someone representing the United States and its lawful authority,” Judge Head said.
Alanis-Alanis has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by Border Patrol and Homeland Security Investigations. Assistant United States Attorney Jeffrey D. Preston prosecuted the case.
University City Doctor Sentenced for Overbilling Medicare and MedicaidRead the Press Release
St. Louis, MO - DR. WIT A. JAMRY was sentenced to one year and a day and ordered to pay restitution of $119,000 and a fine of $30,000 for billing Medicare and Medicaid for services he had not performed. His company Dr. Wit-Internal Medicine Professional Geriatric, P.C. was ordered to pay $119,000 in restitution.
According to the facts filed with the court, between 2007 and 2011, Dr. Jamry billed for services to St. Louis patients while he was actually out of town or out of the country. He was away on trips to Atlanta, Poland and Mexico at the time he made 276 false claims totaling $26,227. Some of the work was performed by a nurse practitioner. Additionally, Dr. Jamry or his company, Dr. Wit-Internal Medicine Professional Geriatric, P.C., submitted over $92,773 in claims for patient visits lasting more than an hour, when neither he nor his nurse practitioners had spent that amount of time with the patients.
Jamry, University City, MO, pled guilty in February to one felony count of heath care fraud and appeared today for sentencing before United States District Judge E. Richard Webber.This case was investigated by the United States Department of Health and Human Services, the Federal Bureau of Investigation and the Missouri Medicaid Fraud Control Unit. Assistant United States Attorney Dorothy McMurtry handled the case for the U.S. Attorney’s Office.
United States Attorney’s Office Announces Transfer of over $500,000.00 to the New Hanover County Sheriff’s OfficeRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced today the transfer of $505,503.06 in forfeited currency to the New Hanover County Sheriff’s Department. The transfer was authorized by the federal equitable sharing program enacted by Congress in the Comprehensive Crime Control Act of 1984 and administered by the United States Marshal’s Service. Under the program, local and state law enforcement agencies that assist in federal investigations which lead to the forfeiture of property may share in the proceeds. The share received reflects their contribution to the investigation and may be used for any approved law enforcement purpose.
United States Attorney Thomas G. Walker stated, “This significant forfeiture of funds from illegal activities will now be used to benefit the public and enhance law enforcement in New Hanover County. The joint investigation of the matter by federal authorities and the New Hanover County Sheriff’s Office is a testament to how teamwork plays a priceless roll in the investigation of crime.”
In FY 2012 alone, over $7.5 million dollars of forfeited property was equitably shared by the federal government with 105 state and local law enforcement agencies in the 44 counties of the Eastern District of North Carolina. Funds have been used for equipment, training, improvements to buildings, and salaries for new positions, among other things. Under federal guidelines, equitably shared funds must supplement and enhance law enforcement budgets and not supplant already budgeted funds.
The investigation of this case by the New Hanover County Sheriff’s Office, in conjunction with the Drug Enforcement Administration, uncovered a trail of drug dealing and attempted murder by deceased Canadian Jonathan MacDonald that stretched as far as Southern California and Arizona. The court ultimately rejected claims to the currency by the alleged heirs of MacDonald and determined that the currency was drug proceeds.
Two Sentenced and One Pleads Guilty to Firearms ChargesRead the Press Release
MONROE/SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that two defendants were sentenced and one defendant pleaded guilty to firearms charges this week.
Defendant Sentenced to 18 Months in Prison
Lorenzo V. Rodriguez, 52, of Mexico, was sentenced on Tuesday by U.S. District Judge Tom Stagg, to 18 months in prison and three years supervised release for possession and receipt of a firearm and ammunition by an illegal alien. According to evidence presented at the guilty plea, the Monroe Police Department responded to a domestic dispute on Oct. 14, 2012. The investigation revealed that Rodriguez, an illegal alien, threatened the victim using a firearm with an obliterated serial number. The firearm was recovered at the scene and Rodriguez was taken into custody. He admitted to previously purchasing the firearm from an unknown person. Rodriguez pleaded guilty on March 18, 2013.
The ATF, U.S. Immigrations and Customs Enforcement and the Monroe Police Department investigated the case. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Defendant Sentenced to 70 Months in Prison
Terrance L. Ford, 32, of Monroe, La., was sentenced on Tuesday by U.S. District Judge Robert G. James, to 70 months in prison and three years supervised release for being a felon in possession of a firearm. According to evidence presented at the guilty plea, Ford was arrested on June 4, 2012 after being found in possession of a .40 caliber semi-automatic pistol. Ford had been previously convicted of second degree battery and distribution of PCP, which is a controlled dangerous substance.
The ATF and the Monroe Police Department investigated the case. Assistant U.S. Attorney Robert W. Gillespie Jr. prosecuted the case.
Virginia Resident Pleads Guilty to Firearms Charges
William Thomas Holland III, 32, of Virginia, pleaded guilty before U.S. District Judge Tom Stagg today, to being a felon in possession of a firearm and ammunition, and possession of a firearm with an obliterated serial number. According to evidence presented at the guilty plea, Holland’s vehicle was parked near a wooded area on Barksdale Air Force Base (BAFB). Marijuana was seen in the car. After a search of the car, marijuana and other items were seized. Holland admitted the car was his. At the time, the defendant resided on BAFB with his wife who is in the military, but he was not. A search of the residence was authorized, and a loaded .357 caliber revolver with an obliterated serial number was found. Holland admitted that he possessed the firearm and ammunition. Holland had been previously convicted of a felony battery charge in California. He faces up to 10 years in prison for the felon in possession of a firearm count and five years for the possession of a firearm with an obliterated serial number count. Both counts also carry a $250,000 fine and up to three years supervised release. A sentencing date of Oct. 3, 2013 was set.
The ATF, the Barksdale Air Force Base Security Forces and the Air Force Office of Special Investigations conducted the investigation. Assistant U.S. Attorneys Robert W. Gillespie Jr. and Robert J. France are prosecuting the case.
Two Luzerne County Residents Charged Federally for Distribution of Prohibited “Bath Salts”Read the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a federal grand jury returned an indictment on July 9, 2013 charging two Luzerne County residents with Conspiracy to Distribute Alpha-PVP, a prohibited controlled substance. The two individuals were arrested on July 10.
According to United States Attorney Peter J. Smith, Todd Morgans, 34, and Christine Policare, 20, both of West Pittston, Pennsylvania, were charged by the grand jury with Conspiracy to Distribute a Controlled Substance Analogue. The offense allegedly occurred between December 2011 and July 2013 in and around West Pittston, PA and nearby communities in Luzerne County.
Alpha-PVP is a controlled substance analogue of MDPV, which is commonly referred to as “bath salts”. A controlled substance analogue is a chemically similar substance which has a substantially similar effect on the central nervous system as that of the Schedule I substance.
The Indictment contains a forfeiture allegation seeking to forfeit Morgans’ residence at 217 Liberty Street, West Pittston, PA; two bank accounts; a Chevy Colorado Z-71 truck and a money judgment in the amount of $700,000, representing the proceeds of the conspiracy.
The defendants were arrested early Wednesday morning at the 217 Liberty Street house. In conjunction with the arrests, a federal search warrant was executed at the Liberty Street residence by the Pennsylvania State Police Special Emergency Response Team. The entry team encountered fortified doors and counter surveillance equipment believed to be installed to evade law enforcement. Investigators seized approximately 2000 grams of Alpha-PVP, drug packaging materials, scales, three (3) firearms, ammunition and approximately $40,000 in cash.
Based on what was found at the residence and information obtained during the investigation, the alleged drug distribution ring is allegedly linked to the Aryan Brotherhood organization. White supremacist paraphernalia was found in the residence. The residence was allegedly the main location for the organization’s distribution of bath salts and the meeting place for an Aryan Brotherhood Chapter led by Morgans. The investigation of this organization remains ongoing.
U.S. Attorney Smith noted that bath salts and MDPV analogues are highly dangerous drugs often causing extreme irrational behavior on the part of the individuals who use them, increasing the potential for harm to residents and other innocent bystanders. As a result, a dwelling used as a storage or distribution site for such drugs is both a public safety and health hazard. The substance appears to come to the United States from Asia. Finding the source of the drugs is part of the ongoing investigation.
The defendants, who are currently incarcerated, are scheduled to appear Friday July 12 starting at 10:30 A.M. before United States District Court Judge Malachy E. Mannion for a detention hearing.
The maximum sentence for the offense is imprisonment for 20 years, a fine of $1,000,000 and supervised release for a period of at least 3 years.
This case is the result of a joint investigation and ongoing cooperation among the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Pennsylvania State Police, The United States Postal Inspection Service, the West Pittston Police Department, Jenkins Township Police Department, and the Pittston City Police Department.
Prosecution is assigned to Assistant United States Attorney Amy C. Phillips.An Indictment or Information is not evidence of guilt but simply a description of the charge made by the Grand Jury and/or United States Attorney against a defendant. A charged Defendant is presumed innocent until a jury returns a unanimous finding that the United States has proven the defendant’s guilt beyond a reasonable doubt or until the defendant has pleaded guilty to the charges.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Two Former Mdwfp Employees Sentenced on Wildlife Related ChargesRead the Press Release
Jackson, Miss – Two former employees of the Mississippi Department of Wildlife, Fisheries and Parks (MDWFP) were sentenced in U.S. District Court on July 10, 2013, on wildlife-related charges, announced U.S. Attorney Gregory K. Davis.
Darrel Eugene Dew, a former MDWFP Conservation Officer, pled guilty to taking wild turkeys on federal lands in excess of the bag limit, and failing to submit National Wildlife Refuge User Information Cards on two separate occasions upon the taking and transporting of two white-tailed deer. He was fined $750 plus a $60 assessment fee, and he agreed to forfeit one Remington 870 Express Magnum shotgun, one compound bow, four eastern wild turkey fans, one nine-point white-tailed deer skull with antlers, one ten-point white-tailed deer skull with antlers, sixteen frozen eastern wild turkey feet and eight frozen eastern wild turkey beards.
Jason Thomas Kerr, a former MDWFP Area Manager, was found guilty of conspiring with Dew to commit offenses against the United States by failing to comply with the Sunflower Wildlife Management Area Daily Visitor User Permit Card requirements. Kerr was fined $500 plus a $10 assessment.
Both Dew and Kerr were placed on one year of federal probation which prohibits them from hunting anywhere worldwide, and they are both prohibited from entering any U. S. National Forest or U.S. National Wildlife Refuge for a period of two years.
This case was the result of a joint investigation conducted by the United States Fish and Wildlife Service, the United States Forest Service and the Mississippi Department of Wildlife, Fisheries and Parks. The case was prosecuted by Assistant U.S. Attorney Darren LaMarca.
###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.
Trio of Used Car Salesmen Plead Guilty in Money Laundering Conspiracy, Forfeit Almost $12 MillionRead the Press Release
Memphis, TN – Three used car salesmen have entered guilty pleas for their roles in selling cars to drug traffickers in an effort to launder drug proceeds, announced United States Attorney Edward L. Stanton III.
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Wayne David McAlpin, Jr., 50, of Memphis, TN pleaded guilty to one count of money laundering and one count of filing fraudulent documents with the Internal Revenue Service (IRS). Brian Bowman, 46, of Lakeland, TN; and James Austin, a/k/a “the Rev,” 61, of Memphis, TN, each pleaded guilty to one count of filing fraudulent documents with the IRS.
In addition, McAlpin, Jr. and Bowman agreed to forfeit almost $12 million dollars in bank accounts, investment accounts and vehicles, including: a 2008 Bentley Continental GTC; a 2011 Audi A8; a 2009 Cadillac Escalade; and a 2011 Lexus GX460.
“While masking themselves as legitimate businessmen, these individuals lined their pockets with excessive profits by helping drug dealers enjoy the lavish fruits of their criminal acts,” said U.S. Attorney Edward L. Stanton III. “These guilty pleas should serve as a clear reminder to those business operators who facilitate fraud and money laundering schemes that while you think you may be flying under the radar, you are not. It’s just a matter of time before you are caught and brought to justice.”
This investigation was conducted in conjunction with prosecutors in Memphis as part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Program, which seeks to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.
“Traffickers may be equipped with a multitude of sophisticated methods in which to hide their assets, but Drug Enforcement Administration’s (DEA) relentless pursuit to disrupt and destroy their drug trafficking activities prevailed in this case,” said Brian K. Chambers, the Resident Agent in Charge of the DEA Memphis Resident Office. “This investigation was a success because of the multi-level law enforcement cooperation.”
According to the agreed-upon statement of facts filed with the court during the men’s respective plea hearings, during the time in question, McAlpin, Jr. was president of Budget Auto Sales, and Austin worked as a salesman there. Bowman was president of Pyramid Used Car Sales. These businesses were frequented by individuals engaged in criminal activity, including, but not limited to, illegal drug trafficking. The businesses sold multiple vehicles to drug traffickers, knowing they had previously had vehicles seized by law enforcement for transporting and concealing illegal drugs.
As part of the criminal conspiracy to conceal the fact that cars were being purchased with the proceeds of illegal drug trafficking, each man submitted IRS Form 8300s with false and misleading information. This form requires any car dealership to report all cash transactions of $10,000 or more. The individuals also titled vehicles in the names of other people, as part of an effort to hide the transactions from law enforcement.
"Structuring financial transactions to avoid currency reporting requirements is a criminal violation of federal law under the Bank Secrecy Act. Deliberately avoiding BSA requirements is a form of money laundering," stated Christopher A. Henry, Special Agent in Charge of the Nashville Field Office. “IRS Criminal Investigation is committed to unraveling complex financial transactions and money laundering schemes where individuals attempt to conceal the true source of their money."
This crime was investigated by the Drug Enforcement Administration, IRS Criminal Investigations, the Memphis Police Department, and the Shelby County Sheriff’s Department. The case was prosecuted by Assistant United States Attorneys Chris Cotton, Daniel French, and Jerry Kitchen on behalf of the government.Thoreau Man Pleads Guilty to Unlawful Possession of Unregistered Sawed-Off ShotgunRead the Press Release
ALBUQUERQUE – Joe Herrera, Jr., 43, an enrolled member of the Navajo Nation who resides in Thoreau, N.M., pleaded guilty this morning to unlawfully possessing a sawed-off shotgun that was not registered to him under a plea agreement with the U.S. Attorney’s Office.
Herrera was indicted in Feb. 2013, on the charge to which he pleaded guilty this morning. According to the indictment, Herrera unlawfully possessed the unregistered sawed off shotgun on Aug. 16, 2011, in McKinley County, N.M. Herrera admitted committing the offense when he entered his guilty plea this morning.
At sentencing, Herrera faces a maximum possible penalty of ten years in federal prison. He remains on conditions of release under pretrial supervision pending his sentencing hearing, which has yet to be scheduled.
The case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Gallup office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Novaline D. Wilson is prosecuting the case.
Tennessee Man Pleads Guilty to Identity TheftRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Omoruyi Ogbeide, of Knoxville, Tennessee, pleaded guilty before U.S. District Judge Richard J. Arcara, to aggravated identity theft. The charge carries a mandatory penalty of two years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Maura K. O'Donnell, who handled the case, stated that the defendant was arrested by Amherst Police in May 2012 for patronizing a prostitute and was found to be in possession of multiple credit cards in the names of unknown individuals. Ogbeide's hotel room was later searched and law enforcement officers found additional fraudulent credit cards and credit-card making equipment. They also found a computer containing stolen identifying information, such as names, dates of birth, and social security numbers of numerous different individuals. The defendant used the information to produce fraudulent credit cards.
The plea was the culmination of an investigation on the part of Special Agents of the U.S. Secret Service, under the direction of Special Agent in charge Tracy Gast and the Amherst Police Department, under the direction of Chief Chief John Askey.
Sentencing is scheduled for November 20, 2013, at 12:30 p.m. before Judge Arcara.
Ten-year Sentence for Dayton Man Who Viewed Child Pornography While A Patient at Va Medical CenterRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
DAYTON –Charles Edward Suttles, 56, of Dayton has been sentenced to 120 months in prison for viewing sexually explicit images of minor children while he was a patient at the Veterans Affairs Medical Center in Dayton. Suttles was also sentenced to be under court supervision for the rest of his life.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Gavin McClaren, Resident Agent in Charge, Department of Veterans Affairs, Office of Inspector General, Criminal Investigation Division announced the sentence handed down today by U.S. District Judge Timothy S. Black.
According to court documents, Suttles was a resident of the VA Medical Center in Dayton in July 2010. VA Police, acting in response to a tip, found Suttles viewing child pornography on a computer in a computer lab set up for residents to use to search and apply for jobs. The officer seized a thumb drive that Suttles had plugged into the computer. A forensic analysis of the thumb drive revealed more than 500 images and more than a dozen videos of child pornography.
VA-OIG agents arrested Suttles in January 2013. He has been in custody since his arrest. Suttles pleaded guilty on March 28, 2013 to one count of possession of child pornography.
“Pursuing those who sexually exploit children is a top priority of all law enforcement particularly when it endangers our nation’s veterans and their families,” said Gavin McClaren, United States Department of Veterans Affairs – Office of Inspector General, Resident Agent in Charge, Cleveland.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
U.S. Attorney Stewart commended the investigation by the VA Inspector General’s Criminal Investigation Division, the Dayton VA Medical Center Police who assisted with the investigation, and Assistant U.S. Attorney Benjamin Glassman, who represented the United States in the case.
Telford Man Indicted on Child Porn ChargesRead the Press Release
PHILADELPHIA - Timothy James Kane, 32, of Telford, PA, was charged today by Indictment1 with one count of possession of child pornography, one count of receipt of child pornography and one count of distribution of child pornography announced United States Attorney Zane David Memeger.
If convicted, Kane faces a maximum sentence of 50 years imprisonment, a five year mandatory minimum term of imprisonment, a three-year term of supervised release, a $750,000 fine, and a $300 special assessment.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Paul G. Shapiro.
Click here to view the indictment
1An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Springfield Man Pleads Guilty to Possessing Child Porn, Faces at least 10 Years in PrisonRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield man with a prior child pornography conviction has pleaded guilty in federal court to possessing child pornography.
Aaron Douglas Wold, 29, of Springfield, pleaded guilty before U.S. Magistrate Judge David P. Rush on Wednesday, July 10, 2013 to the charge contained in an Aug. 29, 2012 federal indictment.
On Aug. 8, 2012, law enforcement officers contacted Wold at his residence to perform a sex offender compliance check. Wold was convicted of possessing child pornography in Dakota County, Minn. on Jan. 23, 2007. He was sentenced in that case to one year and one day of incarceration and five years of probation.
During the compliance check, Wold was questioned and eventually showed officers his laptop computer. Officers seized the computer and conducted a forensic examination, which found numerous images of child pornography on the laptop.
Under federal statutes, Wold is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to 20 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. Wold must forfeit the laptop computer to the government. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations, the U.S. Marshal’s Service and the Jasper County, Mo., Sheriff’s Department.
Springfield Man Charged with Concealing Assets, Making False Statements in Bankruptcy CaseRead the Press Release
Springfield, Ill. – A Springfield, Ill., man, Michael A. Carr, 50, of St. James Court, has been charged with concealing assets and making false statements related to bankruptcy proceedings, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. The federal grand jury returned the 10-count indictment late yesterday afternoon. The U.S. Clerk of the Court will issue a summons to Carr to appear in federal court in Springfield for arraignment.
According to the indictment, on June 8, 2010, Carr filed a bankruptcy petition to discharge his debts under Chapter 7 of the U.S. Bankruptcy Code. The indictment alleges that, on various occasions, Carr fraudulently concealed property and made false statements in his filings and during bankruptcy proceedings while he was under oath. At the time Carr filed for bankruptcy and in subsequent hearings and filings, Carr allegedly concealed that he owned a motorcycle, a sport utility vehicle, four all-terrain vehicles, and a pending insurance claim arising from the theft of a 1995 Harley-Davidson Softail motorcycle. Further, on or about July 12, 2010, Carr allegedly gave false statements under oath when he testified that his wife’s bank account held $20,000, when he knew that approximately one week prior to the hearing date, his wife had withdrawn $18,000 of the $20,000 and given the cash to Carr.
The charges resulted from a referral by the U.S. Trustee for Indiana and Central and Southern Illinois (Region 10) to the Central District of Illinois Bankruptcy Fraud Working Group. The charges were investigated by the FBI and the U.S. Postal Inspection Service. Assistant U.S. Attorney Gregory K. Harris is prosecuting the case.
“Abuse of the bankruptcy system by concealing assets for personal gain threatens the integrity of the bankruptcy system and undermines public confidence in that system,” stated Nancy J. Gargula, U.S. Trustee for Central Illinois, Southern Illinois and Indiana (Region 10). “I am grateful to U.S. Attorney Lewis and our law enforcement partners for their strong commitment to combating fraud and abuse in bankruptcy cases.”
If convicted, the statutory penalty for each count of concealing assets (two counts); making false statements in a bankruptcy petition (one count); making false statements under oath (two counts), and, submitting false documents (one count) is up to five years in prison. Carr is also charged with one count of falsification of records in bankruptcy, an offense that carries a statutory penalty of up to 20 years in prison. Final sentences are determined by the court. In imposing sentence, the court may consider federal sentencing guidelines, which include a defendant’s criminal history, the amount of loss, and other applicable factors.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill.
Springfield Businessman Charged with Filing False Income Tax ReturnsRead the Press Release
Springfield, Ill. – A federal grand jury has charged a Springfield, Ill., man who does business as ‘The Granite Guy,’ George J. “Jerzy” Jaworski, with four counts of filing false income tax returns for the calendar years 2005 through 2008.
The indictment, returned late yesterday, alleges that Jaworski filed false income tax returns for himself and his wife that substantially understated receipts from ‘The Granite Guy,’ by at least $300,000 in 2005; at least $250,000 in 2006; more than $100,000 in 2007; and, at least $75,000 in 2008.
The charges are the result of an investigation by Internal Revenue Service-Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Patrick D. Hansen.
The U.S. Clerk of the Court will issue a summons for Jaworski to appear in federal court in Springfield for arraignment.
If convicted, each count of filing a false tax return carries a statutory penalty of up to three years in prison.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Southlake, Texas, Man Sentenced to 24 Months in Federal Prison for Role in Bank Fraud ConspiracyRead the Press Release
Defendant Conspired With Former Vice-President of Pavillion Bank
DALLAS — Jason Dvorin, 45, of Southlake, Texas, was sentenced this morning by U.S. District Judge Reed C. O’Connor to 24 months in federal prison and ordered to pay $111,639 in restitution, following his conviction at trial in February 2013 on one count of conspiracy to commit bank fraud. Judge O’Connor ordered that Dvorin surrender to the Bureau of Prisons on September 12, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Dvorin entered into an agreement with Chris Derrington, the vice president of Pavillion Bank, located on West Campbell Road in Richardson, Texas, to deposit worthless checks in return for immediate access to the bank’s funds. Dvorin would bring in worthless credit card checks, or checks drawn on a closed account, and present them to Derrington for deposit. Knowing the checks were worthless, Derrington gave Dvorin immediate access to the bank’s funds. As soon as one worthless check was returned, Dvorin would deposit another worthless check. This pattern continued over the course of five years and resulted in 224 fraudulent deposits by Dvorin and the Derrington. By the time the scheme was uncovered, Pavillion bank sustained a loss in excess of $300,000.
Derrington, 61, of Dallas, was charged in a separate case with the same offense and pleaded guilty to that charge in May 2012. He was sentenced in March 2013 to a five-year term of probation and ordered to pay more than $778,000 in restitution.
Today’s announcement is related to efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit http://www.stopfraud.gov/.
The cases were investigated by the FBI and the FDIC Office of Inspector General. Assistant U.S. Attorneys Mindy Sauter and Michael Elliott prosecuted.
Slidell Man, Michael Page, Sentenced to 5 Years for Federal Drug ViolationRead the Press Release
MICHAEL PAGE, age 36, a resident of Slidell, Louisiana, was sentenced to 60 months imprisonment by U. S. District Court Judge Lance M. Africk after pleading guilty to one count of conspiracy to distribute and possess with intent to distribute cocaine base (“crack”), announced United States Attorney Dana J. Boente. In addition to the term of imprisonment, Judge Africk ordered that PAGE be placed on 3 years of supervised release following the term of imprisonment, during which time the defendant will be under federal supervision and risks an additional term of imprisonment should he violated any terms of the supervised release.
According to court documents, PAGE conspired with others, known and unknown from February of 2010 until September of 2010 to distribute and possess with intent to distribute at least twenty-eight (28) grams of crack cocaine.
This case was investigated by the Federal Bureau of Investigation with assistance from the Narcotics Unit of the St. Tammany Parish Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Edward J. Rivera.
Sentences for July 08-11, 2013Read the Press Release
Larry D. Sinning, Jr., 27, of Gillette, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on July 11, 2013, for conspiracy to possess with intent to distribute 113 grams of methamphetamine and for possession of a firearm in furtherance of a drug felony. Sinning was arrested in Gillette, Wyoming. He received 60 months imprisonment, to be followed by four years of supervised release and was ordered to pay a $200.00 special assessment and a $500.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Michael James Adams, 26, of Torrington, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on July 10, 2013, in two separate federal cases. Adams was arrested in Gillette, Wyoming. The Court imposed a sentence of 120 months imprisonment for count one in case 13CR-00004 – conspiracy to possess with intent to distribute 1,106 grams of methamphetamine, 46 months of imprisonment for count one in case 12CR-00162 – felon in possession of a firearm, to be served concurrently with count one in 13CR-00004. Both sentences shall begin consecutively to defendant’s current state sentence in Sweetwater County. These sentences shall be followed by a sentence of 60 months imprisonment for Adams’ conviction of possession of a firearm in furtherance of a drug felony in case 13CR00004, to be served consecutively with all other terms. The sentences of imprisonment shall be followed by five years of supervised release. Adams was also ordered to pay a $300.00 special assessment and a $1,800.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Kyle A. Carothers, 20, of Gillette, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on July 10, 2013, for conspiracy to possess with intent to distribute 1.9 kilograms of methamphetamine. Carothers was arrested in Gillette, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release and was ordered to pay a $100.00 special assessment and a $400.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Robert C. Brodie, 30 of Gillette, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on July 8, 2013, for conspiracy to possess with intent to distribute 680 grams of methamphetamine. Brodie was arrested in Gillette, Wyoming. He received 120 months imprisonment, to be followed by five years of supervised release and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Whitney Dawn Rose, 23, of Gillette, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on July 8, 2013, for conspiracy to possess with intent to distribute 1.9 kilograms of methamphetamine. Rose was arrested in Gillette, Wyoming. She received 121 months imprisonment, to be followed by five years of supervised release and was ordered to pay a $100.00 special assessment and a $400.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Heidi Lee Blankenship, 30, of Gillette, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on July 8, 2013, for conspiracy to possess with intent to distribute between 553 and 680 grams of methamphetamine. Blankenship was arrested in Gillette, Wyoming. She received 135 months imprisonment, to be followed by five years of supervised release and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation.
Richard Lierheimer, 44, of McKinleyville, California, was sentenced by Federal District Court Judge Alan B. Johnson on July 8, 2013, for possession with intent to distribute 175 pounds of marijuana. Lierheimer was arrested in Cheyenne, Wyoming. He received 15 months imprisonment, to be followed by three years of supervised release and was required to forfeit his ownership in a Cessna aircraft. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Sandusky Man Sentenced to 10 Years in Prison for Child Pornography ConvictionRead the Press Release
A Sandusky man was sentenced to 10 years in prison for child pornograpyh crimes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Duane Wilson, 45, pleaded guilty earlier this year to one count of receipt of child pornography, which occurred between 2005 and 2009, according to court documents.
Wilson also admitted to sexually abusing a child, approximately 10 years old, according to court documents.
This case was prosecuted by Assistant U.S. Attorney Ava Dustin following an investigation by the Federal Bureau of Investigation, Toledo.
Rosebud Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that Dwight Black Spotted Horse, age 28, of Rosebud, South Dakota, appeared before U.S. District Judge Roberto A. Lange on July 8, 2013, and pled guilty to Failure to Register as a Sex Offender.
The maximum penalty upon conviction is 10 years in custody, a $250,000 fine, or both; life of supervised release; and $100 to the Federal Crime Victims Fund.
On October 13, 2006, Black Spotted Horse was convicted of Sexual Abuse of a Minor. The Court sentenced Black Spotted Horse to 70 months in custody, three years of supervised release, and ordered that he register as a sex offender. He began his term of supervised release on August 27, 2011. Black Spotted Horse absconded from supervised release on April 1, 2013, and failed to register a new address by April 4, 2013, as required by the Sex Offender Notification Act.
The investigation was conducted by the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Marie H. Ruettgers.A presentence investigation was ordered and a sentencing date was set for September 30, 2013. The defendant was remanded to the custody of the U.S. Marshal pending sentencing.
# # #Rockville Man Pleads Guilty in Mortgage Fraud SchemeRead the Press Release
Greenbelt, Maryland - Edgar Galdamez, age 36, of Rockville, Maryland, pleaded guilty today to wire fraud in connection with a mortgage fraud scheme which resulted in losses of over $515,000.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to his plea, from at least September 2006 through May 2007, Galdamez and others contacted individuals who wished to purchase homes as investment properties. Galdamez and others then intentionally prepared and submitted false loan applications in the buyers’ names to the lending institution to qualify these individuals for loans that they otherwise were unqualified to secure. For instance, they typically inflated the buyer’s income and omitted liabilities. They also falsely stated on loan applications that the purpose of the property was to be the borrowers’ primary residence in order to receive a lower interest rate. Galdamez knew that the property was intended to be used as an investment property. These residential mortgages were destined to fail because the borrowers did not have the income or assets to make the necessary mortgage payments. Galdamez and others profited from these fraudulent transactions by collecting origination fees, commissions and broker’s fees from each loan that closed.
As a result of the fraud scheme, the lender lost at least $515,500. Galdamez will be required to forfeit at least $515,500 and pay restitution.
Galdamez faces a maximum penalty of 30 years in prison and a $1 million fine. U.S. District Judge Peter J. Messitte scheduled sentencing for November 5, 2013 at 9:30 a.m.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available Here.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney Sujit Raman, who is prosecuting the case.
Rochester Man Sentenced for Possessing Methamphetamine with the Intent to DistributeRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 45-year-old Rochester man was sentenced for possessing methamphetamine with the intent to distribute it. United States District Court Judge Joan N. Ericksen sentenced Christopher Lee Talamantes to 210 months in prison on one count of possession with intent to distribute methamphetamine. Talamantes was indicted on July 10, 2012, and pleaded guilty on December 11, 2012.
In his plea agreement, Talamantes admitted that on September 15, 2011, officers seized approximately $1,900 and 600 grams of methamphetamine during the execution of a search warrant at his apartment. In addition, on July 28, 2011, officers seized approximately 2.6 grams of methamphetamine and $13,748 during the execution of a search warrant at his residence.
This case was the result of an investigation by the U.S. Drug Enforcement Administration, the Minnesota Bureau of Criminal Apprehension, and the Olmsted County Sheriff’s Office. It was prosecuted by Assistant U.S. Attorney Julie E. Allyn. To learn more about the harmful effects of methamphetamine, visit http://www.justice.gov/dea/pr/multimedia-library/publications/drug_of_abuse.pdf#page=48.Richland County Man Sentenced on Methamphetamine Related ChargesRead the Press Release
Mark W. Keller, 51, of Olney, IL, was sentenced on July 10, 2013, to federal prison on methamphetamine related charges, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Keller was sentenced to 120 months in prison, 4 years supervised release, and was fined $20,000. Keller had previously pleaded guilty to two counts in a federal indictment. Count 1 charged that from February 2011, until on or about February 8, 2012, in Richland County, Keller conspired to knowingly and intentionally manufacture more than 50 grams of methamphetamine. Count 2 charged that on February 8, 2012, in Richland County, Keller possessed with the intent to distribute methamphetamine.
The investigation in this case was conducted by the Richland County Sheriff’s Office.
The case was handled by Assistant United States Attorney George Norwood.
RGV DME Owner Gets 12 Years in Federal Prison for $11 Million Health Care Fraud SchemeRead the Press Release
McALLEN, Texas - The owner of a now defunct McAllen area durable medical equipment (DME) business has been ordered to prison for his role in a conspiracy and scheme to defraud Medicare and Medicaid through fraudulent billings, United States Attorney Kenneth Magidson and Texas Attorney General Greg Abbott announced today. The scheme involved approximately $11.1 million in false claims to Medicare and Medicaid.
Former RGV DME Owner Marcello Herrera, 40, along with his wife Carla Cantu Herrera, 32, and their former employee Ramon De La Garza, 52, all of Mission, pleaded guilty on Feb. 21, 2013, to conspiring to defraud Medicare and Texas Medicaid. Beatriz Ramos, 28, of Edinburg, a former biller for RGV DME, pleaded guilty to the conspiracy on Oct. 16, 2012. Marcelo Herrera and De La Garza also pleaded guilty to one count of aggravated identity theft for unlawfully using the identity of a beneficiary to bill Medicare and Medicaid $5,000 for a power wheelchair that was not requested, prescribed, needed or delivered.
Today, Marcello Herrera was handed a sentence of 120 months for the conspiracy conviction in addition to a mandatory 24-month-term for aggravated identity theft which must be served consecutively to the other sentence imposed, resulting in a total 144 months in federal prison. He will also serve three years of supervision following his release. In addition to the prison sentence, he was ordered to pay restitution to Medicare and Medicaid in the amount of $6,103,953.74.
As part of his plea of guilty, Marcelo Herrera agreed to the entry of a money judgment against him in the sum of $6,103,953.74 and to forfeit wheelchairs, scooters and other DME items discovered in his leased storage facility in Alamo, which had been rented by him and ultimately seized by the FBI.
From early 2004 through late 2011, Marcello Herrera, who did business as RGV DME in the McAllen area, engaged in and directed a scheme to submit fraudulent claims to Medicare and Texas Medicaid for power wheelchairs, incontinent supplies, hospital beds and mattresses as well as other DME supplies. At various times, his wife, Carla Cantu Herrera - who admitted to being marketing director, chief financial officer, chief operating officer, office manager, human resources manager and co-owner of RGV DME - and billers De La Garza and Ramos all participated in the conspiracy and aided Marcello Herrera and each other in the submission of fraudulent billings, wire fraud and theft of the identities of beneficiaries and doctors.
In court on Feb. 21, 2013, Marcelo Herrera admitted that during the time of his fraudulent scheme, he submitted or caused the submission of more than $11.1 million in false and fraudulent claims to Medicare and Texas Medicaid for which he illegally received in excess of $6.1 million. Carla Herrera admitted that during her participation in the conspiracy, the fraudulent billings exceeded $9.9 million for which they received illegal payments exceeding $5.5 million, while De La Garza admitted that during his participation in the conspiracy the fraudulent billing exceed $9.6 million for which payments exceeded $5 million. Marcelo Herrera, Carla Herrera and De La Garza admitted that approximately 85% of their Medicare and Texas Medicaid billings were false and fraudulent.
The three defendants in court on Feb. 21, 2013, also admitted that marketers were used to obtain Medicare and Medicaid identification numbers and other information from beneficiaries which they in turn used to fraudulently bill Medicare and Medicaid for DME that was either never prescribed or prescribed but never delivered. The Herreras further acknowledged they or their marketers attempted to obtain referrals of patients or orders for DME from doctors in exchange for gifts.
Ramon De La Garza will be sentenced July 24, while Beatriz Ramos and Carla Herrera are set for Aug. 27 and Sept. 18, 2013, respectively.
Marcelo Herrera has been in custody since his arrest on June 12, 2012. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was conducted by the FBI, the U.S. Department of Health and Human Services-Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit. Special Assistant United States Attorney Rex Beasley and Assistant United States Attorney (AUSA) Grady Leupold are prosecuting the case. AUSAs Mary Ellen Smyth and Kristine Rollinson assisted with the asset forfeiture aspects of the case.
Pukwana Man Sentenced for Simple Assault and Assault by Striking, Beating and WoundingRead the Press Release
United States Attorney Brendan V. Johnson announced that Samuel Antelope, age 32, of Pukwana, South Dakota, pled guilty to an Information that charged him with Simple Assault and Assault by Striking, Beating and Wounding.
Antelope was sentenced on July 10, 2013, by U.S. Magistrate Judge Mark A. Moreno to 6 months of imprisonment on each count to be served consecutively, for a total custody sentence of 12 months and a $20 special assessment to the Federal Crime Victims Fund.
The charges stem from an incident occurring on November 3, 2012, when one of the victims was with her boyfriend at her Fort Thompson home. In the early evening, the second victim, her boyfriend, and Antelope came over to drink alcohol. An argument began between the partygoers. The argument turned physical, and Antelope struck the victims multiple times with his hands and fists.
One victim suffered a black eye, multiple bruises and swelling to her face and body. The second victim suffered an upper lip laceration that required three stitches to repair.
The investigation was conducted by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Antelope was immediately turned over to the custody of the U.S. Marshals Service.
# # #Provo Man Faces Firearms Charges Following FBI JTTF InvestigationRead the Press Release
SALT LAKE CITY – A three-count complaint unsealed Thursday morning in federal court in Salt Lake City charges a Provo, Utah, man with violations of federal firearms laws in connection with an FBI criminal investigation that started in November.
Keith Max Pierce, age 34, who was arrested Wednesday morning in Provo, is charged with failure to register as a dealer and manufacturer; illegal possession of machine guns; and possession of a firearm with an obliterated serial number. He had an initial appearance on the charges Thursday morning before U.S. Magistrate Judge Brooke C. Wells. Federal prosecutors are seeking detention. Magistrate Judge Wells scheduled a detention hearing for Monday at 9:30 a.m.
According to an affidavit filed with the complaint, the investigation of Pierce started in November after Pierce made statements to an FBI source regarding bombing the Internal Revenue Service in Provo, the Provo Police Department, and a court building. Pierce also discussed access he had to fully automatic weapons.
The complaint alleges that during the course of the investigation, Pierce made a deal to make one fully automatic AR-15 firearm for an FBI undercover agent. The complaint alleges that in late May, Pierce delivered one modified AR-15 fully automatic firearm with an obliterated serial number to the FBI agent. ATF testing of the firearm concluded that it is a machine gun that is not registered to Pierce in the National Firearms Registration and Transfer Record. Possession of the firearm is a violation of federal law.
The potential maximum penalty for each count in the complaint is 10 years in prison and a fine of $250,000.
Complaints are not findings of guilt. Individuals charged in a complaint are presumed innocent unless or until proven guilty in court.
The case is being prosecuted by the U.S. Attorney’s Office in Utah. The case is being investigated by agents and officers from agencies involved in the FBI’s Joint Terrorism Task Force, the ATF, Federal Protective Services, the Utah Department of Public Safety, and the U.S. Treasury Inspector General for Tax Administration.
In another FBI JTTF case, a July 1, 2014, trial date has been set in federal court in Idaho for Fazliddin Kurbanov, age 30, of Boise. Kurbanov was arrested in May on federal terrorism charges filed in Boise and Salt Lake City. The U.S. Attorney’s Office in Idaho is proceeding with its case first. Kurbanov will be transferred to Utah to face one count of distribution of information relating to explosives, destructive devices, and weapons of mass destruction at the conclusion of the prosecution in Idaho.Program Fraud Indictments AnnouncedRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, and Gerald Roy, Special Agent in Charge, United States Department of Health and Human Services, Office of Inspector General, Office of Investigations for Region 7 (Kansas City office), announced today a second wave of indictments arising out of the abuse of a Medicaid program in Illinois that pays personal assistants to assist Medicaid recipients with general household activities and personal care. The program is intended for recipients under 60 years of age and is ostensibly designed to reduce Medicaid expenditures by avoiding more expensive institutional care, including nursing home care.
In this second wave, fifteen individuals, who reside throughout southern Illinois, have been charged in twelve separate indictments by a Federal Grand Jury in Benton, Illinois with the offense of Health Care Program Fraud. The charges carry a maximum penalty of 10 years imprisonment, a $250,000 fine, and up to 3 years of supervised release.
Due to numerous complaints concerning the Home Services Program, law enforcement agencies in southern Illinois initiated a project to investigate and hold accountable individuals perpetrating fraud against the Home Services Program. These indictments allege that the charged individuals exploited the Home Services Program and received Medicaid funds to which they were not entitled. Several investigations uncovered services being billed, but not performed, due to the personal assistant being in jail or out of town. Other investigations revealed the beneficiary residing in a hospital, a nursing home, or out of town at the time the services were supposedly rendered at the beneficiary’s home. It was also learned that some personal assistants and beneficiaries were receiving the Medicaid payments for services not rendered and simply splitting the paychecks. One of the worst examples of fraud on the program, as alleged in the charging documents, was a beneficiary who got out of jail for a one day furlough to meet with his case worker at home so he could continue receiving the Home Services Program benefits. Allegedly, that beneficiary got approved for the services and then returned to jail. It is further alleged that Medicaid paid for personal assistant services not knowing the beneficiary was in jail for several months.
The persons charged in this wave, their ages, and their last known city of residence are:
Sherri R. Goree, age 36, East St. Louis, Illinois
Lisa C. Luckett, age 49, Cahokia, Illinois
Henry J. Billups, III, age 48, Cahokia, Illinois
Karashia A. Tabbs, age 45, Cahokia, Illinois
Valeria W. Johnson, age 56, Centerville, Illinois
Roslyn R. James, age 47, Alton, Illinois
Irma Jones, age 67, Centerville, Illinois
Rosalyn Ross, age 46, Swansea, Illinois
Betty Jean Mays, age 43, Centralia, Illinois
Michael E. Mays, age 53, Centralia, Illinois
Brian D. Adams, age 31, Mount Vernon, Illinois
Tisa V. Vaughn, age 49, Florissant, Missouri
Donald Ray Keip, age 39, Mount Vernon, Illinois
William Dale Sidener, age 30, Ramsey, Illinois
Darron A. Suggs, age 39, East St. Louis, IllinoisAn Indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
This round of indictments brings to twenty-nine (29) the number of defendants who have been indicted for abusing the program. Defendants include both Medicaid beneficiaries (eleven) and personal assistants (eighteen). The first wave of indictments began on May 24, 2012. Most of the indicted cases involved alleged collusion between the beneficiaries and the purported personal assistants.
While the stated purpose of the program is to keep Medicaid recipients in their home and out of more costly institutional settings, prosecutions to date have shown an essential failure to achieve these stated objectives. Cases we have prosecuted include the following:
• Personal assistant boyfriend claimed to be providing personal care to his girlfriend, a Medicaid recipient, while she was in jail. The case came to light when the girlfriend got mad and turned her boyfriend in when her boyfriend would not use the fraud proceeds to bail her out of jail.
• Medicaid recipient who agreed to split the proceeds with a friend for being a no show was later jailed on other charges and continued to receive and split the fraud proceeds with her no show friend. The recipient was caught when she was turned in because she stopped certifying payment for the no show because she selected another friend to receive the no show money.
• Stepmother claimed jailed stepson as her personal assistant for over seven months while he was in jail.
• Medicaid recipient who was jailed for six months was able to get a furlough so that he could meet with his caseworker at his home to continue his purported eligibility. The recipient's friend was his alleged personal assistant and received payments from the State of Illinois for home care while her friend was in jail.
• Personal assistant was claimed to be providing in home personal care services to Illinois Medicaid recipient despite the fact that she was a full time resident of Texas.
• Personal assistant in Illinois claimed to be continuing to render home care services despite the fact that the Medicaid recipient had moved to the State of Texas.
• Medicaid recipient signed up for the program as a means of generating money to pay for an apartment for her daughter once the daughter got out of prison. Her daughter provided no services. Recipient did not need the services as she had been living with her boyfriend and taking care of him for years.
• Blind recipient whose son was paid for providing health care services had to care for herself. When she told her son that the money he was receiving from the State was intended to pay him for care he provided to his mother, his response was that the State wasn't paying him enough to provide her that care.
• Personal assistant continued to receive payments from the State for home health care despite the fact that the recipient was in a hospital and then in a nursing home.“We have seen dozens of instances in which the State of Illinois paid for ghost employees and fictitious services. Except for one case, payments from the State of Illinois did not keep anyone out of an institutional setting.” said Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
“In one case in which payments by the State of Illinois kept a Medicaid recipient out of a nursing home, the consequences for the Medicaid recipient were catastrophic. A family friend who herself was on disability became the personal assistant for the Medicaid recipient. This friend even invited the Medicaid recipient into her own home. However, she misappropriated her daughter's name and used a neighbor's name for purposes of obtaining and receiving personal assistant payments from the State of Illinois to care for this Medicaid recipient because she did not want to lose her own benefits. This personal assistant ignored serious and ongoing medical issues suffered by the recipient which should have led to hospitalization, but instead the personal assistant kept the recipient in the home and continued to receive personal assistant payments from the State. That recipient died in the personal assistant’s home as a result of malnutrition and sepsis due to neglect of medical, nutritional and hygienic care.” noted United States Attorney Wigginton.
Nationwide, one of the biggest fraud problems in the Medicaid program has been these personal assistant programs which represent the number one fraud complaint to state Medicaid fraud units. Especially vulnerable to fraud are programs, such as the one implemented in Illinois, that allows the Medicaid recipient to control the selection and payment of personal care attendants. In most cases, the personal care assistant is a relative or family friend, who often is a ghost employee. In a typical fraud scenario, the scam payments made by the State of Illinois are split between the Medicaid recipient and the ghost employee.
According to an Office of Inspector General report released in December, 2012, Medicaid costs for personal care services in 2011 totaled $12.7 billion, a thirty five percent increase since 2005. The U.S. Department of Labor projects that the employment of personal assistants and home health care workers will grow by 46 percent by 2018. U.S Department of Health and Human Services, Office of Inspector General: Personal Care Services, Trends, Vulnerabilities, and Recommendations for Improvement, OIG-12-12-01 (November 2012). Home personal care is one of the fastest growing job categories in the country. However, the OIG’s report points to numerous problems in Medicaid personal care services that leave it vulnerable to improper payments, abuse, and fraud, including lack of training standards, uneven oversight of services provided, and failure to implement prepayment controls to prevent improper or fraudulent payments.
A number of these problems can be seen in Illinois’ Home Services program. Unlike the majority of states, Illinois has no mandatory training requirements for its personal assistants. The State of Illinois sets wages and pays the personal assistants directly, yet does not require them to receive any instruction or education concerning their obligations as caregivers or as paid providers of Medicaid services. Also unlike most other states, Illinois also has no formal mechanism to supervise the work of the personal assistants it pays and ensure that the services it pays for are actually being rendered. U.S. Department of Health and Human Services, Office of Inspector General: States' Requirements for Medicaid-Funded Personal Care Service Attendants, OEI-07-05-000250 (December 2006).
Like only a handful of States, the State of Illinois has a collective bargaining agreement with the personal assistants selected by its Medicaid recipients. The Service Employees International Union is the exclusive representative of the personal assistants. Illinois withholds union dues from the payments it makes to the personal assistants.
Under recent collective bargaining agreements with the Service Employees International Union, the Union has been paid $2 million annually by the State to conduct a voluntary training program for Personal Assistants. While the Union developed and offers training, the investigation has shown that it is attended by almost no one in the Southern District of Illinois and has been of no practical benefit in deterring fraud or insuring that services are performed properly.
While the stated purpose of the program is to keep Medicaid recipients in their home and out of more costly institutional settings, prosecutions to date have shown an essential failure to achieve these stated objectives. Rather than assisting beneficiaries in legitimate need of care, the Medicaid agency in numerous instances is allowing the Home Services program to be exploited by unscrupulous individuals who believe that personal care services are an easy target for fraud.
Prison Camp Inmate Pleads Guilty to Escaping While on Transfer Between FacilitiesRead the Press Release
David J. Pederson, 55, an inmate at the Federal Prison Camp at Marion, Illinois, pled guilty today in United States District Court in Benton to an indictment charging him with escaping from custody while on an unescorted transfer between that facility and one in Council Bluffs, Iowa, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment, returned by a Federal Grand Jury on May 9th, alleged that the escape offense occurred on March 26, 2013.
After escaping, Pederson obtained a realistic looking air pistol and car-jacked two separate vehicles in Mt. Vernon, Illinois. He took a total of four individuals hostage during the car-jackings, including two women and two children. He was arrested with three of the hostages in Nashville, Illinois. On May 7, 2013, Pederson pled guilty in Jefferson County Circuit Court to charges relating to the car-jackings and was sentenced to a 20 year term of imprisonment in the Illinois Department of Corrections.
Sentencing on the escape offense was set for November 1, 2013, at 10:00 a.m. at the United States District Courthouse in Benton. At that time, Pederson faces an additional 5 years’ imprisonment, a $250,000 fine, and 3 years of supervised release to follow his incarceration.
Pederson was returned to the custody of the Illinois Department of Corrections to await his federal sentencing.
The case was investigated by the United States Marshal’s Service and the Mt. Vernon Police Department.
The case is being prosecuted by Assistant United States Attorney James M. Cutchin.
Prior Sex Offender Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
ALBUQUERQUE – Chad F. Summers, 40, of Albuquerque, N.M., pleaded guilty this morning to receipt of a visual depiction of minors engaged in sexually explicit conduct. Under the terms of his plea agreement, Summers will be sentenced to 15 years in federal prison followed by a lifetime of supervised release. Summers also will be required to register as a sex offender. The guilty plea was announced by U.S. Attorney Kenneth J. Gonzales, Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) in El Paso, Texas, Chief Robert W. Shilling of the New Mexico State Police (NMSP), and Chief Ray Schultz of the Albuquerque Police Department (APD).
Summers was arrested on Feb. 12, 2013, on a criminal complaint alleging that he received and possessed child pornography in Bernalillo County, N.M., between Aug. 2012 and Feb. 2013. The complaint also charged Summers with unlawfully possessing a firearm on Feb. 12, 2013. At the time, Summers was prohibited from possessing firearms or ammunition because he previously had been convicted of child pornography offenses in an Oregon state court. On March 5, 2013, Summers was indicted and charged with three counts of receipt of child pornography, one count of possession of child pornography, and being a felon in possession of a firearm.
During today’s hearing, Summers entered a guilty plea to Count 1 of the indictment, charging him with receipt of child pornography. In his plea agreement, Summers acknowledged that HSI, NMSP and APD executed a search warrant at his residence on Feb. 12, 2013 and seized computers and computer-related media. The search warrant was issued based on an undercover investigation by the NMSP that began in Oct. 2012, and targeted individuals who possessed, received and distributed child pornography. The investigation revealed that an IP Address which was subscribed to Summers was being used to offer child pornography images and videos through a peer-to-peer file-sharing program.
Summers acknowledged voluntarily participating in a recorded interview on Feb. 12, 2013, during which he admitted downloading child pornography images of preteens. He also admitted having a prior conviction for child pornography offenses from Oregon. In his plea agreement, Summers acknowledged that a forensic examination of his computers and computer-media uncovered more than 1600 child pornography images and videos.
Summers faced the enhanced penalty of a mandatory minimum 15 year prison sentence because of his prior child pornography conviction. Summers remains in federal custody pending his sentencing hearing, which has yet to be scheduled. Pursuant to his plea agreement, Summers will be required to forfeit his computers, computer-media and firearm.
This case was investigated by the Albuquerque office of HSI, NMSP and APD and is being prosecuted by Assistant U.S. Attorney Charlyn E. Rees. Assistant U.S. Attorney Cynthia L. Weisman is handling the related forfeiture proceedings.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Prior Sex Offender Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
ALBUQUERQUE – Brian Williams, 21, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., pleaded guilty this morning to a federal assault charge under a plea agreement with the U.S. Attorney’s Office.
Williams was arrested on Jan. 13, 2013, based on a criminal complaint charging him with assault with a dangerous weapon after he brandished a firearm at and threatened two car hops who were working at a Sonic Restaurant in Shiprock.
During this morning’s proceedings, Williams admitted assaulting two women at the Sonic Restaurant in Shiprock on Jan. 12, 2013, by pointing a semi-automatic pistol at them and telling them to “watch out” because he would be back. According to his plea agreement, Williams assaulted the victims because he was upset over his beverage order.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety and is being prosecuted by Assistant U.S. Attorney Kyle T. Nayback
Williams has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Williams faces a maximum possible penalty of ten years in prison.Press Conference to Follow Sentencing in UNITED STATES V. PAUL DANIEL BOTTOMLEYRead the Press Release
July 12, 2013, at 1:00 p.m. (MDT) in Missoula, Montana
United States Attorney for the District of Montana, Michael W. Cotter, and John Roth, Director of the Food and Drug Administration, Office of Criminal Investigation, will hold a press conference on July 12, 2013, at 1:00 p.m. (MDT) following the sentencing in United States v. Paul Daniel Bottomley, CR13-04-BU-DLC. The press conference will be held at the U.S. Attorney's Office located at 105 E. Pine Street, 2nd floor in Missoula, Montana.
The purpose of the press conference will be to comment on the case, the significant forfeiture involved in the case, and the continued efforts of the Food and Drug Administration, Office of Criminal Investigation to safe guard Americans from misbranded, adulterated and counterfeit pharmaceuticals from foreign countries.
Pottawattamie County Resident Sentenced for Methamphetamine DistributionRead the Press Release
COUNCIL BLUFFS, IA- On July 11, 2013, Douglas John Howard, a 50 year-old resident of Pottawattamie County, Iowa, was sentenced by Chief Judge James E. Gritzner to 121 months imprisonment for possession with intent to distribute methamphetamine, announced United States Attorney Nicholas A. Klinefeldt. Judge Gritzner also ordered Howard to serve a four year term of supervised release following incarceration. Howard pled guilty on February 8, 2013, to possession of methamphetamine with intent to distribute.
The conviction resulted from a joint law enforcement investigation into the distribution of methamphetamine in the Council Bluffs, Iowa, which began with a traffic stop in June of 2012 where Howard was found to be in possession of methamphetamine, digital scales, plastic baggies and drug distribution notes. The investigation identified Howard as a person responsible for regularly distributing methamphetamine in Council Bluffs, along with rural areas in Pottawattamie and Mills Counties in Iowa.
The investigation was conducted by the Carter Lake Police Department, South West Iowa Narcotics Task Force, and the Drug Enforcement Administration, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Philadelphia La Cosa Nostra Underboss Sentenced to<br /> 188 Months in PrisonRead the Press Release
Joseph Massimino was sentenced today to serve 188 months in prison for his participation in a racketeering conspiracy involving extortion, loan sharking and illegal gambling, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania and Edward J. Hanko, Special Agent in Charge of the FBI’s Philadelphia Division.
Massimino, 63, of Philadelphia, was sentenced by U.S. District Judge Eduardo C. Robreno in the Eastern District of Pennsylvania. In addition to his prison term, Massimino was sentenced to serve three years of supervised release.
On Feb. 5, 2013, after a four-month trial, a jury convicted Massimino of conspiring to conduct and participate in the affairs of the Philadelphia La Cosa Nostra Family through a pattern of racketeering activity. The evidence at trial proved that, in furtherance of the racketeering conspiracy, Massimino, as a “made” member and underboss, extorted “street tax” payments from a bookmaker, used threats of violence against debtors to collect loan sharking payments and forced the owners of a vending company to sell the portion of their business related to the operation of illegal video poker machines. In addition, Massimino ran an illegal electronic gambling device business for the mob, providing video poker machines and other gambling devices for bars, restaurants, convenience stores, coffee shops and other locations in Philadelphia and its suburbs. In one of these locations, Massimino also operated an illegal sports bookmaking business.
The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Frank A. Labor III and Suzanne B. Ercole of the Eastern District of Pennsylvania. Valuable prosecutorial assistance was provided by the Pennsylvania Office of the Attorney General.
The case is being investigated by the FBI, Internal Revenue Service-Criminal Investigation, Pennsylvania State Police, New Jersey State Police, Philadelphia Police Department, U.S. Department of Labor’s Office of Inspector General Office of Labor Racketeering and Fraud Investigations, and the U.S. Department of Labor’s Employee Benefits Security Administration. Additional assistance was provided by the New Jersey Department of Corrections.O’Fallon Man Indicted on Drug, Gun ChargesRead the Press Release
Matthew G. Patterson, 23, of O’Fallon, Illinois, was indicted by a federal grand jury sitting in East St. Louis on June 18, 2013, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. The Grand Jury charged Patterson with Unlawful Possession with the Intent to Distribute Marijuana (Count 1) and Possession of a Firearm In Furtherance of a Drug Trafficking Offense (Count 2). The indictment, which was originally suppressed, but has since been unsealed, also seeks the forfeiture of two firearms along with “all property constituting, or derived from any proceeds” obtained as a result of the offense charged in Count 1. Upon conviction, Count 1 carries a possible penalty of five (5) years imprisonment, a $250,000 fine, at least two (2) years of supervised release, and a $100 special assessment; Count 2 carries a possible penalty of a minimum of five (5) years imprisonment, consecutive to any sentence imposed on Count 1, a $250,000 fine, not more than five (5) years of supervised release, and a $100 special assessment. Trial is this matter is currently scheduled for September 16, in United States District Court in East St. Louis.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
Evidence for this indictment was gathered during an investigation conducted by the United States Postal Inspection Service and the Metropolitan Enforcement Group of Southwestern Illinois (MEGSI).
This case has been assigned to Assistant United States Attorney Randy G. Massey for prosecution.
Owner of Woodbridge Real Estate Company Pleads Guilty to $7 Million Mortgage Related Bank FraudRead the Press Release
ALEXANDRIA, Va. – Mark R. Dain, 33, of Fairfax, Va., pleaded guilty today to conspiracy to commit bank fraud and admitted responsibility for fraudulent loan applications involving 22 different properties, which resulted in more than $7 million in losses to various federally insured financial institutions. Dain also agreed to the entry of a restitution order and personal money judgment for the full amount of the financial institutions’ losses.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Gary R. Barksdale, Postal Inspector in Charge of the U.S. Postal Inspection Service Washington Division, made the announcement after the plea was accepted late this afternoon by United States District Judge T.S. Ellis, III.
Dain pleaded guilty to a criminal information charging him with conspiracy to commit bank fraud. Dain faces a maximum penalty of 30 years in prison when he is sentenced on October 4, 2013.
In a statement of facts filed with the plea agreement, Dain admitted that between 2006 and 2008, he was employed by, and part owner of, a Woodbridge, Virginia company which specialized in the marketing of undeveloped, sub-divided lots located in North and South Carolina. The company marketed these lots to purchasers in Northern Virginia and assisted the buyers in their efforts to obtain financing. Dain participated in a scheme to falsify loan applications by various means, to include: the inflation of gross monthly income, the value and/or the existence of real estate owned by the applicant, and the value of the liquid assets held by the loan applicant.
This case was investigated by the FBI’s Washington Field Office and the United States Postal Inspection Service. Assistant United States Attorney Mark D. Lytle is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Operation ‘Wild Web’ Targets Illegal, Online Sale of Endangered Species and Parts from Protected AnimalsRead the Press Release
LOS ANGELES – An undercover operation dubbed “Wild Web” today resulted in charges against five Southern California residents who are accused of selling endangered species and animal parts, including pelts taken from wild cats, through online auction sites such as Craigslist.
The charges contained in four criminal cases filed in United States District Court in Los Angeles stem from an investigation coordinated by the United States Fish & Wildlife Service and which involved investigators and prosecutors across the United States and in three Southeast Asian countries.
Operation Wild Web was designed to disrupt the trafficking of illegal wildlife on the Internet. Across the United States, the Wild Web task force conducted more than 150 undercover purchases of endangered wildlife over the course of two weeks last August (see: http://www.fws.gov/home/newsroom/operationwildwebNR07112013.html). Investigators posing as buyers focused on endangered or protected wildlife, as well as invasive species that threaten the native fish species in the United States.
The four cases filed in Los Angeles this morning charge five defendants with violations of federal environmental laws. The defendants charged are:
Hanna Karim, 44, and his wife, Margarita Licomitros, 36, both of Huntington Beach, who are accused of selling a Sumatran Tiger skin for $8,000 after the item was advertised on Craigslist. Karim and Licomitros are charged with offering an endangered species for sale, and, if convicted, each could be sent to federal prison for up to one year. Tigers are critically endangered throughout the world, with estimates that there are less than 500 Sumatran tigers remaining in the wild. This case is being prosecuted by Assistant United States Attorney Rupa S. Goswami.
Rene De La Peza, 42, of Hacienda Heights, who is accused of selling a jaguar skin for $15,000 after advertising the item of Craigslist. De La Peza is charged with offering an endangered species for sale and, if convicted, could be sent to federal prison for up to one year. Jaguars, the largest cat found in the Americas, have been listed as endangered for 40 years. This case is being prosecuted by Assistant United States Attorney Rupa S. Goswami.
Michael Roy McIntire, 59, of Encino, who is accused of selling three migratory bird mounts in violation of the Migratory Bird Treaty Act of 1918. If convicted, McIntire would face up to six months in prison. All migratory birds – such as the birds involved in this case: a canvasback, a cinnamon teal and a mallard – are protected under treaties between the United States, Russia, Canada and Mexico, and even legally hunted birds cannot be sold. This case is being prosecuted by Assistant United States Attorney Amanda Bettinelli.
Rodrigo Macedo, 29, of Hesperia, who is accused selling two Western Scrub Jays in violation of the Migratory Bird Treaty Act, a charge that carries a maximum penalty of six months in federal prison. This case is being prosecuted by Assistant United States Attorney Amanda Bettinelli.
As part of Operation Wild Web, state and federal prosecutors across the nation have filed well over 100 criminal cases, with most of the cases being filed in California, Texas and Florida. In addition to the animals and animal parts involved in the cases filed in federal court in Los Angeles, Operation Wild Web led to cases involving the illegal sale of a bear skin and a walking catfish that were filed by the Los Angeles County District Attorney’s Office. Other cases resulting from Operation Wild Web – involving native wildlife and invasive species, such as live piranha – were recently filed by the Orange County District Attorney’s Office, the Santa Barbara County District Attorney’s Office, and the Los Angeles City Attorney’s Office. Seven cases were charged in Thailand and Indonesia where animals and parts of animals – such as leopards, tigers, Great Hornbills and Javan eagles – were sold through the Internet.
Law enforcement authorities were assisted by several non-profit organizations that donated resources to the operation, including the Humane Society of the United States, the International Fund for Animal Welfare, and the Freeland Foundation. The Association of Southeast Asian Nations – Wildlife Enforcement Network organized the law enforcement efforts in Thailand, Indonesia and Singapore, where it is working to stop the wildlife trade in source countries in Southeast Asia.
Release No. 13-093
Operation "Dixie Crystal" Nets 30 Methamphetamine Traffickers in Ashe and Surrounding CountiesRead the Press Release
One Remaining Fugitive Sought – Reward Offered
CHARLOTTE, N.C. – Thirty men and women have been charged to date with methamphetamine trafficking and firearms offenses as a result of Operation “Dixie Crystal,” announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. To date, 17 defendants have pleaded guilty to the charges.
Operation “Dixie Crystal” is a joint drug task force operation which began in 2012, targeting significant methamphetamine traffickers in Ashe, Allegheny, Caldwell, Watauga, Wilkes Counties, and Johnson County in Tennessee.
“The success of this investigation speaks of the continued dedication of our local, state and federal law enforcement partners in targeting and dismantling meth distribution rings that profit by spreading their poison in our communities. Strong partnerships such as this one underscore the power of our combined forces and demonstrate our collective impact on the war against meth,” said U.S. Attorney Tompkins.
According to filed court documents and court proceedings, beginning in 2003 and continuing to the present, the co-conspirators have sold more than 200 pounds of methamphetamine, with a street value of more than $4,000,000. Over the course of the investigation, law enforcement seized approximately 30 firearms, five vehicles, 20 pounds of methamphetamine, and $150,000 in U.S. currency.
Federal criminal indictments unsealed today in U.S. District Court have charged the following 10 defendants with federal drug charges and related offenses:
1. Larry Mitchell Snyder, 59, of Trade, Tenn., is charged with a drug trafficking charge that carries a mandatory minimum sentence of 10 years to life. He was indicted by a federal grand jury on June 18, 2013. Snyder is currently a fugitive in the case and a warrant for his arrest remains outstanding. A reward is available for information leading to Snyder’s arrest. Tips can be called in to 1-866-DHS-2-ICE (1-866-347-2423). All tipsters will remain anonymous.
2. Earl Butler Potter, 55, of Todd, N.C., is charged with a drug trafficking offense that carries a mandatory minimum sentence of 10 years to life in prison. He has been in custody since his arrest on July 11, 2012. He was indicted by a federal grand jury on June 18, 2013.
3. Stephanie Lynn Shatley, 31, of Lansing, N.C., is charged with a drug trafficking offense that carries a mandatory minimum sentence of 10 years to life in prison. Shatley was indicted by a federal grand jury on June 18, 2013. She is currently in state custody.
4. Jared William Pardue, 33, of Zionville, N.C., is charged with a drug trafficking offense that carries a mandatory minimum sentence of 10 years to life in prison. Pardue was indicted by a federal grand jury on June 18, 2013. He has been in federal custody on June 25, 2013.
5. Tawana M. Sparks, 31, of Hudson, N.C., is charged with a drug trafficking offense that carries a mandatory minimum sentence of 10 years to life in prison. She was indicted by a federal grand jury on June 18, 2013 and has been in federal custody since July 11, 2013.
6. Courtney Wayne Patterson, 28, of Todd, is charged with drug trafficking and firearms offenses that carry a mandatory minimum sentence of 15 years to life in prison. He has been in custody since his arrest on July 11, 2012, and was indicted by a federal grand jury on June 18, 2013.
7. Deborah Phillips Lewis, 36, of Todd, is charged with drug trafficking and firearms offenses which carry a mandatory minimum sentence of 15 years to life in prison. She has been in custody since her arrest on July 11, 2012, and was indicted by a federal grand jury on June 18, 2013.
8. James Foy Parsons, 45, of West Jefferson, N.C., is charged with a drug trafficking offense that carries a mandatory minimum sentence of 10 years to life. He has been in custody since his arrest on July 11, 2012. He was indicted by a federal grand jury on June 18, 2013.
9. Tina Ann Wheeler (a/k/a Tina Ann Miller), 38, of Crumpler, N.C., is charged with a drug trafficking offense that carries a mandatory minimum sentence of 10 years to life in prison. She has been in custody since her arrest on July 11, 2012. She was indicted by a federal grand jury on June 18, 2013.
10. Ricky Allen Latham, 32, of Creston, N.C., is charged with a drug trafficking offense that carries a mandatory minimum sentence of 10 years to life in prison. He was indicted by a federal grand jury on June 18, 2013, and is not yet in custody.
Three additional defendants facing federal drug charges are currently scheduled for trial:
• Mauricio “Mario” Baltazar, 20, of Lake City, Ga., is charged with four counts of drug trafficking and firearms offenses that carry a mandatory minimum sentence of 40 years to life in prison. Baltazar has been in custody since his arrest on April 23, 2013, and was indicted by a federal grand jury on May 22, 2013. His trial is set for July 2013.
• Kenneth Herman Bennett, 50, of West Jefferson, is charged with a drug trafficking offense that carries a mandatory minimum sentence of 20 years to life in prison. He has been in custody since his arrest on April 20, 2013. He was indicted by a federal grand jury on May 22, 2013. Bannett’s trial is set for July 2013.
• Martin Martinez Saldana, 43, of West Jefferson, is charged with drug trafficking and firearms offenses that carry a mandatory minimum sentence of 25 years to life in prison. Saldana has been in custody since his arrest and indictment on December 13, 2012, and has a September 2013 trial date.
The following 17 defendants have entered guilty pleas and are awaiting sentencing:
1. Jason Michael Benfield, 33, of Laurel Springs, N.C., pleaded guilty on June 6, 2013, to drug trafficking and firearm offenses that carry a mandatory minimum sentence of 15 years to life in prison. Benfield has been in custody since his arrest on March 22, 2013.
2. Ernest Monroe Parlier, Jr., 28, of Crumpler, pleaded guilty on May 16, 2013, to drug trafficking and firearm offenses that carry a mandatory minimum sentence of 15 years to life in prison. Parlier has been in custody since his arrest on March 21, 2013.
3. Jeremy Keith Nunnenkamp, 40, of North Wilkesboro, N.C., pleaded guilty on June 5, 2013, to a drug trafficking charge that carries a mandatory minimum sentence of 10 years to life in prison. He has been in custody since his arrest on April 20, 2013.
4. Jeffrey Dale Watson, 41, of Fleetwood, N.C., has agreed to plead guilty to a drug trafficking charge that carries a mandatory minimum sentence of 10 years to life in prison. Watson has been released on bond. A plea hearing date has not been set yet.
5. James Thomas Hawkins, 39, of Laurel Springs, N.C., has agreed to plead guilty to a drug trafficking charge which carries a mandatory minimum sentence of 10 years to life in prison. Hawkins has been released on bond since April 23, 2013. A plea hearing date has not been set yet.
6. Chad Morgan Yates, 38, of Chattahoochee Hills, Ga., pleaded guilty on May 17, 2013, to a drug trafficking charge which carries a mandatory minimum sentence of 10 years to life in prison. He is currently in federal custody.
7. Christy Lee Latham, 36, of Warrensville, N.C., pleaded guilty on June 19, 2013, to a drug trafficking charge that carries a mandatory minimum sentence of 10 years to life in prison. She has been in custody since entry of her guilty plea.
8. Melanie Virginia Osley, 37, of Chattahoochie Hills, Tenn., pleaded guilty on June 11, 2013, to a drug trafficking charge that carries a mandatory minimum sentence of 10 years to life in prison. Osley has been in custody on the federal charges since her arrest on March 21, 2013.
9. Luis Enrique Garcia, 46, of Mexico, pleaded guilty on February 4, 2013, to drug trafficking charge that carries a mandatory minimum sentence of 10 years to life in prison. Garcia has been in custody since his arrest on the federal charges on December 20, 2012.
10. Jose Francisco Jimenez Pina, 46, of Mexico, pleaded guilty on February 20, 2013, to a drug trafficking charge that carries a mandatory minimum sentence of 10 years to life in prison. He has been in custody since his arrest on the federal charges on December 13, 2012.
11. Jose Humberto Jimenez Pina, 25, of Mexico, pleaded guilty on February 20, 2013, to a drug trafficking charge that carries a mandatory minimum sentence of 10 years to life in prison. He has been in custody since his arrest on the federal charges on December 13, 2012.
12. Bobby Giles Shore, 59, of Lansing, pleaded guilty on February 22, 2013, to a drug trafficking charge that carries a mandatory minimum sentence of 10 years to life in prison. Shore has been in custody since his arrest on the federal charges on December 13, 2012.
13. Danny Eller, 53, of West Jefferson, pleaded guilty on April 16, 2013, to a drug trafficking charge that carries a mandatory minimum sentence of 10 years to life in prison. Eller has been in custody since his arrest on the federal charges on December 13, 2012.
14. Cristie Aldridge Dollar, 45, of Foscoe, N.C., pleaded guilty on April 3, 2013, to a drug trafficking charge that carries a mandatory minimum sentence of 10 years to life in prison. She has been in custody since her arrest on the federal charges on December 19, 2012.
15. Pamela Ann Corum, 31, of Zionville, pleaded guilty on February 13, 2013, to a drug trafficking charge that carries a mandatory minimum sentence of 10 years to life in prison. She has been in custody since her arrest on the federal charges on December 19, 2012.
16. Tammy Wynette Woody, 43, of West Jefferson, pleaded guilty on May 15, 2013, to a bill of information charging her with a single drug trafficking offense which carries a mandatory minimum sentence of 5 years to 40 years in prison. Woody has been in custody since her arrest on April 22, 2013.
17. Javier Sanchez Chavez, 32, of Mexico, pleaded guilty on March 21, 2013, to a charge of misprision of a felony, which carries a maximum sentence of 3 years in prison. He has been in custody since his arrest on the federal charges on December 20, 2012.
In making today’s announcement, U.S. Attorney Tompkins recognized the following federal, state and local agencies which partnered in Operation Dixie Crystal, and thanked them for their continued cooperation and support:
Brock D. Nicholson, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Georgia and the Carolinas; Harry S. Sommers, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office; Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; Greg McLeod, Director of the North Carolina State Bureau of Investigation (NC SBI); Sheriff James Williams of the Ashe County Sheriff’s Office; Sheriff David Edwards of the Allegheny County Sheriff’s Office; Chief Dana Crawford of the Boone Police Department; Sheriff Alan C. Jones of the Caldwell County Sheriff’s Office; Sheriff Len D. Hagaman of the Watauga County Sheriff’s Office; Sheriff Chris Shew of the Wilkes County Sheriff’s Office; and Sheriff Mike Reece of the Johnson County Sheriff’s Office in Tennessee.
The investigation is ongoing. The case is being prosecuted by Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
Norfolk Man Sentenced to 327 Months in Prison for Production of Child PornographyRead the Press Release
NORFOLK, Va. – Michael Thomas Sechrist, 45, of Norfolk, Va., was sentenced today to 327months in prison, followed by 300 months of supervised release, for production of child pornography.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, made the announcement after sentencing by United States District Judge Arenda L. Wright Allen.
Sechrist pleaded guilty to one count of production of child pornography on April 3, 2013. According to court documents and other public information, Sechrist was initially identified when a visitor to his home found a surreptitiously placed thumb drive that was found to contain images of minors engaging in sexually explicit conduct. While some of those images came from the Internet, others were produced by Sechrist of a prepubescent female minor in the Tidewater area.
This case was investigated by the Department of Homeland Security Investigations and the Norfolk Police Department. Assistant United States Attorney Elizabeth M. Yusi prosecuted the case on behalf of the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.New Jersey Check Cashing Company Ordered to Pay More Than $1 Million, on Probation After Admitting Failure to File Currency Transaction ReportsRead the Press Release
CAMDEN, N.J. – GB Check Cashing LLC, a check cashing company licensed in New Jersey, pleaded guilty today and was ordered to forfeit over $1 million for failing to file Currency Transaction Reports as required by law, U.S. Attorney Paul J. Fishman announced.
The co-owners of GB Check Cashing LLC, Dalwinder S. Ghuman, 45, and Talvinder S. Ghuman, 53, both of Mt. Laurel, N.J., entered the plea on behalf of GB Check Cashing before U.S. District Judge Robert B. Kluger in Camden federal court. Following the guilty plea, Judge Kluger sentenced GB Check Cashing to one year of probation and ordered the company to forfeit $1,086,894.
According to documents filed in this case and statements made in court:
GB Check Cashing is a money service business the Ghumans, brothers, have co-owned and operated since 2003. The business has four storefronts, all of which are located in New Jersey: in Pennsauken, Delran, Carteret and East Windsor. Under federal law, such companies are obligated to file a Currency Transaction Report (CTR) whenever they are involved in a transaction for the payment, receipt or transfer of more than $10,000.
From September 2010 through June 2011, an individual referred to in court documents as “CC,” who operated a check cashing business in New Jersey without the appropriate license, brought several checks from customers of that business to GB Check Cashing and exchanged them for cash, less a one percent fee. Because the value of those checks was usually greater than $10,000, so was the amount of cash CC received. GB Check Cashing documented each transaction to make it appear as though CC’s customers went directly to GB Check Cashing to cash their checks.
In all, GB Check Cashing cashed approximately $1,148,247.63 of CC’s customers’ checks, paying approximately $1,086,894.33 to CC in increments greater than $10,000. GB Check Cashing did not file a CTR for any of those transactions.
U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees, with the investigation.
The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
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Defense counsel: Lawrence S. Lustberg Esq., Newark, N.J.
Henry Klingeman Esq., NewarkGB Check Cashing Information
New Haven Man Pleads Guilty to Federal Gun ChargeRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that RUFUS SPEARMAN, 36, of New Haven, pleaded guilty today before United States Magistrate Judge Donna F. Martinez in Hartford to possession of a firearm by a previously convicted felon.
According to court documents and statements made in court, during a police pursuit on November 10, 2012, SPEARMAN discarded a loaded .50 caliber semi-automatic pistol underneath the front porch of a residence on Clover Place in New Haven. He was apprehended a short time later and the firearm was recovered. A search of SPEARMAN’s person also revealed quantities of marijuana and Methylone, also known as “bath salts.”
SPEARMAN’s criminal history includes state felony convictions for sale of hallucinogen/narcotics, possession of a controlled substance with intent to sell, arson and conspiracy to commit arson in the first degree.
SPEARMAN has been detained since his arrest on November 10, 2012. He is scheduled to be sentenced by United States District Judge Robert N. Chatigny on October 4, 2013, at which time he faces a maximum term of imprisonment of 10 years.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven Police Department. The case is being prosecuted by Assistant United States Attorney Anthony E. Kaplan.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Multi-State Partnership Targets Violent CrimeRead the Press Release
159 Individuals Charged - 267 Firearms SeizedSt. Louis, MO/EAST ST. LOUIS, IL - The results of a first of its kind partnership targeting violent crime in St. Louis, MO and East St. Louis, IL was unveiled this morning during a joint press conference held by U.S. Attorney for the Eastern District of Missouri Richard Callahan, U.S. Attorney for the Southern District of Illinois Stephen R. Wigginton, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Acting Director B. Todd Jones, City of St. Louis Mayor Francis G. Slay and St. Louis Metropolitan Police Chief D. Samuel Dotson III.
This initiative, dubbed the Violent Crime Reduction Partnership (VCRP), resulted in the indictments of 159 individuals in both Missouri and Illinois. The defendants have been charged with a variety of federal and state firearms, narcotics and robbery offenses.
Beginning in April 2013, more than 80 ATF personnel from throughout the country were working in the cities of St. Louis and East St. Louis. To combat the high rate of violent crime in these cities, the agents worked together with the U.S. Attorney’s Offices in the Eastern District of Missouri and the Southern District of Illinois, the Illinois State Police, the St. Louis Metropolitan Police Department and other federal, state and local partners. The initiative utilized multiple investigative techniques, including undercover operations, historical investigation and prosecutions of multi-convicted felons in possession of firearms.
As a result of this effort, a total of 267 firearms, more than 25 ounces of methamphetamine, more than 3 pounds of crack cocaine/cocaine, more than 7 pounds of marijuana and more than 1½ pounds of heroin were purchased or seized. On July 10, 2013, over 150 law enforcement officers searched for the remaining defendants who were not already in custody. Those not arrested at the time of this release are now considered fugitives.
Of the 159 defendants, 99 are being prosecuted by the United States Attorney’s Office for the Eastern District of Missouri, 47 are being prosecuted by the United States Attorney’s Office for the Southern District of Illinois, 11 are being prosecuted by the St. Louis City Circuit Attorney’s Office, 1 is being prosecuted by the St. Clair County State’s Attorney’s Office and 1 is being prosecuted by the Madison County State's Attorney's Office. As a whole, the defendants have been the subjects of 1,718 felony arrests and 78% of the defendants are previously convicted felons.
"Statistically, East St. Louis, Illinois, is the most violent city in America. The law-abiding citizens of East St. Louis, not to mention all of the law-biding citizens of all of Southern Illinois, are grateful for the very intense and dangerous work spearheaded by ATF, and done in conjunction with ATF’s federal and local law enforcement partners, in this intense surge of enforcement, to seek out, disrupt and prosecute those violent and dangerous offenders who make life intolerable for the rest of us," said Stephen R. Wigginton, the United States Attorney for the Southern District of Illinois. "Attorney General Holder, in setting the Department of Justice’s main priorities, has said, ‘We will protect Americans from violent crime.’ The promise made in that priority has been fulfilled in these law enforcement actions taken by the brave and dedicated men and women of the ATF and their partners,” added United States Attorney Wigginton.
"Today’s work is by no means finished. ATF will continue to work with our partners to identify and target those responsible for the violence that has plagued St. Louis and East St. Louis. As we take these individuals off the streets, we in law enforcement are sending a powerful message that the violence these individuals bring will not be tolerated,” said ATF Acting Director B. Todd Jones.
Mayor Francis Slay, City of St. Louis said, "This is one of the most significant law enforcement operations in our city in the last decade. It will result in less crime and less violence in our City. Its impact will be felt for some time to come. Our citizens owe a debt of gratitude to everyone involved, especially the law enforcement officers who risked their lives to get these guns off our streets and these dangerous criminals out of our neighborhoods."
"The successful results of this initiative prove that by creating partnerships within law enforcement and cracking down on violent crime, the streets of our cities are safer," said Chief Sam Dotson. "The next step is ensuring that these criminals are prosecuted and sentenced appropriately, sending a message to violent offenders that this behavior is not tolerated."
The VCRP’s core agencies are ATF, the St. Louis Metropolitan Police Department, the Illinois State Police, the Federal Bureau of Investigation (IL), the United States Attorney’s Office for the Eastern District of Missouri, the United States Attorney’s Office for the Southern District of Illinois, the St. Louis City Circuit Attorney’s Office and the St. Clair County (IL) State’s Attorney’s Office. The agencies that also participated in the VCRP are the Drug Enforcement Administration, the St. Louis County Police Department, the St Clair County (IL) Sheriff’s Department, Illinois Department of Corrections Probation and Parole and the United States Marshals Service. This arrest operation involved law enforcement officers from all of the investigating agencies, along with numerous other law enforcement agencies.
The Eastern District of Missouri cases are being prosecuted under the supervision of Assistant U.S. Attorney Antoinette Decker, Chief of the Violent Crimes Unit. The Southern District of Illinois cases are being prosecuted by Assistant U.S. Attorney Deirdre A. Durborow, Violent Crimes Chief; Kit R. Morrissey, Monica Stump, Ali Summers, Steven B. Clark, Daniel Kapsak and Special Assistant United States Attorneys Stephanie Richter and Neal Hong.
This is the ninth multi-month VCRP that ATF personnel have completed throughout the United States. This is the first VCRP that spanned two ATF Field Divisions and two U.S. Attorneys Offices.
These state and federal charges are allegations that a defendant has committed a crime. 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.
Contact Information:
Assistant U.S. Attorney Jim Porter
U.S. Attorney’s Office
Southern District of Illinois
(618) 628-3700Jan Diltz
Public Affairs Officer
U.S. Attorney’s Office
Eastern District of Missouri
(314) 539-7719Sr. Special Agent Thomas J. Ahern
Public Information Officer
ATF - Chicago Field Division
(312) 846-7228Special Agent Trista K. Frederick
Public Information Officer
ATF - Kansas City Field Division
(816) 559-0724
(916) 275-4039 (Cell)Mortgage Company Executive Charged in Fraud CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Steve Linick, Inspector General of the Federal Housing Finance Agency Office of Inspector General, announced the filing of a federal Information charging Patrick J. Mansell, 68, of Boca Raton, FL, Vice President of Coastal States Mortgage Corporation (Coastal) with conspiracy to commit wire fraud to defraud government sponsored entities, Fannie Mae and Freddie Mac.
According to the Information, from April 2007 through February 2012, in the Southern District of Florida, Coastal was a licensed mortgage brokerage whose primary business activity was the selling and servicing of mortgage loans for Freddie Mac and Fannie Mae. As alleged in the Information, Coastal processed payments and payoffs received from borrowers on behalf of Freddie Mac and Fannie Mae, according to the contractual agreements entered into between them. As further alleged in the Information, Coastal failed to remit some of the mortgage loan payoffs that it received from borrowers to Freddie Mac and Fannie Mae, resulting in a loss to Freddie Mac and Fannie Mae. This misappropriation was concealed by the regular submission of false financial reports by Coastal, via an internet portal, to Freddie Mac and Fannie Mae. If convicted, the defendant faces a statutory maximum penalty of five years’ incarceration, followed by a three year period of supervised release, a fine of up to $250,000 and restitution.
Mr. Ferrer commended the investigative efforts of the Federal Housing Finance Agency Office of the Inspector General. The case is being prosecuted by Assistant U.S. Attorney Thomas P. Lanigan.
An information is only an accusation, and defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
Mississippi Man Pleads Guilty to Abusive Sexual ContactRead the Press Release
Jackson, Miss – Gurdy Farmer, Jr., 25, of Choctaw, Mississippi, pled guilty in federal court today to abusive sexual contact of a minor, U.S. Attorney Gregory K. Davis announced. The offense occurred within the boundaries of the Tribal Lands of the Mississippi Band of Choctaw Indians.
Farmer will be sentenced by U.S. District Judge Henry T. Wingate on September 19, 2013, and faces a maximum penalty of two years in prison.
This case was investigated by the FBI and the Choctaw Police Department. It was prosecuted by Assistant U.S. Attorney Pat Lemon.
###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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