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9 July 2013
Buckhannon Resident Enters Plea to Possession of Firearms by an Alien Illegally in the United StatesRead the Press Release
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ELKINS, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II, announced that a 33 year old Buckhannon, West Virginia, resident entered a plea of guilty in United States District Court in Elkins on July 9, 2013, before Magistrate Judge John S. Kaull.
RODOLFO VILLAGOMEZ CORREA a/k/a “CHINO,” entered a plea of guilty to “Possession of Firearms by an Alien Illegally in the United States.” As part of his plea agreement, CORREA will abandon to the United States Department of Homeland Security all right, title, interest and claim to 16 firearms, a counterfeit Resident Alien Card, a counterfeit Permanent Resident Card, and other items seized from the defendant on July 25, 2012. CORREA faces up to 10 years imprisonment and a $250,000 fine. He was returned back to the custody of the State of West Virginia, where he has been charged by criminal complaint with murder.
This case was prosecuted by Assistant United States Attorney Stephen D. Warner and investigated by U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE/HSI), the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Forest Service.
Brantley County Man Sentenced to over 21 Years in Prison for Drug Trafficking and Insurance FraudRead the Press Release
BRUNSWICK, GA – Gerald Roberson, 46, of Nahunta, Georgia, was sentenced today by United States Chief District Judge Lisa Godbey Wood to 262 months in prison for his roles in a drug trafficking conspiracy and an insurance fraud scheme.
During the guilty plea and sentencing hearings, the evidence showed that Roberson was a leader of a conspiracy that stretched from Georgia, to Texas, to Mexico, and involved over 1,000 pounds of marijuana, over 50 pounds of methamphetamine, and an untold number of prescription drugs. In addition, Roberson helped commit an arson in an effort to defraud insurance companies of over $58,000 in claims.
Chief Judge Wood earlier sentenced two additional Brantley County residents for their roles in the criminal conduct. Harold Lee Ragland, 48, was sentenced on July 2, 2013, to 18 years in prison for his role in the drug trafficking conspiracy and insurance fraud scheme. Decia Roberson, 45, was sentenced to 44 months for her role in the drug trafficking conspiracy. Decia Roberson is the ex-wife of Gerald Roberson.
The case was investigated by the DEA, the GBI, and the Brantley County Sheriff’s Office. Assistant U.S. Attorney Carlton Bourne prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Bedford County Man Indicted on Firearms ViolationRead the Press Release
Prosecution is part of Project Safe Neighborhoods Initiative
JOHNSTOWN, Pa. - A resident of Schellsburg, Pa. has been indicted by a federal grand jury in Pittsburgh on a charge of possession of an unregistered destructive device, United States Attorney David J. Hickton announced today.
The indictment named Stephen Edward Weaver, 55, as the sole defendant.
According to the indictment presented to the court, on June 5, 2011, Weaver was in possession of unregistered destructive devices, specifically two pipe bombs.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Pennsylvania State Police, Troop G Barracks, Bedford Barracks and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the indictment in this case.
According to Mr. Hickton, Weaver is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bank Employee Among a Dozen Indicted for Stealing $650,000Read the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a UMB Bank employee along with 11 friends and family members has been indicted by a federal grand jury for embezzling more than $650,000 in a bank fraud conspiracy.
Lisa L. Taylor, 53, Kara L. Williams, 32, Shameeka N. Whitehead, 30, Rodney C. Austin, 48, Johnnie L. Coleman, 51, Roshana A. Franklin, 21, Antonio O. Malone, 25, and Ralph Broadus, 58, all of Kansas City, Mo., William D. Moore, 23, of Grandview, Mo., Stephen A. Combs, 26, and Geoffrey N. King, 29, both of Olathe, Kan., and Lakisha S. Weathers, 28, of Springfield, Mo., were charged in a 44-count indictment that was returned under seal by a federal grand jury in Kansas City, Mo., on June 20, 2013. That indictment was unsealed and made public upon the arrests and initial court appearances of several defendants on Monday, July 8, 2013.
The federal indictment alleges that Taylor, who was employed by UMB Bank from May 2006 until October 2010, used her position to generate 377 fraudulent bank checks totaling $650,659, payable to her co-defendants and others in a fraud scheme that lasted virtually the entire time she worked at the bank.
According to the indictment, Taylor was employed at UMB as a closing account specialist. Taylor’s duties included collecting amounts that were charged off when a customer’s account was closed. Occasionally a closed account would receive a deposit via an automatic deposit or otherwise, after it had been closed. Taylor’s job duties required her to request a bank check to refund any deposit amount in excess of any charged off amount in the closed account. Taylor was required to submit this request for approval of a bank check to a bank officer, who would approve issuance of a bank check for the refund amount which would then be mailed to the customer’s last known address.
Taylor allegedly used her position at the bank to generate fraudulent UMB checks made payable to her friends, family members and others, including her codefendants. She submitted false and fraudulent requests for approval of the bank checks to UMB bank officers, the indictment says. Conspirators allegedly kept a portion of the funds from the UMB bank checks and returned a portion of the funds to Taylor, Williams, Whitehead or others.
Each of the 12 defendants is charged with participating in a bank fraud conspiracy from May 2006 until October 2010. Various defendants are also charged in 43 additional counts of bank fraud related to cashing fraudulent checks.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jess E. Michaelsen. It was investigated by the U.S. Secret Service.Albuquerque Man Arraigned on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – James Olsson, 60, of Albuquerque, N.M., was arraigned this morning on a two-count indictment charging him with possession of visual depictions of minors engaged in sexually explicit conduct. Olsson entered a not guilty plea and was ordered detained pending trial.
The indictment charges Olsson with possessing child pornography on April 11, 2013, in Bernalillo County, N.M. According to court filings, on that day, a state probation officer learned that Olsson possessed child pornography during a routine field visit with Olsson at his residence. Olsson was arrested on state charges and has been in state custody until he was transferred to federal custody on June 26, 2013, to face the charges in the indictment.
If convicted, Olsson faces a maximum prison sentence of not less than ten years and not more than 20 years on each of the two possession of child pornography charges. Olsson faces this enhanced sentence because he previously has been convicted of a child pornography offense. The indictment against Olsson is merely an accusation and he is presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the FBI, the Bernalillo County Sheriff’s Office and the New Mexico Corrections Department Probation and Parole. The case is being prosecuted by Assistant U.S. Attorney Charlyn E. Rees 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 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.
A. Lee Bentley, III to Serve as Acting United States Attorney for the Middle District of FloridaRead the Press Release
Lee Bentley became the Acting United States Attorney for the Middle District of Florida following the departure of U.S. Attorney Robert E. O’Neill on July 8, 2013. Previously, Mr. Bentley served as the First Assistant to U.S. Attorney O’Neill. Mr. Bentley has been an Assistant United States Attorney in the Middle District of Florida since 2000. Prior to that, he worked at the law firm of Hogan & Hartson in Washington, DC as an associate (1990-1992) and a partner (1993-2000). Mr. Bentley also has served as a Special Assistant United States Attorney in the Southern District of Florida (Miami), an Attorney-Advisor in the Office of Legal Counsel, Department of Justice (Washington, DC), a law clerk to Hon. Lewis F. Powell, Jr., United States Supreme Court (Washington, DC), and a law clerk to Hon. Clement F. Haynsworth, Jr., United States Court of Appeals for the Fourth Circuit (Greenville, South Carolina). He graduated with highest honors from the University of Georgia (1980) and the University of Virginia School of Law (1983).
8 July 2013
Woodburn Man Sentenced to 108 Months in Federal Prison for Drug, Firearms, Food Stamp Fraud, and Illegal Reentry CrimesRead the Press Release
PORTLAND, Ore. – U.S. District Court Judge Michael W. Mosman today sentenced Albino Miranda Camarillo, 44, of Woodburn, Oregon, to 108 months in prison for possession with intent to distribute methamphetamine, felon in possession of firearms, food stamp fraud, and illegal reentry by a deported alien.
Portland FBI, ICE, and ATF agents, in conjunction with the South Metro Gang Task Force, consisting of Hillsboro Police, Woodburn Police, Canby Police, Oregon City Police, and Department of Agriculture Special Agents began investigating the drug trafficking activities of a person referred to as “JoJo.” Agents learned that Albino Miranda Camarillo was a Mexican citizen who had prior criminal convictions in 1990 and 1994 in Madera County, California, for transporting narcotics for sale, and that he had been deported after serving prison sentences.
An undercover investigation identified a storage locker, several vehicles, and a home in Woodburn after buying drugs from Camarillo. A financial investigation revealed that Camarillo was collecting food stamp benefits while claiming to be unemployed and the head of a family of five.
A Canby Detective sought seizure warrants to seize cash deposited in bank accounts by defendant totaling $28,504.22, which was later forfeited as unlawfully obtained food stamp benefits, since defendant Camarillo failed to declare his drug trafficking income on his State of Oregon benefit claims. Upon his arrest, defendant’s premises and were vehicles searched, and his bank accounts seized. On November 15, 2012, Camarillo pled guilty to four federal crimes and agreed to a sentence of 108 months in federal prison. At the time of his release he will be deported to Mexico. Should Camarillo illegally return to the United States after serving his federal prison sentence he will be subject to additional prosecution for immigration offenses.
Assistant U. S. Attorney John Haub prosecuted the case.
Woman Pleads Guilty to Theft of Government PropertyRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces that Kayla M. Noble, a student at Florida A&M University in Tallahassee, pleaded guilty today to one count of theft of government property. Noble faces a maximum penalty of ten years in federal prison. As part of her plea agreement, she agreed to forfeit to the United States $102,237 representing the proceeds obtained as a result of the offense.
According to the plea agreement, in September and October 2011, Noble participated in a scheme to defraud the United States Treasury. As part of the scheme, fraudulently-obtained federal income tax refunds were deposited into her checking and savings accounts. For her role in the scheme, Noble was compensated with a portion of the proceeds. In total, twelve fraudulent income tax refunds totaling $102,237 were deposited into her bank accounts.
This case was investigated by the Internal Revenue Service Criminal Investigation. It is being prosecuted by Assistant United States Attorney Matthew J. Mueller.
US Joins False Claims Act Lawsuit Alleging<br /> Illegal Physician Compensation by Mobile, Ala., Health FirmRead the Press Release
The government has intervened in a False Claims Act lawsuit against Infirmary Health System Inc. and its related entities: IMC-Diagnostic and Medical Clinic P.C., Diagnostic Physicians Group P.C. and Infirmary Medical Clinics P.C., the Department of Justice announced today. The lawsuit alleges that IMC-Diagnostic and Medical Clinic, in Mobile, Ala., billed Medicare for services referred by Diagnostic Physicians Group physicians, in violation of the Stark Law and Anti-Kickback Statute. IMC-Diagnostic and Medical Clinic is owned by Infirmary Medical Clinics, a subsidiary of Infirmary Health System, also based in Mobile.
“Financial arrangements that compensate physicians for referrals encourage physicians to make decisions based on financial gain rather than patient needs,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division. “The Department of Justice is committed to preventing illegal financial relationships that corrupt the integrity of our public health programs.”Enforcement of the Stark Law and the Anti-Kickback Statute is intended to ensure that physicians’ medical judgment is not compromised by improper financial incentives. The Stark Law forbids a clinic or hospital from billing Medicare for certain services referred by physicians who have a financial relationship with the entity. The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of services or items covered by federal health care programs, including Medicare. The lawsuit alleges that the IMC-Diagnostic and Medical Clinic improperly paid Diagnostic Physicians Group physicians compensation that included a percentage of the money collected from Medicare for tests and procedures the doctors referred to the clinic. These improper payments, and resulting submission of false claims to the Medicare program, violated the Stark Law and Anti-Kickback Statute.
“The Stark Law and Anti-Kickback Statute were enacted to prevent financial ties from influencing the level of care provided to patients,” said Kenyen Brown, U.S. Attorney for the Southern District of Alabama. “By bringing cases such as this one against Infirmary Health System, we hope to ensure that precious health care resources are not wasted due to improper financial relationships among health care providers.”
The lawsuit was filed in July 2011 by former Diagnostic Physicians Group physician, Dr. Christian Heesch, under the qui tam, or whistleblower, provisions of the False Claims Act, which authorize private parties to sue on behalf of the U.S. and receive a portion of any recovery. The act also permits the government to intervene and take over a lawsuit, as it has done in this case.The government’s intervention in this lawsuit illustrates its emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $14.7 billion through False Claims Act cases, with more than $10.7 billion of that amount recovered in cases involving fraud against federal health care programs.
The government’s investigation has been a coordinated effort by the Department of Justice, Civil Division, Commercial Litigation Branch; the U.S. Attorney’s Office for the Southern District of Alabama; the Department of Health and Human Services Office of Inspector General; and the FBI. The government has 30 days to file and serve a superseding complaint in this matter.
The case is captioned U.S. ex rel. Heesch v. Diagnostic Physicians Group, P.C. et al., Civil Action No. 11-0364-KD-B (S.D. Ala.). The claims in the complaint are allegations only; there has been no determination of liability.U.S. Joins False Claims Act Lawsuit Alleging Illegal Physician Compensation by Mobile, AL. Health FirmRead the Press Release
WASHINGTON – The government has intervened in a False Claims Act lawsuit against Infirmary Health System Inc. and its related entities: IMC-Diagnostic and Medical Clinic P.C., Diagnostic Physicians Group P.C. and Infirmary Medical Clinics P.C., the Department of Justice announced today. The lawsuit alleges that IMC-Diagnostic and Medical Clinic, in Mobile, Ala., billed Medicare for services referred by Diagnostic Physicians Group physicians, in violation of the Stark Law and Anti-Kickback Statute. IMC-Diagnostic and Medical Clinic is owned by Infirmary Medical Clinics, a subsidiary of Infirmary Health System, also based in Mobile.
“Financial arrangements that compensate physicians for referrals encourage physicians to make decisions based on financial gain rather than patient needs,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division. “The Department of Justice is committed to preventing illegal financial relationships that corrupt the integrity of our public health programs.”
Enforcement of the Stark Law and the Anti-Kickback Statute is intended to ensure that physicians’ medical judgment is not compromised by improper financial incentives. The Stark Law forbids a clinic or hospital from billing Medicare for certain services referred by physicians who have a financial relationship with the entity. The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of services or items covered by federal health care programs, including Medicare. The lawsuit alleges that the IMC-Diagnostic and Medical Clinic improperly paid Diagnostic Physicians Group physicians compensation that included a percentage of the money collected from Medicare for tests and procedures the doctors referred to the clinic. These improper payments, and resulting submission of false claims to the Medicare program, violated the Stark Law and Anti-Kickback Statute.
“The Stark Law and Anti-Kickback Statute were enacted to prevent financial ties from influencing the level of care provided to patients,” said Kenyen Brown, U.S. Attorney for the Southern District of Alabama. “By bringing cases such as this one against Infirmary Health System, we hope to ensure that precious health care resources are not wasted due to improper financial relationships among health care providers.”
The lawsuit was filed in July 2011 by former Diagnostic Physicians Group physician, Dr. Christian Heesch, under the qui tam, or whistleblower, provisions of the False Claims Act, which authorize private parties to sue on behalf of the U.S. and receive a portion of any recovery. The act also permits the government to intervene and take over a lawsuit, as it has done in this case.
The government’s intervention in this lawsuit illustrates its emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $14.7 billion through False Claims Act cases, with more than $10.7 billion of that amount recovered in cases involving fraud against federal health care programs.
The government’s investigation has been a coordinated effort by the Department of Justice, Civil Division, Commercial Litigation Branch; the U.S. Attorney’s Office for the Southern District of Alabama; the Department of Health and Human Services Office of Inspector General; and the FBI. The government has 30 days to file and serve a superseding complaint in this matter.
The case is captioned U.S. ex rel. Heesch v. Diagnostic Physicians Group, P.C. et al., Civil Action No. 11-0364-KD-B (S.D. Ala.). The claims in the complaint are allegations only; there has been no determination of liability.
Two Sentenced to Prison for Arson That Killed Kansas State ResearcherRead the Press Release
TOPEKA – Two people have been sentenced to federal prison for setting a fire that killed a woman in an apartment complex in Manhattan, Kan., U.S. Attorney Barry Grissom said today.
Patrick Martin Scahill, 20, Manhattan, Kan., was sentenced to 30 years. Virginia Amanda Griese, 20, Manhattan, Kan., was sentenced to 20 years.
Both of them pleaded guilty to one count of arson resulting in death. In his plea, Scahill admitted he started the Feb. 6, 2013, fire at the Lee Crest Apartments at 820 Sunset Avenue in Manhattan that caused the death of Kansas State researcher Vasanta Pallem. Scahill admitted he started the fire in an effort to create a diversion that would prevent police from finding evidence in his residence of an armed robbery and other crimes.
“This case is a tragic story,” said U.S. Attorney Barry Grisom. “A promising young woman who came to the United States to further her education died in a fire deliberately set by a young man who gave no thought to her or the other people whose lives he was endangering.”
“Arson is a violent crime with often devastating results. In this case, a life was lost,” said ATF Special Agent in Charge Marino F. Vidoli. “ATF is proud to have worked with our state and local partners to bring these defendants to justice.”
The sequence of events began in the late evening hours of Feb. 5 when Scahill’s associates, Frank Joseph Hanson and Dennis James Denzien, conspired to commit a robbery at Dara’s Fast Lane, a convenience store in Manhattan. Early in the morning hours of Feb. 6, Hanson and Denzien robbed Dara’s Fast Lane. Denzien was the driver. Hanson entered the store brandishing a .22 caliber pistol owned by Scahill.
At about 6 p.m. that day, Riley County Police were dispatched to a disturbance call and knocked on the door of the residence where Scahill lived. Denzien and Hanson also were at the residence when police arrived. After police noticed a strong odor of marijuana from the residence, they told Scahill and the others they were going to seek a warrant to search the residence. Scahill, Denzien and Hanson left the residence while police were working to obtain a warrant.
Meeting together later, Scahill, Denzien, Hanson and Griese discussed the likelihood that police would find narcotics, a firearm and items associated with the robbery at Dara’s Fast Lane once they searched Scahill’s residence. They discussed ways to divert the attention of law enforcement officers long enough for Scahill to re-enter the residence and remove the incriminating evidence.
In the end, Griese, a friend named Gavin Hairgrove, and another person, drove to a Walmart where Griese bought a five-gallon gas can. Then they went to a HyVee gas station where Hairgrove worked and Griese pumped 4.7 gallons of gas into the can. She paid for it with her debit card.
Later, Scahill and Griese drove around looking for something to burn. They chose the Lee Crest Apartments, a three-level, 12-unit apartment complex within sight of Scahill’s apartment. Scahill entered the building. He emptied the contents of the gas can in the lower level hallway, set the fire and left the building.
As the fire burned, a thick, black smoke rose through the building, forcing tenants out of their apartments through windows and out of balconies. Vasanta Pallem was unable to escape the building. She worked her way from her apartment on the top floor of the building to the first floor where she died near the east entrance of the complex. An autopsy showed she died from breathing fumes during the fire. The carbon monoxide saturation in her system was over 50 percent, more than enough to kill her.
After setting the fire, Scahill and Griese went to Griese’s apartment where Scahill cleaned up and discarded clothes soaked in gasoline. Hairgrove assisted Scahill in disposing of his shoes, which reeked of gasoline.
Later, investigators looking into the arson received tips that led them to Scahill.
Other defendants include: Frank Joseph Hanson, 23, Manhattan, Kan., who has pleaded guilty and is set for sentencing Aug. 12.
Dennis James Denzien, 20, Manhattan, Kan., who pleaded guilty and is set for sentencing Aug. 12.
Gavin Taylor Hairgrove, 19, Manhattan, Kan., who is awaiting trial.Grissom commended all the investigators and law enforcement agencies that worked on the case, including the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Riley County Attorney’s Office, the Riley County Police Department, the Manhattan Fire Department, the Kansas State Fire Marshal’s Office, the Kansas Bureau of Investigations and the Pottawatomie County Sheriff’s Office, as well as Assistant U.S. Attorney Jared Maag, Special Assistant U.S. Attorney Barry Wilkerson and Special Assistant U.S. Attorney Barry Disney, who are prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Tax Defier Chester Evans Davis Sentenced to 97 Months in PrisonRead the Press Release
PORTLAND, Ore. — U.S. District Court Judge Michael Simon today sentenced Chester Evans Davis, 56, of Oregon City, to 97 months in federal prison, to be followed by three years of supervised release. In March 2013, a federal jury convicted Davis of five counts of tax evasion, four counts of failure to file a corporate tax return, and one count of obstructing the internal revenue laws. At the sentencing hearing, the government presented evidence that Davis currently owes over $7 million in state and federal income taxes, and Judge Simon ordered Davis to pay his taxes and to file timely tax returns in the future.
“This defendant took extraordinary measures to hide his money,” said U.S. Attorney S. Amanda Marshall. “He refused to pay his fair share of taxes, to the detriment of all taxpayers, but now he will be repaying his debt to society for a very long time.”
“There are a number of strategies we often see people use when they try to get away with tax evasion,” said Kenneth J. Hines, Special Agent in Charge of IRS Criminal Investigation in the Pacific Northwest. “Mr. Davis tried a lot of them. He filed frivolous lawsuits, false documents with the IRS, and false and harassing claims against IRS personnel. He used alternative ‘banks’ to conceal his finances and nominees to disguise his business activities. These strategies all have one thing in common - they result in criminal conviction.”
Davis is the former owner and president of ESA International (formerly ESA NW, Inc.), a Gladstone engineering firm specializing in power system software. Davis’ company earned millions of dollars in annual revenue, including revenue from federal government agencies such as the U.S. Air Force, the Army Corps of Engineers, and Bonneville Power Administration. Davis transferred money from his company to various shell corporations and a warehouse bank, and then used the money to purchase more than $5 million in gold bars and coins. In response to the IRS audit, Davis sought to harass IRS employees, by filing arrest warrants against them, by filing liens, and by filing bogus Forms 1099-OID representing that he had paid income to IRS employees, as well as others.
Special Agents with Internal Revenue Service (IRS) Criminal Investigation seized over $1 million of Davis’ gold while executing search warrants at Davis’ residence and business, but the unaccounted-for gold is worth more than $7 million. While executing search warrants, IRS Criminal Investigation Special Agents found and seized over $1 million of Davis’ gold and approximately $115,000 in cash, much of which Davis hid in Bazooka tubes in his and a family member's home. In Davis' home, agents also found thirty-nine firearms, body armor, tactical gear, sniper training materials, survival manuals, and anti-government literature.
This case stemmed from an investigation by Internal Revenue Service Criminal Investigation. The case was prosecuted by Assistant U.S. Attorneys Craig Gabriel and Stacie Beckerman.
Suwannee County Man Sentenced to 18 Months in Federal Prison for Failing to Register as Sex OffenderRead the Press Release
Jacksonville, Florida - United States District Judge Marcia Morales Howard today sentenced Denny Junior Jenkins (42, Live Oak) to 18 months in prison for failing to register as sex offender in the state of Florida, after traveling from the state of South Carolina. Jenkins was also ordered to serve a 10-year term of supervised release following his prison sentence. He pleaded guilty on March 18, 2013.
According to court documents, on September 4, 1992, Jenkins was convicted in Suwannee County, Florida of two counts of attempted sexual battery upon a child under 12 years of age. Because of these convictions, Jenkins is required to register as a sex offender under Florida law for the remainder of his life. After being released from prison, Jenkins received and executed documents that advised him of these conditions.
Court documents show that, in 2010, Jenkins changed his residence to the state of South Carolina and executed documents that advised, among other things, that if he moved to another state he must register as a sex offender in that state. In April 2012, Jenkins left South Carolina and moved back to Florida and established residence in Suwannee County. According to court documents, after establishing residence in Florida in April 2012, Jenkins was required to register and keep his registration current with the state of Florida under the Sex Offender Registration and Notification Act (SORNA). He failed to do so. On February 15, 2013, Jenkins was arrested and stated, among other things, that he moved from South Carolina to Florida in April 2012 and acknowledged that he did not register as a sex offender.
This case was investigated by the United States Marshals Service, the Suwannee County Sheriff’s Office, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney D. Rodney Brown.It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc for more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Supervisor of $63 Million Health Care Fraud Scheme <br /> Sentenced in Florida to 10 Years in PrisonRead the Press Release
A former supervisor at defunct health provider Health Care Solutions Network Inc. (HCSN) was sentenced today in Miami to serve 10 years in prison for her central role in a fraud scheme that resulted in more than $63 million in fraudulent claims to Medicare and Florida Medicaid.
The sentence was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Special Agent in Charge of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
Wondera Eason, 51, of Miami, was sentenced by U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida. In addition to her prison term, Eason was sentenced to serve three years of supervised release and ordered to pay $14,985,876 in restitution.
On April 25, 2013, a federal jury found Eason guilty of conspiracy to commit health care fraud.
Eason was employed as the director of medical records at HCSN’s partial hospitalization program (PHP). A PHP is a form of intensive treatment for severe mental illness. In Florida, HCSN operated community mental health centers at two locations. After stealing millions from Medicare and Medicaid in Florida, HCSN’s owner, Armando Gonzalez, expanded the scheme to North Carolina, opening a third HCSN location in Hendersonville, N.C.
Evidence at trial showed that at all three locations, Eason, a certified medical records technician, oversaw the alteration, fabrication and forgery of thousands of documents that purported to support the fraudulent claims HCSN submitted to Medicare and Medicaid. Many of these medical records were created weeks or months after the patients were admitted to HCSN facilities in Florida for purported PHP treatment and were utilized to support false and fraudulent billing to government-sponsored health care benefit programs, including Medicare and Medicaid. Eason directed therapists to fabricate documents, and she also forged the signatures of therapists and others on documents that she was in charge of maintaining. Eason interacted with Medicare and Medicaid auditors, providing them with false and fraudulent documents, while certifying the documents were accurate.
The “therapy” at HCSN oftentimes consisted of nothing more than patients watching Disney movies, playing bingo and having barbeques. Eason directed therapists to remove any references to these recreational activities in the medical records.
According to evidence at trial, Eason was aware that HCSN in Florida paid illegal kickbacks to owners and operators of Miami-Dade County assisted living facilities (ALF) in exchange for patient referral information to be used to submit false and fraudulent claims to Medicare and Medicaid. Eason also knew that many of the ALF referral patients were ineligible for PHP services because many patients suffered from mental retardation, dementia and Alzheimer's disease.
From 2004 through 2011, HCSN billed Medicare and the Medicaid program more than $63 million for purported mental health services.
Fifteen defendants have been charged and have pleaded guilty or been convicted by a jury for their roles in the HCSN health care fraud scheme.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case was prosecuted by Trial Attorney Allan J. Medina, former Special Trial Attorney William Parente and Deputy Chief Benjamin D. Singer of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Supervisor of $63 Million Health Care Fraud Scheme Sentenced in Florida to 10 Years in PrisonRead the Press Release
A former supervisor at defunct health provider Health Care Solutions Network Inc. (HCSN) was sentenced today in Miami to serve 10 years in prison for her central role in a fraud scheme that resulted in more than $63 million in fraudulent claims to Medicare and Florida Medicaid.
The sentence was announced by U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Acting Assistant Attorney General Mythili Raman of the Justice Department's Criminal Division; Michael B. Steinbach, Special Agent in Charge of the FBI’s Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
Wondera Eason, 51, of Miami, was sentenced by U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida. In addition to her prison term, Eason was sentenced to serve three years of supervised release and ordered to pay $14,985,876 in restitution.
On April 25, 2013, a federal jury found Eason guilty of conspiracy to commit health care fraud.
Eason was employed as the director of medical records at HCSN’s partial hospitalization program (PHP). A PHP is a form of intensive treatment for severe mental illness. In Florida, HCSN operated community mental health centers at two locations. After stealing millions from Medicare and Medicaid in Florida, HCSN’s owner, Armando Gonzalez, expanded the scheme to North Carolina, opening a third HCSN location in Hendersonville, N.C.
Evidence at trial showed that at all three locations, Eason, a certified medical records technician, oversaw the alteration, fabrication and forgery of thousands of documents that purported to support the fraudulent claims HCSN submitted to Medicare and Medicaid. Many of these medical records were created weeks or months after the patients were admitted to HCSN facilities in Florida for purported PHP treatment and were utilized to support false and fraudulent billing to government-sponsored health care benefit programs, including Medicare and Medicaid. Eason directed therapists to fabricate documents, and she also forged the signatures of therapists and others on documents that she was in charge of maintaining. Eason interacted with Medicare and Medicaid auditors, providing them with false and fraudulent documents, while certifying the documents were accurate.
The “therapy” at HCSN oftentimes consisted of nothing more than patients watching Disney movies, playing bingo and having barbeques. Eason directed therapists to remove any references to these recreational activities in the medical records.
According to evidence at trial, Eason was aware that HCSN in Florida paid illegal kickbacks to owners and operators of Miami-Dade County assisted living facilities (ALF) in exchange for patient referral information to be used to submit false and fraudulent claims to Medicare and Medicaid. Eason also knew that many of the ALF referral patients were ineligible for PHP services because many patients suffered from mental retardation, dementia and Alzheimer's disease.
From 2004 through 2011, HCSN billed Medicare and the Medicaid program more than $63 million for purported mental health services.
Fifteen defendants have been charged and have pleaded guilty or been convicted by a jury for their roles in the HCSN health care fraud scheme.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case was prosecuted by Trial Attorney Allan J. Medina, former Special Trial Attorney William Parente and Deputy Chief Benjamin D. Singer of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
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.
Stamford Man Sentenced to More Than Seven Years in Federal Prison for Possessing Stolen FirearmRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that LONNIE WILLIAMS, 27, of Stamford, was sentenced today by United States District Judge Janet Bond Arterton in New Haven to 92 months of imprisonment, followed by three years of supervised release, for possessing a stolen firearm.
According to court documents and statements made in court, in July 2012, WILLIAMS stored a stolen Glock 9mm handgun, loaded with seven rounds of ammunition, in the base of a tree in park in Stamford.
WILLIAMS has been detained since his arrest on September 24, 2012. On April 8, 2013, he pleaded guilty to one count of possession of a stolen firearm.
WILLIAMS’s criminal history includes multiple felony convictions.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Stamford Police Department. The case was prosecuted by Assistant United States Attorneys Vanessa Williams and Rahul Kale.
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(203) 821-3722 [email protected]St. Jude's Pharmacy Owner & Wife Indicted on Federal ChargesRead the Press Release
Fort Myers, Florida - United States Attorney Robert E. O'Neill announces the return of an indictment charging Cape Coral residents Jorge Otano (51) and his wife, Martha Otano (41). Jorge Otano, the owner of the former St. Jude's Pharmacy in Cape Coral, is charged with conspiracy to distribute oxycodone, a controlled substance outside the usual course of professional practice and for other than legitimate medical purposes. In addition, Jorge and Martha Otano (vice-president of the former St. Jude's Pharmacy) are both charged with conspiring to evade the reporting requirements of the Bank Secrecy Act, as part of a pattern of illegal activity involving more than $100,000 in a 12-month period. They are each also charged with three substantive counts of structuring transactions to evade the reporting requirements.
If convicted of conspiring to distribute a controlled substance, Jorge Otano faces a maximum penalty of twenty years in federal prison. If convicted of conspiring to structure deposits to evade reporting requirements, they each face a maximum penalty of five years in federal prison. Each structuring transactions to evade reporting requirements charge carries a maximum penalty of ten years in federal prison. The indictment also notifies both that the United States intends to forfeit $750,525.17 that was seized during the course of the investigation, computer equipment used to facilitate the crime, a house in Cape Coral, and two vehicles which are alleged to be traceable to proceeds of the offense. In addition, the United States is seeking a money judgment in the amount of $430,000.00, as additional proceeds of the crimes charged in the indictment.
According to the indictment, Jorge and Martha Otano were registered pharmacy technicians and operators of St. Jude's Pharmacy in Cape Coral. From approximately August 2009 until November 15, 2012, Jorge Otano conspired with others to possess with intent to distribute, and distribute oxycodone outside the usual course of professional practice and for other than legitimate medical purposes. In addition, Jorge and Martha Otano made cash deposits, including deposits of illegal proceeds, into domestic financial institutions in amounts of $10,000 or less in order to avoid triggering bank reporting requirements. The Otanos allegedly made multiple deposits below the reporting requirement at multiple banks on the same day and at the same branch on successive days. The indictment alleges that they made in excess of $100,000 in structured cash deposits in one year.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Secret Service and the Drug Enforcement Administration. It will be prosecuted by Assistant United States Attorneys David G. Lazarus and Yolande G. Viacava.
Sister and Brother Drug Distribution Team Sentenced to Prison for Dealing Narcotic Pain KillersRead the Press Release
A brother and sister team has been sentenced to prison for their scheme to ship narcotics from the Los Angeles area for distribution in Seattle, announced U.S. Attorney Jenny A. Durkan. ROBIN BROWN, 52, of Los Angeles, California was sentenced today in U.S. District Court in Seattle to 62 months in prison and four years of supervised release for conspiracy to distribute oxycodone. BROWN’s brother, Terrell Brown, was sentenced last month to 37 months in prison and three years of supervised release for his role in the drug distribution scheme. At sentencing today U.S. District Judge James L. Robart noted the inherent danger of oxycodone abuse.
According to records filed in the case, BROWN and her brother came to the attention of Postal Inspection Service Investigators when an alert postal employee reported numerous express mail packages being delivered to Terrell Brown’s Seattle apartment. A records review showed more than 90 express mail packages sent from Los Angeles to the Seattle apartment in a one year period. Apartment managers confirmed that Terrell Brown received multiple express mail packages each week and had just purchased a new Cadillac Escalade despite reporting little income. In July 2012, investigators served a search warrant on a package destined for Brown and found 210 pills of 30 mg oxycodone. Even as they were executing a search warrant on Terrell Brown’s apartment another package arrived with another 240 pills of oxycodone.
ROBIN BROWN pleaded guilty on March 14, 2013. Terrell Brown pleaded guilty on March 28, 2013.
ROBIN BROWN has multiple prior criminal convictions in Washington and California. In asking for a lengthy prison term for BROWN prosecutors noted that oxycodone abuse is a significant problem in the community. “Overdoses of oxycodone and other prescription opiates are a leading cause of death in King County…. In 2000, there were 13 deaths in King County from oxycodone overdoses. That number increased steadily over the next nine years, with 60 deaths directly attributable to oxycodone in 2009. Oxycodone was present (but not necessarily the sole cause) in 104 deaths in 2009, as opposed to just 26 in 2000,” prosecutors wrote in their sentencing memo.
The case was investigated by the U.S. Postal Inspection Service and was prosecuted by Assistant United States Attorney Justin Arnold.
Sex Offender Sentenced to 65 Months in Federal Prison for Failing to Register for A 3rd TimeRead the Press Release
PROVIDENCE, R.I. – Christian J. Morales, 30, formerly of Pawtucket and Woonsocket, R.I., and Blackstone, Mass., was sentenced today to 65 months in federal prison for failing to register as a sex offender for the 3rd time, announced United States Attorney Peter F. Neronha and United States Marshall Jamie A. Hainsworth. The sentence was imposed by U.S. District Court Judge William E. Smith.
Morales, convicted in Rhode Island state court in December 2006 on two counts of child molestation, has a lifetime duty to register as a sex offender under the federal Sex Offender Registration and Notification Act (SORNA).
SORNA provides a comprehensive set of federal standards for sex offender registration and notification in the United States through the nationwide network of sex offender registration and notification programs. Additionally, SORNA requires registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school, and to make periodic in-person appearances to verify and update their registration information.
According to information presented to the court, Morales was arrested and charged in November 2008 and in June 2010 with failing to register as a sex offender after changing addresses in Woonsocket and Pawtucket.
Morales was arrested for failing to register as a sex offender for the third time on July 1, 2010, after Woonsocket Police became aware that Morales was no longer living at a Woonsocket address where he was registered. Morales was located in a Blackstone, Mass., apartment where he was living with his girlfriend and her 4-year-old child, and was arrested by members of the U.S. Marshals Service, R.I. State Police, Woonsocket Police and Mass. State Police
The case was prosecuted by Assistant U.S. Attorney Mary Rogers.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]San Antonio Man Indicted for Allegedly Shooting Common-Law Wife on Fort Sam Houston Faces New Charge of Conspiracy to Kill A WitnessRead the Press Release
A San Antonio man who is currently under federal indictment for allegedly shooting his common-law wife multiple times on Fort Sam Houston last month faces a new charge of conspiracy to kill a witness to prevent testimony and in retaliation for providing information to law enforcement announced United States Attorney Robert Pitman and Federal Bureau of Investigation San Antonio Division Special Agent in Charge Armando Fernandez.
A federal criminal complaint filed this morning against 51–year-old Alvin Leon Roundtree alleges that from June 26, 2013 until July 7, 2013, Roundtree conspired with his nephew, 28-year-old Leonard Roundtree, Jr., of Richardson, TX, to hire an individual to kill Alvin Roundtree’s common-law wife. According to the complaint, in recordings of multiple telephone calls placed by Alvin Roundtree from the GEO federal jail facility to Leonard Roundtree, Alvin told Leonard that he was going to pay an individual $10,000 to kill his common-law wife to prevent her from testifying against him in his upcoming trial and for providing information to investigators about the June 10, 2013, shooting incident. According to the complaint, Leonard Roundtree agreed to deliver a pre-payment of $1,000 to the individual solicited to commit the murder plus $9,000 more after the murder was carried out.
Leonard Roundtree was arrested yesterday in Richardson, TX. He had his initial appearance in federal court in Dallas earlier today where he waived his detention hearing and agreed to be transferred to the Western District of Texas for further court proceedings. Upon conviction of the conspiracy to kill charge, each defendant faces up to life in federal prison.
This case is being investigated by the Federal Bureau of Investigation (FBI) and the United States Marshals Service together with the U.S. Army Criminal Investigation Division and the San Antonio Police Department. Assistant United States Attorney Bettina Richardson is prosecuting this case on behalf of the Government.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
San Angelo Man Admits Possessing Child PornographyRead the Press Release
LUBBOCK, Texas — Joshua I. Suter, 24, of San Angelo, Texas, appeared in federal court in Lubbock on Friday, before U.S. District Judge Sam R. Cummings, and pleaded guilty to one count of possession of child pornography. Suter, who remains on bond, faces a maximum statutory penalty of 10 years in federal prison, a $250,000 fine and a lifetime of supervised release. Judge Cummings ordered a presentence investigation report with a sentencing date to be set after the completion of that report. Today’s announcement is made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, while living in San Angelo, Suter owned a computer which he kept at his residence. That computer was connected to the Internet. In the course of using the Internet to search for depictions of minors engaged in sexually explicit conduct, Suter downloaded and viewed numerous child pornography videos.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The case is being investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Steven M. Sucsy is in charge of the prosecution.
Saline County Woman Pleads Guilty to Methamphetamine Related OffenseRead the Press Release
Ashley Renee Uze, 27, of Harrisburg, Illinois, pled guilty today in United States District Court in Benton to an indictment charging her with possessing pseudoephedrine with the intent that it be used to manufacture methamphetamine, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced. The indictment, returned by a Federal Grand Jury on March 5th, alleged that the offense occurred on November 5, 2012.
Sentencing was set for October 24, 2013, at 11:00 a.m at the United States District Courthouse in Benton. At that time, Uze faces up to 20 years’ imprisonment, a $250,000 fine, and 3 years of supervised release to follow her incarceration.
Uze was remanded to the custody of the United States Marshal to await sentencing.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and is being prosecuted by Assistant United States Attorney James M. Cutchin.
Rapid City Man Indicted on Firearm ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City man previously convicted of a felony was indicted by a federal grand jury for knowingly possessing a stolen 9 mm caliber pistol and a stolen .30-30 caliber rifle, knowing he was prohibited from doing so.
Ryan Umbarger, age 22, was indicted on June 18, 2013, for Possession of a Stolen Firearm and Felon in Possession of a Firearm. He appeared before U.S. Magistrate Judge Veronica L. Duffy on July 2, 2013, and pleaded not guilty to the indictment. The maximum penalty upon conviction is 10 years’ imprisonment and/or a $250,000 fine. The charges are merely an accusation and Umbarger is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Pennington County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Eric Kelderman is prosecuting the case. Umbarger was remanded to the custody of the U.S. Marshal. A trial date has not yet been set.
# # #Owner of New York City Parking Lots Pleads Guilty to Failing to Pay Payroll Taxes to the IRSRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that TREVOR WHITTINGHAM, an owner of parking lots in Manhattan, pled guilty in Manhattan federal court to failing to pay payroll taxes to the Internal Revenue Service (“IRS”). WHITTINGHAM was arrested in January 2013 and pled guilty today before U.S. District Judge Richard J. Sullivan.
According to the Indictment and statements made in open court today at the plea proceeding:
WHITTINGHAM owned and controlled two companies, EZ Going Park Here and We Have Cars II, through which he operated parking lots in Harlem and other parts of upper Manhattan, New York. He was responsible for collecting, accounting for, and paying payroll taxes on behalf of both of these companies. From December 2006 through June 2009, WHITTINGHAM caused EZ Going Park Here and We Have Cars II to deduct and collect payroll taxes from its employees. The majority of those payroll taxes, however, were not paid over to the IRS as required. Instead, WHITTINGHAM used the corporate funds of EZ Going Park Here and We Have Cars II to pay for various personal items and otherwise finance a lavish lifestyle. As a result, from 2005 through 2009, EZ Going Park Here and We Have Cars II accumulated approximately $251,265 in unpaid payroll tax liabilities.
WHITTINGHAM, 63, of Fort Lee, New Jersey, pled guilty to one count of willfully failing to pay over payroll taxes to the IRS. He faces a maximum sentence of five years in prison. He will be sentenced by Judge Sullivan on November 15, 2013 at 10:30 a.m. WHITTINGHAM also agreed to make restitution to the IRS in the amount of $251,265.
Mr. Bharara praised the IRS, Criminal Investigation for its outstanding work in the investigation. He also thanked the U.S. Department of Justice’s Tax Division for their significant assistance in the investigation.
This case is being handled by the Office’s Complex Frauds Unit. Special Assistant U.S. Attorney Andrew Young is in charge of the prosecution.
New Fairfield Brothers Sentenced to Federal Prison for Distributing OxycodoneRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that two New Fairfield men were sentenced today in Bridgeport federal court for trafficking oxycodone and other controlled substances. U.S. District Judge Stefan R. Underhill sentenced JASON GEORGE WITTLIN, 30, and his brother, MICHAEL WITTLIN, 24, to prison terms of 48 months and 38 months, respectively.
According to court documents and statements made in court, in approximately February 2011, the Drug Enforcement Administration, in conjunction with the Connecticut State Police/Statewide Narcotics Division and Danbury Police Department began investigating a narcotics-trafficking organization led by JASON and MICHAEL WITTLIN. The investigation, which included court-authorized wiretaps, physical surveillance and controlled drug purchases, revealed that the WITTLIN brothers were purchasing large quantities of oxycodone from several individuals, and then redistributing the narcotics to other street-level dealers and also to their own drug customers. The investigation also revealed that JASON WITTLIN purchased and redistributed marijuana.
JASON and MICHAEL WITTLIN were arrested on August 18, 2012. On that date, a search of their Milltown Road residence revealed 13 firearms and assorted ammunition from locations throughout the house.
The WITTLIN brothers have been detained since their arrests. On January 22, 2013, JASON WITTLIN pleaded guilty to one count of conspiracy to possess with intent to distribute controlled substances, namely oxycodone and oxymorphone. MICHAEL WITTLIN pleaded guilty to the same charge on April 5, 2013.
JASON WITTLIN’s criminal history includes a federal marijuana trafficking conviction in 2006, which resulted in a 21-month sentence.
This matter is being investigated by the Drug Enforcement Administration, the Connecticut State Police and the Danbury Police Department. The case is being prosecuted by Assistant United States Attorneys Tracy Lee Dayton and David X. Sullivan.
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(203) 821-3722 [email protected]Naples Residents Plead Guilty to Tax Fraud for <br /> Failing to Pay Employment TaxesRead the Press Release
The Justice Department and the Internal Revenue Service (IRS) announced that Anthony Chaudhuri and Margaret Chaudhuri, of Naples, Fla., pleaded guilty today to one count each of conspiracy to defraud the United States.
According to court documents, the Chaudhuris owned and operated a hospital inventory control software company under the name Ariel Computing and various other nominee names, including ADI. Ariel Computing was operated from various addresses in Ann Arbor, Mich. Court documents indicate that between 1996 and 2008, the Chaudhuris withheld approximately $888,353 in employment taxes from Ariel Computing employees, but failed to pay over to the IRS approximately $704,488 of these withheld taxes, instead diverting those funds for their own personal use.
At sentencing, the Chaudhuris face a maximum of five years in prison and a $250,000 fine for the conspiracy charge. A sentencing date has not yet been set.
Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, commended the efforts of special agents IRS–Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Tiwana Wright and Mark McDonald, who are prosecuting the case.
Mexican Nationals Residing in Valencia County Sentenced to Federal Prison for Methamphetamine Trafficking ConvictionsRead the Press Release
ALBUQUERQUE – Adaucto Chavez-Meza, 20, was sentenced this morning to 135 months in federal prison for his methamphetamine trafficking conviction. One of his co-defendant, Jesus Omar Lopez-Valle, 28, was sentenced on June 24, 2013 to 210 months in federal prison for his methamphetamine trafficking and firearms conviction. Both men are Mexican nationals and will be deported after completing their prison sentences.
Chavez-Meza, Jesus Lopez-Valle and co-defendant Hector Manuel Lopez-Valle, 24, also a Mexican national, were arrested on methamphetamine trafficking charges on March 1, 2012. At the time, the three men were illegally present in the United States and living in Valencia County, N.M.
According to court filings, from Feb. 21, 2012 to March 1, 2012, Jesus Lopez-Valle and Hector Lopez-Valle conspired with Chavez-Meza to sell four pounds of methamphetamine to an individual who, unbeknownst to them, was an undercover officer. The men were arrested in Albuquerque on March 1st, after they displayed more than four pounds of methamphetamine to the undercover officer. During a post-arrest interview, Chavez-Meza admitted that they intended to sell the methamphetamine to the undercover officer for approximately $60,000. Jesus Lopez-Valle also admitted that the three men intended to sell the methamphetamine to the undercover officer, and Hector Lopez-Valle admitted to transporting the methamphetamine from Belen to Albuquerque.
Chavez-Meza pleaded guilty on Feb. 25, 2013, to an indictment charging him with conspiracy and possession of methamphetamine with intent to distribute. Jesus Lopez-Valle and Hector Lopez-Valle each pleaded guilty on March 1, 2013, to a superseding indictment charging them with conspiracy and possession of methamphetamine with intent to distribute. Jesus Lopez-Valle also pleaded guilty to being an illegal alien in possession of firearms. All three men entered their guilty pleas without the benefit of plea agreements.
Hector Lopez-Valle remains in federal custody pending his sentencing hearing, which is scheduled for July 22, 2103. At sentencing, he faces a mandatory minimum ten years in prison and a maximum of life in prison, and will be deported after completing his prison sentence.
The case was prosecuted by Assistant U.S. Attorneys Samuel A. Hurtado and Nicholas J. Ganjei and was investigated by the Cross Border Drug Violence Squad of the Albuquerque Division of the FBI and the Las Cruces/Doña Ana County Metro Narcotics Agency.Las Vegas Man Pleads Guilty to Federal Stolen Goods ChargesRead the Press Release
LAS VEGAS – A man pleaded guilty today to federal charges that he stole over $300,000 in expensive jewelry from persons at golf courses in multiple states, including Nevada, and sold it at trade shows, jewelry stores and pawn shops, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Jeffrey Cochran, 47, of Las Vegas, pleaded guilty before U.S. District Judge Gloria M. Navarro to two counts of possession and sale of stolen goods, and is scheduled to be sentenced on Oct. 18, 2013, at 9:00 a.m. Cochran faces up to 10 years in prison and a $250,000 fine on each count.
According to the plea agreement, from about Sept. 15, 2010, to March 10, 2012, Cochran stole jewelry, including Tag Heuer and Rolex watches, from individuals at golf courses in other states and transported the goods to Las Vegas for sale at jewelry and pawn stores. Cochran also stole jewelry from individuals at golf courses in Las Vegas and transported the stolen jewelry to other states to sell at trade shows and jewelry and pawn stores. The plea agreement states that the government and defendant agree that the readily provable loss associated with Cochran’s theft is $300,895.The case was investigated by the FBI and the Las Vegas Metropolitan Police Department Special Investigations Section, and was part of a federal and local law enforcement effort to combat organized retail theft. The case is being prosecuted by Assistant United States Attorney Christina M. Brown.
Justice Department Statement on Meeting with European UnionRead the Press Release
"This morning the Department of Justice hosted the initial meeting in the U.S.-E.U./E.U. Member State dialogue on intelligence practices, as first suggested by Attorney General Holder during a ministerial gathering with E.U. officials in Dublin last month.
“Officials from the Justice Department, Office of the Director of National Intelligence and the State Department represented the United States government. Officials from the E.U. included representatives of the Lithuanian Presidency of the EU, the European Council, the European Commission, the External Action Service of the EU, and EU Member States.
“This meeting focused on next steps for discussion of these issues, including the possibility of a follow-on meeting in the coming weeks. This open and constructive dialogue illustrates the extent and depth of the relationship between the U.S. and our European partners as we strive to protect both the safety and individual liberties of citizens on both sides of the Atlantic.“We look forward to this continued dialogue and cooperation with the EU and EU Member States.”
Justice Department Seeks to Shut Down Indiana Tax PreparerRead the Press Release
The Justice Department announced today that it has asked a federal court in Indianapolis, to bar Cynthia Hawk, who operates Gain Tax Services, from preparing tax returns. The civil injunction suit alleges that Hawk fails to comply with due diligence requirements imposed by federal law on tax preparers who claim the earned income tax credit (EITC) on customers’ income tax returns. According to the complaint, Hawk also falsified customers’ incomes in order to claim the maximum EITC for them.
The EITC is a refundable federal income tax credit available to certain low to moderate income working individuals and families. As a refundable credit, the EITC may entitle a taxpayer to a refund from the U.S. Treasury. The amount of the EITC depends on the taxpayer’s income, filing status and claimed number of dependents. The maximum credit in 2010 was $5,666. The range of earned income generating a maximum EITC is sometimes called the “sweet spot.” According to the complaint, Hawk fabricated businesses and reported fake business income on her customers’ tax returns to reach the EITC sweet spot.
The complaint alleges that the Internal Revenue Service (IRS) determined that Hawk failed to comply with due-diligence requirements when claiming the EITC for her customers. The IRS penalized Hawk in 2011 for her failures. When the IRS performed a follow-up investigation in 2012, as it routinely does, the complaint alleges that it again found ongoing failures and fraudulent claims by Hawk. According to the complaint, Hawk, who previously prepared tax returns in Atlanta, prepared at least 1,501 returns from 2009 through 2012, with unusually high refund rates ranging from 96 to 99 percent these years.
The complaint also alleges that Hawk claimed education credits on her customers’ tax returns, when the customers did not actually have any qualifying education expenses.
In the past decade the Justice Department’s Tax Division has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters. Information about these cases is available on the Justice Department’s Tax Division website www.justice.gov/tax.Related Materials:
United States v. Cynthia E. Hawk, etc.
Complaint for Permanent Injunction and Other Equitable Relief (PDF)Justice Department Enters into Memorandum of <br /> Understanding with National Labor Relations BoardRead the Press Release
The Justice Department announced today that the Civil Rights Division’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) has entered into a Memorandum of Understanding (MOU) with the National Labor Relations Board, formalizing a collaborative relationship that allows both agencies to share information, refer matters to each other and coordinate investigations as appropriate. OSC is responsible for enforcing the anti-discrimination provision of the Immigration and Nationality Act, which prohibits citizenship status and national origin discrimination in hiring, firing and recruitment or referral for a fee, as well as discriminatory Form I-9 and E-Verify practices. The National Labor Relations Board (NLRB) is an independent agency that enforces the National Labor Relations Act, which protects the rights of most private-sector employees to join together, with or without a union, to improve their wages and working conditions.
The MOU will allow the NLRB to make referrals to OSC, with the express authority of the NLRB charging party, when a matter before the NLRB suggests a possible violation of the anti-discrimination provision, such as verification of employment authorization, in the I-9 or E-Verify process, that appears to be discriminatory based on citizenship status or national origin. Similarly, the department will refer matters to the NLRB that appear to fall within that agency’s authority, such as infringement on the right to form, join, decertify or assist a labor organization, and to bargain collectively through representatives of their own choosing or to refrain from such activities. The MOU also provides for cross-training and technical assistance to ensure that staff within each agency can identify appropriate referrals. OSC has more than 50 partnership agreements with federal, state and local agencies, including U.S. Citizenship and Immigration Services and the Equal Employment Opportunity Commission.
“Employers cannot avoid liability under the law just because an employee has turned to the wrong agency or is unaware of additional protections available under a different law. Employees deserve to benefit from the efficiency of government cooperation, and employers will continue to benefit from agency guidance on how to comply with the anti-discrimination provision and the National Labor Relations Act,” said Gregory Friel, Deputy Assistant Attorney General for the Civil Rights Division.
For more information about protections against employment discrimination under the immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2525, TTY for hearing impaired), sign up for a free one-hour webinar at www.justice.gov/crt/about/osc/webinars.php, email OSC at [email protected], or visit OSC’s website at www.justice.gov/crt/about/osc.
Indictments Unsealed Charging Fifteen Defendants with Drug Trafficking in TopekaRead the Press Release
TOPEKA, KAN. – Fifteen defendants have been indicted on drug charges as a result of a federal drug trafficking investigation in Topeka, U.S. Attorney Barry Grissom said today.
Federal prosecutors Monday unsealed indictments alleging the defendants were part of a conspiracy to distribute methamphetamine in the Topeka area. Investigators served search warrants and made arrests in the case July 2.
Named in the indictments are: Francisco J. Granado, Sr., 44, Emporia, Kan., who is charged with one count of conspiracy to distribute methamphetamine and four counts of using a phone in furtherance of drug trafficking.
Arturo Favela-Gomez, 36, Topeka, Kan., who is charged with one count of conspiracy to distribute methamphetamine, four counts of distributing methamphetamine and 16 counts of using a phone in furtherance of drug trafficking.
Ismael Murillo-Nunez, 50k, Topeka, Kan., who is charged with one count of conspiracy to distribute methamphetamine, one count of distributing methamphetamine and 11 counts of using a phone in furtherance of drug trafficking.
Saul Salas-Gomez, 29, Topeka, Kan., who is charged with one count of conspiracy to distribute methamphetamine and five counts of using a phone in furtherance of drug trafficking.
Miguel Adame-Regino, who is charged with one count of conspiracy to distribute methamphetamine, two counts of distributing methamphetamine and four counts of using a phone in furtherance of drug trafficking.
Juan Carlos Flores-Rodriguez, 32, Grand Island, Neb., who is charged with one count of conspiracy to distribute methamphetamine and three counts of using a phone in furtherance of drug trafficking.
Chela Murillo, Topeka, Kan., who is charged with one count of conspiracy to distribute methamphetamine and three counts of using a phone in furtherance of drug trafficking.
Gustavo Gonzalez-Valadez, 26, Topeka, Kan., who is charged with one count of conspiracy to distribute methamphetamine and two counts of using a phone in furtherance of drug trafficking.
Jamie (last name unknown), who is charged with one count of conspiracy and four counts of using a phone in furtherance of drug trafficking.
Jerman Aldava, 28, Dodge City, Kan., who is charged with one count of conspiracy to distribute methamphetamine and nine counts of using a phone in furtherance of drug trafficking.
Jessica Howard, 30, Topeka, Kan., who is charged with one count of conspiracy to distribute methamphetamine and six counts of using a phone in furtherance of drug trafficking.
Robert Lovgren, 56, Manhattan, Kan., who is charged with one count of conspiracy to distribute methamphetamine and three counts of using a phone in furtherance of drug trafficking.
Lupita Gomez, 32, Kansas City, Kan., who is charged with one count of conspiracy to distribute methamphetamine.
Nancy Gutierrez-Soto, Topeka, Kan., who is charged with one count of conspiracy to distribute methamphetamine and two counts of using a phone in furtherance of drug trafficking.
Raul Cortes-Ponce, 52, Kansas City, Kan., who is charged with one count of conspiracy to distribute methamphetamine and five counts of using a phone in furtherance of drug trafficking.
Upon conviction, the crimes carry the following penalties: – Conspiracy: Not less than 10 years in federal prison and not more than life and a fine up to $10 million.
– Using a phone in furtherance of drug trafficking: A maximum penalty of four years and a fine up to $250,000 on each count.The Drug Enforcement Administration and the Topeka Police Department investigated. Also assisting were the Kansas Highway Patrol, the Emporia Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Immigration and Customs Enforcement.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Hartford Man Sentenced to 45 Months in Federal Prison for Illegally Possessing AmmunitionRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that ORLANDO NEALEY, 29, formerly of Willimantic and Hartford, was sentenced on Wednesday, July 3, by United States District Judge Robert N. Chatigny in Hartford to 45 months of imprisonment, followed by three years of supervised release, for illegally possessing ammunition.
According to court documents and statements made in court, on July 16, 2012, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) received information from the Hartford Police Department’s Shoot Team regarding five individuals who had purchased ammunition from a sporting goods store in East Hartford the previous day. All five of the individuals, including NEALEY, were convicted felons. The investigation revealed that NEALEY and others had purchased one box of 9mm ammunition, one box of .38 Special ammunition and one box of .45 Auto ammunition. Each of the boxes contained 50 rounds.
The investigation further revealed that the individuals stored firearms and ammunition in the basement of a residence on Pliny Street in Hartford. A court-authorized search of the residence revealed most of the ammunition that had been purchased on July 15, 2012, as well as a loaded 9mm handgun, a loaded .38 caliber revolver, a loaded pistol grip shotgun, and additional rounds of ammunition.
NEALEY has been detained since his arrest on July 20, 2012. On April 17, 2013, he pleaded guilty to one count of possession of ammunition by a previously convicted felon.
NEALEY’s criminal history includes felony convictions for sale of illegal drugs, possession of narcotics, larceny, burglary and violation of a protective order.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hartford Police Department, with the assistance of the East Hartford Police Department. The case is being prosecuted by Assistant United States Attorney Geoffrey M. Stone.
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(203) 821-3722 [email protected]Former Alabama Corrections Officer Pleads Guilty to Obstructing Justice in Federal Criminal Civil Rights Investigation of Beating Death of an InmateRead the Press Release
The Justice Department announced today that Joseph Sanders, 32, a former corrections officer of the Alabama Department of Corrections, pleaded guilty to obstructing justice in an investigation into the beating death of former inmate Rocrast Mack.
On Aug. 4, 2010, 24-year-old Rocrast Mack was beaten by several corrections officers at Ventress Correctional Facility in Clayton, Ala. He was repeatedly struck by a baton in an office in the prison, and several minutes later he was assaulted again in the medical unit of the prison when an officer stomped on Mack’s head several times. Mack died the following day in a Montgomery, Ala., hospital. Following Mack’s death, Sanders lied to investigators from the Department of Corrections to cover up the fact that Mack was unjustly and brutally beaten.
Two weeks ago, on June 25, a federal jury convicted Michael Smith, a former lieutenant at Ventress, of civil rights and obstruction of justice violations regarding this incident. Scottie Glenn, another former corrections officer at Ventress, pleaded guilty on Nov.18, 2011, to one count of violating the civil rights of Mack for his role in the incident and to one count of conspiring with other corrections officers to cover up the beatings. Matthew Davidson, another former corrections officer, pleaded guilty on Jan. 15, 2013, to two civil rights violations and one count of conspiring with other officers to cover up the beatings.
Sentencing for all of the defendants is scheduled for Sept. 23, 2013. Sanders faces a statutory maximum potential penalty of 20 years in prison.
“Mr. Sanders, by his statements, attempted to conceal that Rocrast Mack’s brutal death was unjustly caused by the corrections officers to whose care he had been entrusted,” said Deputy Assistant Attorney General for the Civil Rights Division Roy L. Austin Jr. “Such actions have no place in our corrections system and the Department of Justice will continue to vigorously prosecute those who commit and cover up such crimes.”
This case was investigated by the Mobile, Ala., Division of the FBI, in partnership with the Alabama Bureau of Investigation, and was prosecuted by Trial Attorney Patricia Sumner of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Jerusha Adams of the U.S. Attorney’s Office for the Middle District of Alabama.
Former Alabama Corrections Officer Pleads Guilty in A Criminal Civil Rights Investigation of the Beating Death of an InmateRead the Press Release
Montgomery, Alabama - Montgomery, AL – The Justice Department announced today that Joseph Sanders, 32, a former corrections officer of the Alabama Department of Corrections, pleaded guilty to obstructing justice in an investigation into the beating death of former inmate Rocrast Mack.
On August 4, 2010, 24-year-old Rocrast Mack was beaten by several corrections officers at Ventress Correctional Facility in Clayton, Alabama. He was repeatedly struck by a baton in an office in the prison, and several minutes later he was assaulted again in the medical unit of the prison when an officer stomped on Mack’s head several times. Mack died the following day in a Montgomery, Ala., hospital. Following Mack’s death, Sanders lied to investigators from the Department of Corrections to cover up the fact that Mack was unjustly and brutally beaten.
Two weeks ago, on June 25, a federal jury convicted Michael Smith, a former lieutenant at Ventress, of civil rights and obstruction of justice violations regarding this incident. Scottie Glenn, another former corrections officer at Ventress, pleaded guilty on Nov.18, 2011, to one count of violating the civil rights of Mack for his role in the incident and to one count of conspiring with other corrections officers to cover up the beatings. Matthew Davidson, another former corrections officer, pleaded guilty on Jan. 15, 2013, to two civil rights violations and one count of conspiring with other officers to cover up the beatings.
Sentencing for all of the defendants is scheduled for September 23, 2013. Sanders faces a maximum potential penalty of 20 years in prison.
“Mr. Sanders, by his statements, attempted to conceal that Rocrast Mack’s brutal death was unjustly caused by the corrections officers to whose care he had been entrusted,” said Deputy Assistant Attorney General for the Civil Rights Division Roy L. Austin Jr. “Such actions have no place in our corrections system and the Department of Justice will continue to vigorously prosecute those who commit and cover up such crimes.”
“Correction officers have an incredibly difficult job. Most perform their job ethically, without abusing the inmates,” said U.S. Attorney for the Middle District of Alabama, George L. Beck, Jr. “However, these officers allowed a restrained man to be savagely beaten and stomped and then tried to cover it up. There is no excuse for such behavior. Hopefully, this plea will bring the Mack family some peace in knowing that no one is above the law.”
“This investigation represents the FBI’s unwavering commitment to protect all citizens from those who violate and abuse their positions of trust,” stated Stephen F. Richardson, FBI Special Agent in Charge, Mobile Division. “Public servants are bound by their oath to serve and protect our communities and any violation of a person’s civil rights will be met with severe consequences.”
This case was investigated by the Mobile, Ala., Division of the FBI, in partnership with the Alabama Bureau of Investigation, and was prosecuted by Trial Attorney Patricia Sumner of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Jerusha Adams of the U.S. Attorney’s Office for the Middle District of Alabama.
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Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Final Defendant Sentenced in Operation Holiday ExpressRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick A. Miles, Jr. announced today that Samuel Aaron Collins of Gardena, California was sentenced by Chief U.S. District Judge Paul L. Malone to 11 years in prison for his participation in a cocaine conspiracy that trafficked thousands of kilograms of cocaine from California to Michigan for over a decade. Collins and eleven other co-conspirators were indicted by a Grand Jury in the Western District of Michigan on December 1, 2009. When law enforcement executed arrest warrants in California on December 2, 2009, Collins fled. Collins remained a fugitive from justice until a fugitive task force under the U.S. Marshals Service apprehended him in Aurora, Colorado in November 2012. On February 8, 2013, Collins pled guilty to three counts of using a telephone to facilitate the cocaine conspiracy. Each count carried a statutory maximum of four years imprisonment.
Collins, along with his childhood friend, drug kingpin Charles Jackson, Sr., began trafficking cocaine from California to Michigan in the mid-1990s. The two men were indicted in the Eastern District of Michigan in 1998. Collins pled guilty to interstate travel in aid of racketeering (“ITAR”) and served a five year prison sentence. Jackson, Sr. successfully eluded law enforcement for over a decade and remained a fugitive on the Eastern District of Michigan indictment. After Collins completed his ITAR sentence in 2004, he resumed cocaine trafficking with Jackson, Sr. Collins’ primary role was to manage the multiple couriers that transported the cocaine from California to Michigan, test the quality of the cocaine, prepare the cocaine for cross-country shipment, and drop off and pick up drug proceeds and transport vehicles on Jackson, Sr.’s behalf. Jackson, Sr. ultimately surrendered to law enforcement in 2010, after being indicted in the Western District of Michigan. Thereafter, he pled guilty to cocaine conspiracy and money laundering conspiracy charges and is presently serving a 27 year prison term.
Collins’ sentence marks the culmination of the Organized Crime and Drug Enforcement Task Force (“OCDETF”) investigation “Operation Holiday Express.” The investigation was led by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) and the Lansing Police Department. The investigation began with the bust of a street-level crack cocaine dealer in Lansing, Michigan in 2004. From there, investigators followed the drug and money trail to a Lansing street gang known as AHH DEE AHH, which was responsible for trafficking large quantities of cocaine, heroin, and marijuana between Detroit and Lansing from 2001 to 2006. Federal prosecution of AHH DEE AHH began in 2005, and resulted in the conviction of 27 members and associates. Investigators next identified AHH DEE AHH’s Detroit-based cocaine suppliers, who were prosecuted in 2007. The investigation turned westward in 2008 and resulted in the identification and prosecution of members and associates of two California-based drug trafficking organizations that supplied the cocaine being peddled in Detroit and Lansing. Charles Jackson, Sr. led one of these drug trafficking organizations with the assistance of Samuel Aaron Collins. The investigation revealed that over $176,000,000 of drug proceeds were generated by these two organizations. Including Collins, over forty defendants have been charged, convicted, and sentenced as a result of this investigation.
U.S. Attorney Miles praised the tenacity and dedication of the ATF and the Lansing Police Department. “The ATF, the Lansing Police Department, and the United States Attorney’s Office have worked hand-in-glove on this investigation for nearly a decade. Based on investigators’ dogged efforts, what began as the bust of a street-level crack cocaine dealer resulted in the prosecution and dismantlement of two drug trafficking organizations responsible for transporting thousands of kilograms of cocaine from California to Michigan for further redistribution throughout the Eastern and Western Districts of Michigan.” U.S. Attorney Miles also recognized the efforts of the U.S. Marshals Service in apprehending Collins, who remained a fugitive for nearly three years. “Those that decide to flee from justice should know that their day is coming. Ultimately, such individuals will be caught by the agency that investigated the case or by the U.S. Marshals Service.”
ATF Acting Special Agent in Charge Daryl McCrary commented: “This investigation is an example of ATF’s commitment and determination in making our communities safe. ATF’s Frontline strategy is our business model that addresses violent gun and narcotics trafficking crime. These accomplishments could not have been achieved without the collaboration and hard work of ATF, Lansing Police Department, and the United States Attorney’s Office.”
Lansing Police Chief Michael Yankowski stated: “The City of Lansing is highly appreciate of the partnerships it has established with the U.S. Attorney’s Office and the ATF. Only through this strong collaboration was it possible to dismantle such a large drug operation that crossed several states and required a multi-agency investigation. The City of Lansing and the country have benefitted greatly as a result of the elimination of these two drug trafficking organizations that terrorized our citizens with agony, gloom, and violent crime through the sale of narcotics. The City of Lansing, with the highest level of gratitude, thanks the U.S. Attorney’s Office for their tenacious, meticulous, and successful prosecution of these cases.”
Operation Holiday Express was prosecuted by Assistant U.S. Attorney Joel Fauson and former Assistant U.S. Attorney Brian Lennon.
END
Doctors Hospital of Augusta and Radiation Oncology Practice Pay More Than $1 Million to Resolve False Claims Act LitigationRead the Press Release
AUGUSTA, GA: Doctors Hospital of Augusta, LLC, which is owned and operated by the for-profit hospital chain, HCA Inc., and Radiation Oncology Associates, LLP, of Augusta, Georgia, have agreed to pay the United States a total of $1,020,000 to settle allegations that they submitted or caused the submission of false claims to the Medicare and TRICARE programs for certain radiation oncology procedures that were allegedly performed without the requisite level of physician supervision.
The civil settlement resolves allegations that were originally part of a federal lawsuit unsealed on July 3, 2013. The lawsuit was filed under the whistleblower provisions of the False Claims Act.
The case was investigated by Special Agent Ryan S. Coble, Department of Health and Human Services, Office of Investigations; Special Agent Randy J. Temples, Department of Defense, Defense Criminal Investigative Services; and Investigator Kimberly Reinken of the United States Attorney’s Office, Southern District of Georgia. The United States was represented by Assistant United States Attorney Scott R. Grubman.
For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Blackfoot Man Sentenced for Distributing MethRead the Press Release
POCATELLO – Ernesto Guerrero, 35, of Blackfoot, Idaho, was sentenced today in United States District Court to 60 months in prison for distribution of five grams or more of actual methamphetamine, U.S. Attorney Wendy J. Olson announced. U.S. District Judge Edward J. Lodge also ordered Guerrero to serve three years of supervised release. He pleaded guilty to the charge on March 18, 2013.
According to the plea agreement, on August 23, 2011, Guerrero arranged for and sold more than five grams of actual methamphetamine to another individual in exchange for $1,400. The distribution took place near Bannock and Truchot Roads in Fort Hall, Idaho. Guerrero admitted to knowing the substance he distributed was methamphetamine.
The case was investigated by Idaho State Police and the Fort Hall Police Department.
Armed Career Criminal Sentenced to 180 Months for Weapons and Drugs ChargesRead the Press Release
WILIMINGTON - United States Attorney Thomas G. Walker announced that in federal court on July 2, 2013 JOHN ALBRITTON, 64, of Chocowinity,, North Carolina, was sentenced by Senior United States District Judge James C. Fox to 180 months imprisonment and five years of supervised release for one count of Possession of Firearms and Ammunition by a Felon, in violation of Title 18, United States Code, Sections 922(g)(1) and 924 and two counts of Distributing a Quantity of Cocaine Base (Crack), in violation of Title 21, United States Code, Section 841(a)(1). In addition, the Court Ordered the Forfeiture of three shotguns and ammunition and one rifle.
On March 8, 2013 ALBRITTON was found guilty, following a three day trial in Wilmington, North Carolina of distributing a quantify of cocaine base (crack) on June 2, 2010 and May 25, 2010 and of possessing four firearms and ammunition on June 4, 2010.
After a joint investigation conducted by the Beaufort County Sheriff’s Office (BCSO) in Washington, North Carolina and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in Wilmington, North Carolina, law enforcement established that ALBRITTON operated an illicit business, Lil’ John’s Club, from a building adjacent to his residence. At the club, patrons purchased alcohol and drugs from ALBRITTON, activity which dated from early 2008 and included numerous citizen complaints to BCSO for noise ordinance violations and assaults.
Assistant United States Attorney Thomas B. Murphy prosecuted the case.
Akron Man Sentenced to 10 Years in Prison for Leading Mortgage Fraud Scheme That Resulted in $36 Million LossRead the Press Release
An Akron man was sentenced to 10 years in prison for leading massive mortgage fraud schemes in Ohio and Florida, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The restitution owed by Jack R. Coppernger, age 50, will be determined later this year. The government has asked for $35 million.
More than 40 people have been found guilty of crimes for their various roles in the mortgage fraud, which has led to losses of more than $36 million.
“This defendant led a ring whose crimes covered two states and resulted in losses of tens of millions of dollars,” Dettelbach said. “Mortgage fraud crimes devastate entire neighborhoods and communities.”
In delivering his sentence, U.S. District Judge John Adams said to Coppenger: “This was all greed. This was all planned, this scam and scheme. You knew and you had to know when this house of cards began to fall. You’re still out looking for new people to prey on.”
Coppenger previously pleaded guilty to two counts of conspiracy.
In the first count, Coppenger conspired to commit bank fraud and to make false statements to influence a bank to make a loan in connection with a mortgage fraud scheme involving property in the Panama City, Florida area, resulting in approximately a $36 million loss.
In the second count, Coppenger conspired to defraud the United States by impairing and impeding the ability of the I.R.S to assess Coppenger’s taxes in 2006 by concealing funds Coppenger received from a land “flip” conducted by Andrew Norman and Jason Herceg.
Norman and Herceg were both recently sentenced to 40 months in prison and ordered to pay $14 million in restitution.
According to court documents, they operated a company in Stow under the name of V.P. Equity LLC and, with Coppenger, procured “straw buyers” and submitted false loan documents to banks to purchase Coppenger’s lots in Florida (which had already been inflated in value as part of a land flip) in a mortgage fraud scheme.
Coppenger, with assistance from Herceg and Norman, perpetrated a large mortgage fraud scheme involving numerous straw buyers primarily from the Akron, Hartville, and Mentor areas. These straw buyers essentially sold their good credit scores to Coppenger in order for Coppenger to secure loans, through straw buyers’ names, for properties in Florida. Coppenger promised the straw buyers that if they signed the loan application and paperwork, Coppenger would pay them an inducement amount.
Coppenger then promised the straw buyers that he would make all the mortgage payments for the property and would make any down payments that were necessary, and that, once the property was developed and sold, they would split the profits equally.
Ultimately, Coppenger failed to make the mortgage payments on these loans, resulting in a loss of approximately $36 million, according to court documents.
Herceg and Norman defrauded two elderly purchasers by selling them a Florida property for $7 million. Moments before this sale, Herceg and Norman bought the property through their partnership, 104 Investments, from the original seller and inflated its value by approximately $2.6 million. Herceg and Norman then sold this property to these elderly purchasers, who were never told of the last minute “flip”, or that they were actually buying the land from Herceg, Norman, and 104 Investments. Herceg and Norman, and their 104 Investments business partner, Robert Jason Workman, received approximately $2.6 million from this sale which they then funneled portions of the proceeds out to themselves which included a $690,000 to Coppenger as payment for locating the property. Subsequently, Norman, Herceg, and Workman fraudulently deducted the money they gave to Coppenger as a business expense.
Coppenger was also conspired with business partner Kathleen A. Fada-Murray and her husband, Willliam Murray, to defraud the United States by concealing from the I.R.S. their receipt of monies from the fraudulent land flip. William Murray and Fada-Murray were not involved in the fraud against the elderly purchasers but were owed a return on her investment in Coppenger’s company, SMB&A. Once Fada-Murray became aware that Coppenger had received $690,000 as a result of the fraud in count one, she took steps to obtain some of this money herself, her husband, and others, and conspired with Coppenger to conceal their receipt of these funds from the I.R.S. by transferring funds into and out of accounts with corporate names, and out of an account in the name of Coppenger and his wife, characterizing these funds as a repayment of a loan, and using these funds to pay for Fada-Murray’s personal expenses, including online gambling debts, credit card payments, car payments, and federal and state taxes, as well as for personal expenses of Coppenger, including carpeting, car payments, and the payment of business expenses to keep the mortgage fraud scheme going.
Both Fada-Murray and William Murray pleaded guilty to their roles in this scheme. William Murray was also charged with recruiting two straw buyers for Coppenger in this scheme. Fada-Murray was sentenced to five years probation and ordered to pay back taxes while William Murray was sentenced to two years in prison and ordered to pay $450,440 in restitution. Workman was sentenced to six months in prison and ordered to pay $77,000.
Thus far, 37 straw buyers have pleaded guilty to a charged of conspiracy to commit loan fraud and bank fraud. All have been sentenced or are awaiting sentencing.
The case is being prosecuted by Assistant U.S. Attorneys Christian H. Stickan and Henry F. DeBaggis, following investigation by agents of the IRS-CI and FBI, Akron Office.
28 month prison sentence for Anchorage Woman for role in prison tax refund conspiraciesRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Anchorage resident was sentenced to prison for convictions of conspiracy to defraud the government and mail fraud.
Helen Delores Maloney, 45, of Anchorage, Alaska, was sentenced to 28 months in prison on July 2, 2013. Maloney pled guilty in April 2013 to conspiracy to defraud the government regarding false income tax refund claims and mail fraud. In addition to her prison sentence, a money judgment of $17,719 was entered against Maloney. She was also ordered to forfeit $23,160 seized from a residence and to pay restitution of $95,568.
According to court documents, Maloney was involved with two conspiracies between July 2009 and January 2012. The objective of both conspiracies was to obtain refunds by filing fraudulent income tax returns. Both schemes involved co-conspirators and victims who were inmates at correctional facilities.
Court documents revealed that the first conspiracy Maloney was involved in occurred between July 2009 and May 2011, when Maloney, co-conspirator John Koesterman, and others, prepared and submitted approximately 55 false tax returns claiming refunds of over $275,000. Koesterman was later indicted.
Court documents further indicate that the second conspiracy occurred between July 2010 and January 2012, when Maloney and co-conspirators Steven James McComb, Michael Lee Sexton, and Paulando Ramone Williams prepared and submitted approximately 21 false tax returns claiming refunds of over $51,000. Maloney submitted change of address forms for 20 victims of the scheme for whom her co-conspirators then submitted false tax returns, causing tax refund checks and other IRS correspondence to be mailed to her residence.
Maloney, McComb, Williams, and Sexton were indicted by a federal grand jury in February 2013, for conspiracy to defraud the government with respect to false claims; mail fraud; and aggravated identity theft. Their current status is as follows:
- McComb plead guilty to conspiracy to defraud the government with respect to claims, mail fraud, and aggravated identity theft on June 6, 2013, and is scheduled to be sentenced on August 22, 2013;
- Williams is scheduled to go to trial on September 23, 2013;
- Koesterman is scheduled to go to trial on August 19, 2013;
- Sexton is a fugitive.
Regarding Koesterman, Williams, and Sexton, an indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Ms. Loeffler commends the Internal Revenue Service-Criminal Investigation Division, for conducting the investigation leading to Maloney’s successful prosecution.
10th Street Gang Member Sentenced on RICO ChargeRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Saul Santana, 26, of Buffalo, N.Y., who was convicted of Racketeering Influenced Corrupt Organizations (RICO) Conspiracy, was sentenced by U.S. District Judge Richard J. Arcara to 324 months in prison.
Assistant U.S. Attorney Joseph M. Tripi, who handled the case, stated that the defendant was a member of the 10th Street Gang, a criminal enterprise engaged in racketeering activity in Western New York. As part of his involvement in the 10th Street Gang, Santana shot and killed rival gang member Anthony Colon on June 26, 2009 in broad daylight. In addition, the defendant conspired to distribute cocaine, cocaine base, marijuana, and other controlled substances on the West Side of Buffalo as part of the affairs of the 10th Street Gang. Santana also possessed various firearms and guarded 10th Street territory and routinely resorted to violence to ensure that no rival gang members or narcotics dealers encroached upon their territory.
"This significant sentence should send a strong message to other groups or individuals that committing violence will not be tolerated," said U.S. Attorney Hochul. "Our Office will continue to work closely with our law enforcement partners to bring to justice those who attempt to hold our community hostage with such acts or through trafficking illegal narcotics."
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation, under the direction of Richard M. Frankel, Acting Special Agent in Charge, the New York State Police, under the direction of Major Michael Cerretto, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
6 July 2013
Man Sentenced to over 11 Years in Federal Prison for Robbing Local Jewelry Store with Stolen HandgunRead the Press Release
LAS VEGAS, Nev. - A man who stole a handgun from his brother and used it to rob a local jewelry store, has been sentenced to 140 months in prison, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
John James Ericson, 33, of Las Vegas, was sentenced on Tuesday, July 2, 2013, by U.S. District Judge Andrew P. Gordon. Ericson pleaded guilty on March 25, 2013, to one count of interference with commerce by robbery.
On Oct. 10, 2012, at approximately 1:20 pm, Ericson went into a local jewelry store, approached the male owner, and stated he was looking for engagement rings. When the jewelry store owner opened the jewelry case to show Ericson some rings, Ericson produced a semi-automatic handgun and threatened him. Ericson then stole approximately $35,000 in jewelry from the open case and fled on foot. Because of statements Ericson had made during the robbery, law enforcement officials were able to identify Ericson, and he was arrested later the same day of the robbery. Law enforcement officials also determined that the handgun Ericson used during the robbery had been reported stolen by Ericson’s brother, who is an officer with the Las Vegas Metropolitan Police Department.
Ericson’s sentence was increased because he had several prior felony convictions in Florida for drug trafficking and possession.
The case was brought under DOJ’s Project Safe Neighborhoods (PSN) initiative, a nationwide commitment to reduce gun and gang crime in America.
The case was investigated by the FBI and Las Vegas Metropolitan Police Department, as part of the FBI’s Safe Streets Task Force, and prosecuted by Assistant U.S. Attorney Cristina D. Silva.
5 July 2013
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS:
James L. Williams, 45, of Kankakee, Illinois, was sentenced by Senior District Judge James Moody to 87 months imprisonment, restitution of $284,218.29 and 3 years of supervised release after pleading guilty to the felony offense of the armed bank robbery of Kentland Bank in Lake Village, Indiana.This case was the result of an investigation by the Federal Bureau of Investigation and the Newton County Police Department.This case was prosecuted by Assistant United States Attorney David Nozick.
Johana Jatzhiry Velazquez, 29, a Mexican national residing in Rensselaer, Indiana, was sentenced by District Judge Joseph Van Bokkelen to time already served and 2 years of supervised release after pleading guilty to the felony offense of conspiracy to possess with the intent to distribute cocaine.According to documents filed by the government in this case, Velazquez was responsible for assisting with the transportation of a significant amount of cocaine.This case was the result of an investigation by the Drug Enforcement Administration and the Illinois State Police.This case was prosecuted by Assistant United States Attorney Joshua Kolar.
Imaru Jones, 29, of Griffith, Indiana, was sentenced by Senior District Judge James Moody to 2 years of probation to include 8 months of home detention after pleading guilty to the felony offense of distribution of marijuana.According to documents filed by the government in this case, the offense involved the Jones selling approximately 8,642 grams of marijuana over the course of three sales to a confidential informant. This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Dean Lanter.
Miguel Villegas-Marin, 54, of Indianapolis, Indiana, a defendant in the case US v Montoya Gonzalez et al., was sentenced by Senior District Judge James Moody to 37 months imprisonment and 1 year of supervised release after pleading guilty to the felony offense of conspiracy to possess with the intent to distribute marijuana.According to documents filed by the government in this case, Villegas-Maris was involved in picking up a load of marijuana that was transported from Texas.This case was the result of an investigation by the Drug Enforcement Administration.This case was prosecuted by Assistant United States Attorney Joshua Kolar.
Robert Thompson, Jr., 25, of Gary, Indiana, was sentenced by Senior District Judge James Moody to 37 months imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm and ammunition by a convicted felon.According to documents filed by the government in this case, an AK-47 rifle was found in a vehicle occupies by Thompson during a traffic stop.Thompson has prior convictions for dealing in cocaine in 2008 and a controlled substance crime in 2008.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Gary Police Department.This case was prosecuted by Assistant United States Attorney Nicholas Padilla.
William Weigand, 43, of Portage, Indiana, was sentenced by District Judge Joseph Van Bokkelen to 6 months imprisonment, six months of home detention and 1 year of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.According to documents filed by the government in this case, Weigand has a prior conviction for burglary in 1989.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation and the Indiana State Police.This case was prosecuted by Assistant United States Attorney David Nozick.
Linda Lyrla, 58, of Demotte, Indiana, was sentenced by Senior District Judge James Moody to 46 months imprisonment and 3 years of supervised release after pleading guilty to the felony offenses of mail fraud and tax evasion.Lyrla also was ordered to pay restitution totaling $1,426,057.85 to the victims and forfeiture of $1,384,600.00.According to documents filed by the government in this case, Lylra embezzled funds from her employer, Alliance Technology Group.In 2001, Lyrla began her scheme to siphon money by creating an internal fund for a credit card.During the next nine years, she used the credit card for personal purchases and paid the balances with company funds.She used the money to fund an extravagant lifestyle and did not pay income taxes to the IRS on her ill-gotten income. This case was the result of an investigation by the Internal Revenue Service and the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Gary Bell.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Ron Luthe, 46, of Fort Wayne, Indiana, pled guilty before Magistrate Judge Roger B. Cosbey to the felony offense of being a felon in possession of a firearm. Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney Tina Nommay.
Rico Parrish, 27, of Warsaw, Indiana, pled guilty before Magistrate Judge Roger B. Cosbey to the felony offense of being a felon in possession of a firearm. Magistrate Cosbey is recommending that the district court accept the tendered guilty plea. Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case is being prosecuted by Assistant United States Attorney Anthony Gellar.
Juan Olivo, 36, of Milford, Indiana, pled guilty before Magistrate Judge Roger B. Cosbey to the felony offense of knowingly or intentionally distributing heroin. Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorney Anthony Geller.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Brandon Terry, 29, of Fort Wayne, Indiana, was sentenced by Judge Theresa L. Springmann to serve 37 months imprisonment (time served & ordered released) and 3 years supervised release after pleading guilty to the felony offense of possession with intent to distribute five (5) grams or more of crack cocaine.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department.This case was prosecuted by Assistant United States Attorney Tina Nommay.
U.S.Postal Service Mail Carrier Convicted for Involvement <br /> with Stolen Identity Refund Fraud ConspiracyRead the Press Release
On July 3, 2013, a jury found Vernon Harrison, of Montgomery, Ala., guilty of one count of conspiring to file false claims, eight counts of mail fraud, eight counts of aggravated identity theft and six counts of embezzlement from the U.S. mail, the Justice Department, the Internal Revenue Service (IRS) and the U.S. Postal Service, Office of the Inspector General (OIG), announced today.
According to the evidence presented at the trial, Harrison was a U.S. Postal Service mail carrier who was part of a stolen identity refund fraud conspiracy. Members of the conspiracy used stolen identities to file false tax returns from various locations, including houses and hotels around Birmingham, Ala. and Montgomery. They then had the fraudulently obtained tax refunds generated by those returns sent to debit cards which were subsequently mailed to addresses on Harrison’s postal route in Montgomery. In exchange for cash, Harrison stole the debit cards from the mail and provided them to a co-conspirator. Harrison stole, at a minimum, over 100 debit cards from the mail for his co-conspirators.As was shown at trial, federal agents uncovered substantial evidence of the conspiracy during the execution of search warrants at locations in Montgomery and near Birmingham, including over a hundred envelopes for debit cards that had been mailed to addresses on Harrison’s postal route. Soon after, agents also conducted surveillance on Harrison and observed him failing to deliver Turbo Tax cards that were in the mail.
Harrison faces up to 10 years in prison for the conspiracy count, 20 years for each mail fraud count, five years for each mail embezzlement count, and a mandatory two-year sentence for the aggravated identity theft counts. In total, Harrison could be sentenced to up to 216 years in prison. Harrison also could be subject to fines, forfeiture, and mandatory restitution.
Kathryn Keneally, Assistant Attorney General for the Justice Department's Tax Division, commended the efforts of special agents of IRS - Criminal Investigation and the U.S. Postal Service, OIG, who investigated the case, and Tax Division Trial Attorneys Jason Poole and Michael Boteler, who prosecuted the case.
Additional information about the Justice Department’s Tax Division and its enforcement efforts may be found at www.justice.gov/tax .U.S. Postal Service Mail Carrier Convicted for Involvement with Stolen Identity Refund Fraud ConspiracyRead the Press Release
WASHINGTON – On July 3, 2013, a jury found Vernon Harrison, of Montgomery, Ala., guilty of one count of conspiring to file false claims, eight counts of mail fraud, eight counts of aggravated identity theft and six counts of embezzlement from the U.S. mail, the Justice Department, the Internal Revenue Service (IRS) and the U.S. Postal Service, Office of the Inspector General (OIG), announced today.
According to the evidence presented at the trial, Harrison was a U.S. Postal Service mail carrier who was part of a stolen identity refund fraud conspiracy. Members of the conspiracy used stolen identities to file false tax returns from various locations, including houses and hotels around Birmingham, Ala. and Montgomery. They then had the fraudulently obtained tax refunds generated by those returns sent to debit cards which were subsequently mailed to addresses on Harrison's postal route in Montgomery. In exchange for cash, Harrison stole the debit cards from the mail and provided them to a co-conspirator. Harrison stole, at a minimum, over 100 debit cards from the mail for his co-conspirators.
As was shown at trial, federal agents uncovered substantial evidence of the conspiracy during the execution of search warrants at locations in Montgomery and near Birmingham, including over a hundred envelopes for debit cards that had been mailed to addresses on Harrison's postal route. Soon after, agents also conducted surveillance on Harrison and observed him failing to deliver Turbo Tax cards that were in the mail.
Harrison faces up to 10 years in prison for the conspiracy count, 20 years for each mail fraud count, five years for each mail embezzlement count, and a mandatory two-year sentence for the aggravated identity theft counts. In total, Harrison could be sentenced to up to 216 years in prison. Harrison also could be subject to fines, forfeiture, and mandatory restitution.
Kathryn Keneally, Assistant Attorney General for the Justice Department's Tax Division, commended the efforts of special agents of IRS - Criminal Investigation and the U.S. Postal Service, OIG, who investigated the case, and Tax Division Trial Attorneys Jason Poole and Michael Boteler, who prosecuted the case.
Additional information about the Justice Department's Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
U.S. Postal Service Mail Carrier Convicted for Involvement with Stolen Identity Refund Fraud ConspiracyRead the Press Release
Montgomery, Alabama - On July 3, 2013, a jury found Vernon Harrison, of Montgomery, Ala., guilty of one count of conspiring to file false claims, eight counts of mail fraud, eight counts of aggravated identity theft and six counts of embezzlement from the U.S. mail, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama.
According to the evidence presented at the trial, Harrison was a U.S. Postal Service mail carrier who was part of a stolen identity refund fraud conspiracy. Members of the conspiracy used stolen identities to file false tax returns from various locations, including houses and hotels around Birmingham, Ala. and Montgomery. They then had the fraudulently obtained tax refunds generated by those returns sent to debit cards which were subsequently mailed to addresses on Harrison’s postal route in Montgomery. In exchange for cash, Harrison stole the debit cards from the mail and provided them to a co-conspirator. Harrison stole, at a minimum, over 100 debit cards from the mail for his co-conspirators.
As was shown at trial, federal agents uncovered substantial evidence of the conspiracy during the execution of search warrants at locations in Montgomery and near Birmingham, including over a hundred envelopes for debit cards that had been mailed to addresses on Harrison’s postal route. Soon after, agents also conducted surveillance on Harrison and observed him failing to deliver Turbo Tax cards that were in the mail.
“We trust our mail carriers to deliver, not steal our mail,” stated U.S. Attorney Beck. “Harrison abused that trust. Harrison and his criminal organization not only stole innocent people’s identities, filed fraudulent tax returns and received tax refunds not owed to them, but they used Harrison’s position as a mail carrier to steal these debit cards from the mail. This criminal behavior will not be tolerated and will be prosecuted to the fullest extent of the law.”
Harrison faces up to 10 years in prison for the conspiracy count, 20 years for each mail fraud count, five years for each mail embezzlement count, and a mandatory two-year sentence for the aggravated identity theft counts. In total, Harrison could be sentenced to up to 216 years in prison. Harrison also could be subject to fines, forfeiture, and mandatory restitution.
U.S. Attorney Beck commended the efforts of special agents of IRS - Criminal Investigation and the U.S. Postal Service, OIG, who investigated the case, and Tax Division Trial Attorneys Jason Poole and Michael Boteler, who prosecuted the case.
Additional information about the Justice Department’s Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617ICE deports man wanted for kidnapping and murder in El SalvadorRead the Press Release
WASHINGTON - A Salvadoran national, who was previously removed from the United States and who is wanted in his native country for homicide, aggravated kidnapping and robbery, was turned over to authorities in El Salvador Friday by U.S. Immigration and Customs Enforcement's (ICE) Enforcement and Removal Operations (ERO).
Melvin Noe Lazo-Sanchez aka Melvin Noe Sanchez-Izaguirre, 34, a citizen of El Salvador and Honduras, was flown to El Salvador July 5 onboard a charter flight coordinated by ICE's Air Operations (IAO) Unit. Upon arrival, the suspect was turned over to officials from the El Salvadoran Civilian National Police (PNC).
“Mr. Lazo has been deported to El Salvador where he will now face a criminal court to answer to his charges, thanks to a dedicated group of deportation officers and ICE attorneys who serve to protect our communities here in Virginia,” said M. Yvonne Evans, field office director for ERO Washington. “Because of our far reaching impact, our officers maintain a global vision and are proud when justice is served, no matter where in the world.”
Lazo-Sanchez was arrested March 15 outside his residence in Manassas, Va., by officers of ERO Washington's fugitive operations team. An ERO officer assigned to INTERPOL Washington notified the team of an active Red Notice on Sanchez by law enforcement in San Salvador.
Sanchez illegally re-entered the United States after ICE removed him to Honduras in June 2012. He evaded extradition from Honduras to El Salvador when he was removed in 2012 because the last name he used on his Honduran identity differed from his El Salvadorian identity. Sanchez was ordered removed from the United States to Honduras or El Salvador by an immigration judge May 2.
The deportation of fugitive Melvin Lazo-Sanchez is another example of expanded bi-national cooperation to identify, arrest and repatriate Salvadoran criminal suspects who have fled to the United States to avoid prosecution. ICE officers are working closely with the PNC, the Salvadoran National INTERPOL Office and Salvadoran Immigration as part of this effort. In the first nine months of fiscal year 2013, the PNC executed more than 101 criminal arrest warrants with fugitives being returned to El Salvador aboard IAO removal flights. Many of those arrests involved homicide-related charges or other violent crimes.
Since Oct. 1, 2009, ERO has removed more than 640 foreign fugitives from the United States who were being sought in their native countries for serious crimes, including kidnapping, rape and murder. ERO works with the Office of International Affairs for ICE's Homeland Security Investigations' (HSI) foreign consular offices in the United States and INTERPOL to identify foreign fugitives illegally present in the country.
This removal was coordinated with HSI El Salvador, ICE's Office of Chief Counsel in Arlington, the Consulate of El Salvador and INTERPOL Washington.
Florida Telemarketer Pleads Guilty for His Role in Timeshare ScamRead the Press Release
On July 1, 2013, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that Robert Thomas, 36, of Lake Worth, Florida, pled guilty to a one-count information. Sentencing has been set for October 28, 2013. The charge arose out of a telemarketing scam which operated in Palm Beach County, Florida, that bilked over 22,000 victims of $30 million dollars. Consumers were victimized in all fifty states, the District of Columbia and Puerto Rico, all ten Canadian provinces and the Northwest Territory of Canada. There were at least 54 victims in twenty seven (27) of the thirty eight (38) counties comprising the Southern District of Illinois.
Mr. Thomas was a telemarketer who worked for Creative Vacation Solutions and Universal Marketing Solutions and conducted a telemarketing timeshare resale scheme targeting timeshare owners throughout the United States and Canada. Creative Vacation Solutions and Universal Marketing Solutions falsely represented that they had found buyers for the consumers’ timeshare interests and solicited fees of up to several thousand dollars from each consumer in purported pre-paid closing costs and related expenses. In fact, the purported sales did not occur, closings were not scheduled as was often represented, and Creative Vacation Solutions and Universal Marketing Solutions did not successfully sell any consumer’s timeshare interest. The companies devoted essentially no resources to marketing their clients’ timeshare interests and simply pocketed the fees.
Multiple others have been charged in connection with this scam. On June 30, 2011, Jennifer Kirk pled guilty to a criminal information. She was sentenced on January 9, 2012 to over 16 years in prison and five years’ supervised release. On August 17, 2011, a federal grand jury in East St. Louis charged Steve Folan, Ryan Brazel, and Brian Morris in a multi-count indictment for their involvement in the alleged scheme. Folan, Brazel, and Morris pled guilty. Brazel was sentenced on June 29, 2012 to 121 months in prison and three years’ supervised release. Folan was sentenced to 60 months in prison and three years’ supervised release. Morris was sentenced to 168 months and five years’ supervised release. Joel Intravaia pled guilty to conspiracy in an information filed on August 19, 2011. He was sentenced to 60 months in prison and three years’ supervised release on December 9, 2011. Ralph Johnson entered a guilty plea to conspiracy charges filed in a criminal information on September 8, 2011. He was sentenced on December 16, 2011 to 46 months in prison and two years’ supervised release. On September 21, 2011, Kenneth Foote and Joseph Grizzanti were indicted by a federal grand jury in East St. Louis. On October 7, 2011, each filed a consent to transfer their case to the U.S. District Court for the Southern District of Florida in order to plead guilty to the charges there. On May 11, 2012 in the Southern District of Florida, Foote was sentenced to 60 months in prison and Grizzanti to 72 months, respectively. Jeffrey Tracey Fields was charged with conspiracy in a criminal information on October 25, 2011. He filed a consent to transfer his case to the U.S. District Court for the Southern District of Florida in order to plead guilty to the charges there. Fields was sentenced to 101 months in prison. John Thomas Egan pled guilty to conspiracy charges filed in a criminal information on January 6, 2012. Egan was sentenced to 90 months in prison. On January 20, 2012 David Johnson and Erin Todd were indicted by a federal grand jury in East St. Louis. Johnson pled guilty and received 36 months in prison. Todd’s case was tried before a jury in September 2012. Todd was found guilty and sentenced to 42 months in prison. In March 2012, John Robert Eddy, Cloyd James Holmes, Jr., Gino Christopher Marquez, and Donald Myers were indicted by a federal grand jury in East St. Louis for conspiracy to commit wire fraud and mail fraud. Eddy pled guilty and received 60 months in prison; Holmes pled guilty and is awaiting sentencing; Marquez pled guilty and received 70 months in prison; and Myers pled guilty and received 30 months in prison. In April 2012, Daniel L. Gregg, Joshua G. Schneidau, and Lacey Marie Stone were indicted for conspiracy to commit wire fraud and mail fraud. Gregg pled guilty and received 27 months in prison; Schneidau pled guilty and received 60 months in prison; and Stone pled guilty and is awaiting sentencing. In May 2012, Anthony Colon, Troy Dye, Chris Gilkey, Marc Martinangelo, and Robert Santiago were indicted for conspiracy to commit wire fraud and mail fraud. Colon pled guilty and received 70 months in prison; Dye pled guilty and received 41 months in prison; Gilkey pled guilty and received 27 months in prison; Martinangelo pled guilty and received 1 year plus 1 day in prison; and Santiago pled guilty and received 20 months in prison. In July 2012, Daniel James Ferrara and Robert Schmucker were indicted for conspiracy to commit wire fraud and mail fraud. Both Ferrara and Schmucker pled guilty and are awaiting sentencing. On May 31, 2013, Hank Quimby pled guilty to a criminal information. He is awaiting sentencing. On June 13, 2013, Harrison Pomerantz pled guilty to a criminal information. He, too, is waiting to be sentenced.
The criminal charges follow an investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service, the Florida Attorney General’s Office, the Florida Department of Agriculture and Consumer Services, and the Boynton Beach Florida Police Department. The prosecution of the case is being handled by Assistant U.S. Attorneys Bruce E. Reppert, Katherine L. Lewis, and Nathan D. Stump, and U.S. Attorney Stephen R. Wigginton.