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2 July 2013
Mexican National Sentenced for Drug Crime in Connection with Aryan Knights InvestigationRead the Press Release
BOISE – U.S. Attorney Wendy J. Olson announced today that Rigoberto Carrasco, 37, a Mexican national, was sentenced by U.S. District Judge Edward J. Lodge to 110 months in prison followed by five years of supervised release for conspiring to distribute methamphetamine.
Carrasco pleaded guilty to the charge on April 10, 2013. In court, Carrasco admitted that he became involved in the ongoing distribution of methamphetamine and that he agreed to assist with that distribution. Carrasco admitted that he and others were bringing methamphetamine into Idaho from outside the state. Carrasco sold the methamphetamine to other co-defendants who then distributed the methamphetamine in Idaho. Five other defendants charged in the conspiracy have already been sentenced, including Jesse Delgado, to 168 months; Lisa Samayoa, to 135 months; Nina Lucas, to 130 months; Darin Melton, to 87 months; and Omar Riveroll-Hernandez, to 60 months in federal prison.
Carrasco’s case is part of the Aryan Knights investigation in which 23 individuals were charged as a result of a long-term investigation by the Treasure Valley Metro Violent Crime Task Force. The investigation began when the task force focused on illegal drug distribution by the “Aryan Knights,” a gang active both in prison and on the streets throughout Idaho. Through the investigation, law enforcement agents identified Aryan Knights gang members who were trafficking methamphetamine, as well as associates of the gang who were the source of that methamphetamine.
All 23 defendants have pleaded guilty, 18 have been sentenced, and five are awaiting sentencing.
The Treasure Valley Metro Violent Crimes Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. The joint investigation also included the Organized Crime and Drug Enforcement Task Force (OCDETF), a cooperative law enforcement effort of the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service.
The Aryan Knights cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Massachusetts Man Pleads Guilty to Receiving Child Pornography and Providing Obscene Material to A ChildRead the Press Release
AUGUSTA, GA – Christopher Ceolinski, 38, of Blackstone, Massachusetts pled guilty today before United States District Court J. Randal Hall for receiving child pornography and transferring obscene material to a person under the age of 16. Ceolinski faces a mandatory minimum of five years imprisonment and a maximum of thirty years on the two charges. He will be required to register as a sex offender, and will be subject to a term of supervised release of between five years and life. Following the guilty plea, Ceolinski was returned to the custody of the United States Marshal Service to await sentencing.According to the evidence presented at Ceolinski’s plea hearing, in July 2011, Ceolinski, initially posing as a 20-year-old, sent an unsolicited friend request to a 15-year-old girl in Lincolnton, Georgia, which was accepted. The two began regular communications, which quickly became sexual in nature. Beginning in August 2011, Ceolinski, who had admitted his true age of 36, sent obscene images of himself to the girl over the Internet and through messaging systems. Several months later, he also sent an iPod Touch to the girl so she could send sexually explicit images of herself to him, as he requested. Ultimately, Ceolinski traveled to Georgia to secretly meet with the girl. Some time later the girl’s mother became aware of the communications, and contacted law enforcement.
When Ceolinski was arrested in Massachusetts on a federal complaint filed in Augusta, his mobile phone was found to contain illegal images of the 15-year-old victim. Ceolinski admitted to Federal Bureau of Investigation agents the length and nature of his contact with the Lincolnton girl. Ceolinski was subsequently detained and transferred to Georgia to face the charges here.
United States Attorney Edward J. Tarver stated, “This Defendant used social networking sites to locate and prey on innocent children. This type of exploitation constitutes a serious and heinous crime that results in an immeasurable, long-lasting, impact on the child. There should be no doubt that the United States Attorney’s Office will prosecute those who promote and facilitate these crimes, as there is no higher priority within the Department of Justice than to protect our Nation’s children. ”
This case was brought as part of Project Safe Childhood, a U.S. Department of Justice initiative designed to protect children from online exploitation and abuse. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.The case was the result of an investigation conducted by the Lincoln County Sheriff’s Office and the Federal Bureau of Investigation. Assistant U.S. Attorney Nancy Greenwood prosecuted the case. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Maryland Man Sentenced to 24 ½-Year Prison Term for Two Attacks, Including A Beating That Led to Serious Injuries-Crimes Took Place Within About Three Hours Last Summer-Read the Press Release
WASHINGTON – Tommy T. Branch, 22, of Fort Washington, Md., was sentenced today to 24 ½ years in prison for a pair of attacks last summer, including one in which a man was severely beaten with a baseball bat, U.S. Attorney Ronald C. Machen Jr. announced.
Branch was found guilty by a jury on May 1, 2013, following a trial in the Superior Court of the District of Columbia, of charges of conspiracy, aggravated assault while armed, armed robbery, assault with intent to rob, and attempted credit card fraud. Upon completion of his prison term, Branch will be placed on 11 years of supervised release.
At today’s sentencing, the Honorable Robert I. Richter said that “nothing can undo the violence that Mr. Branch chose to unleash on that night last year,” adding that the defendant’s actions “showed a coldness of heart that all the remorse in the world cannot erase.”
According to the government’s evidence, Branch and two accomplices – Sunny B. Kuti and Michael Moore - decided on Aug. 17, 2012 to commit a robbery together. They drove to the Adams Morgan area of Northwest Washington in Branch’s car. When they could not identify a suitable target, they drove to Capitol Hill and parked down an alley next to Eastern Market.
Shortly after midnight, early in the morning of Aug. 18, 2012, the three men saw the victim, Thomas “T.C.” Maslin. Mr. Maslin was walking home and at the edge of a park near Independence and North Carolina Avenues SE. During the ensuing robbery, Mr. Maslin raised his hands and said that all he had was a phone and bank card. As the robbery continued, Kuti struck Mr. Maslin in the side of the head with a BB gun, temporarily stunning him. Moore pushed Mr. Maslin, and Branch struck him in the side of the head with a baseball bat.
Branch and his accomplices took Mr. Maslin’s iPhone, bank card, and keys. They then drove to a gas station in the 1200 block of Pennsylvania Avenue SE, a few blocks away from the robbery scene. Branch tried to use Mr. Maslin’s bank card to buy gasoline, but the card was refused because he did not know the cardholder’s zip code.
Following this attack, Branch, Kuti, and Moore drove to the Barry Farm area of Southeast Washington where they met a fourth man, Darrin L. Beal. They then set off for the Adams Morgan area to commit a second robbery. At about 3:20 a.m., while Beal remained in the car, Branch, Moore, and Kuti, while armed with a non-functioning BB gun that resembled a real handgun, targeted three victims in an alley off of the 1800 block of 18th Street NW, violently assaulting one victim and taking a cellphone, wallet, and set of keys from another.
Mr. Maslin was found, unconscious, by police at about 8:15 a.m. on Aug. 18, 2012, on the front porch of a rowhouse in the 700 block of North Carolina Avenue SE. He had a massive fracture to his skull and bleeding throughout the brain cavity due to the blow from the bat.
Moore, 19, of Washington, D.C., pled guilty to charges for his role in the crimes and is awaiting sentencing. Kuti, 18, of Washington, D.C., and Beal, 25, of Washington, D.C., are awaiting trial. Both have pled not guilty to charges.
“Throughout this process, our prosecutors have been overwhelmed by the number of citizens who have come forward to show support for T.C. Maslin and his young family,” said U.S. Attorney Machen. “That outpouring of support demonstrates the power of our community to come together and rise above the most brutal acts of violence. I hope that today's sentence will allow Mr. Maslin, his family, and the entire Capitol Hill community -- as well as the other two victims of this defendant's attacks -- to continue the healing process.”
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department (MPD). He also praised the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Thomas P. Swanton of the First District Prosecution team.
13-238Manhattan U.S. Attorney and FBI Assistant Director-In-Charge Announce Arrest of Former Vice President of High-End Jewelry Company for Stealing over $1 Million of JewelryRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), today announced the arrest of INGRID LEDERHAAS-OKUN, a former Vice President of Product Development at a high-end jewelry company, for stealing over $1.3 million worth of jewelry from her former employer. LEDERHAAS-OKUN was arrested this morning at her residence in Darien, Connecticut, and will be presented in Manhattan federal court later today before U.S. Magistrate Judge James C. Francis.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Ingrid Lederhaas-Okun went from a Vice President at a high-end jewelry company to jewel thief. She abused her access to valuable jewelry in order to steal and then resell over one million dollars’ worth of items that she falsely represented as her own, as the complaint describes. Her arrest shows that no matter how privileged their position in a company, employees who steal will face the full consequences of the law.”
FBI Assistant Director-in-Charge George Venizelos said: “As alleged, Ingrid Lederhaas-Okun took advantage of the access her employment afforded her to expensive jewelry. She allegedly stole numerous items, sold them for over a million dollars, then engaged in a series of lies in an attempt to cover up the theft. A privileged position in a prestigious company does not insulate a thief from arrest and prosecution.”
According to the allegations in the Complaint unsealed today in Manhattan federal court:
From at least January 2011 until February 2013, LEDERHAAS-OKUN worked as a Vice President of Product Development at the midtown Manhattan headquarters of one of the world’s premier high-end jewelers (the “Jewelry Company”). Her duties and responsibilities included ensuring that product designs could be manufactured and, to that end, she had authority to check out jewelry belonging to the Jewelry Company for work-related reasons, such as to provide the jewelry to potential manufacturers to determine the cost of production.
Between November 2012 and February 2013, LEDERHAAS-OKUN abused her position and authority at the Jewelry Company to check out over 165 pieces of jewelry with a retail value of over $1.2 million, including numerous diamond bracelets, platinum or gold diamond drop and hoop earrings, platinum diamond rings, and platinum and diamond pendants. She then sold some if not all of this jewelry for $1.3 million to another company, a leading international buyer and reseller of jewelry with an office in midtown Manhattan (the “Jewelry Reseller”). The Jewelry Reseller paid for the merchandise that LEDERHAAS-OKUN had stolen either by paying her or her husband, in transactions arranged either by LEDERHAAS-OKUN or a friend working on her behalf.
In addition to this jewelry, in November 2012, following an announcement by the Jewelry Company that it was going to undertake a full physical inventory review, LEDERHAAS-OKUN also reported that approximately $1.5 million worth of jewelry which she had checked out would have to be written off. However, none of that jewelry was ever returned to the Jewelry Company, contrary to the usual practice of accounting for inventory, such as damaged jewelry, that would have to be written off because it had been rendered unusable in some way.
To conceal her theft, LEDERHAAS-OKUN made repeated false statements to the Jewelry Company. For example, after her termination in February 2013, she told the Jewelry Company that she had only recently checked out the missing jewelry in anticipation of creating a PowerPoint presentation for her supervisor, and that a draft of the presentation could be found on her office computer. However, the missing pieces of jewelry had been checked out months earlier, her supervisor was unaware of any such presentation being worked on by LEDERHAAS-OKUN, and there was no draft presentation on her computer. In addition, LEDERHAAS-OKUN claimed the jewelry in question could be found in a white envelope in her office, but a search of her office shortly after her departure did not yield any white envelope.
LEDERHAAS-OKUN, 46, of Darien, Connecticut, is charged with one count of wire fraud, which carries a maximum penalty of 20 years in prison, and one count of interstate transportation of stolen property, which carries a maximum penalty of 10 years in prison.
Mr. Bharara praised the investigative work of the FBI. Mr. Bharara also noted the investigation is ongoing.
The prosecution of this case is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorney Rosemary Nidiry is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Lederhaas-Okun, Ingrid Complaint
Man Sentenced to Prison, Ordered to Pay Restitution for $1.3 Million Fraud Against His Business PartnersRead the Press Release
PITTSBURGH, Pa. - A Pittsburgh man has been sentenced in federal court to 71 months imprisonment, ordered to pay $1.3 million in restitution and ordered to undergo three years of supervised release on his conviction of mail fraud, United States Attorney David J. Hickton announced today.
Senior United States District Judge Alan N. Bloch imposed the sentence on Neale J. Misquitta, 48.
According to information presented to the court, the defendant engaged in a scheme to defraud the businesses of which he was a part owner by filing dozens of fraudulent expense reports and vouchers over a nearly three year period from late 2005 through 2008. The expense reports and vouchers included hundreds of claims for reimbursement of business expenses that were in fact personal expenses, most often related to the construction of a new home the defendant was building in Upper St. Clair. One of the defendant's former business partners testified that Misquitta's false claims and misrepresentations had resulted in a loss of more than $1,301,528 to Key Environmental, Inc. and Field and Technical Services, LLC. The Court found that this loss amount was substantiated by an accounting firm that was hired to determine how much Misqutta had stolen from his business partners. The evidence also showed that Misquitta processed reimbursement claims for money allegedly spent by use of his own personal checks when in fact the checks were never negotiated or cashed by the supposed recipients. Among the items that Misquitta falsely vouchered to his businesses were decorative stone for the exterior of his home, fixtures, tubs and shower components for the five bathrooms, a heated driveway, fireplaces, a geothermal heating and cooling system, a $4000 door for his wine cellar, the costs of the roof and nearly $60,000 worth of electrical work on his new home.
The Court specifically found that a document that Misquitta had tried to enter in to evidence, that supposedly showed that his partners were aware of and approved of his billing personal expenses to the businesses, was a fabricated document made up to support a defense that was contradicted by the evidence presented to the jury. The Court also noted that the jury specifically found that Misquitta had intended to defraud his business partners.
Assistant United States Attorney James R. Wilson prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Postal Inspection Service for the investigation leading to the successful prosecution of Misquitta.
Man Charged with Making False StatementsRead the Press Release
A grand jury returned a two-count indictment charging Cleven Thomas, aka Cleveland Thomas, age 69, with one count of making false statements in application for a passport and one count of making false statements to a federal agency, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that on or about January 28, 2013, Thomas knowingly and willfully made false statements on a passport application, including his failure to disclose his use of multiple birth dates and Social Security Account Numbers, his prior marriage, and his prior divorce.
The indictment also alleges that on or about May 30, 2013, Thomas made a material false statement to special agents of the United States Department of State, Bureau of Diplomatic Security in that he claimed his passport application was true and accurate.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Phillip J. Tripi, following investigation by agents of the United States Department of State, Bureau of Diplomatic Security.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Madison Resident Convicted of Drugs and Firearms OffensesRead the Press Release
TALLAHASSEE, FLORIDA– Johnny Curtis Bedgood, 46, of Madison, Florida was convicted today by a federal jury on charges that he possessed powder cocaine and more than 28 grams of crack cocaine with intent to distribute, that he possessed firearms in furtherance of the drug trafficking offense, and that he possessed firearms after felony convictions, according to the United States Attorney’s Office for the Northern District of Florida.
The charges against Bedgood were based upon a search warrant executed in Madison on August 16, 2012. Law enforcement seized more than 90 grams of crack cocaine, more than 100 grams of powder cocaine, two loaded handguns, drug ledgers, and a variety of drug paraphernalia from Bedgood’s Madison residence.
The search warrant was based upon a controlled buy of crack cocaine from Bedgood on August 1, 2012. During that deal, the informant made a video of Bedgood cooking powder cocaine into crack cocaine.
Officers seized a small amount of marijuana and $11,150 in cash when they arrested Bedgood on March 5, 2013, after Bedgood had been a fugitive for more than six months.
The two-day trial was held before United States District Judge Robert L. Hinkle. Sentencing is scheduled for September 26, 2013. Bedgood faces from ten years up to life in prison for the drug offense, a mandatory consecutive term from five years up to life in prison for possessing a firearm in furtherance of the drug offense, and from fifteen years up to life in prison for possession of a firearm by a convicted felon, as well as fines, terms of supervised release, and special monetary assessments.
United States Attorney Pamela C. Marsh, credited the successful prosecution to the joint efforts of the Madison County Sheriff’s Office, the Taylor County Sheriff’s Office, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the United States Marshal’s Service. Assistant U.S. Attorney Michael T. Simpson is prosecuting this case.Lexington Man Indicted on Child Pornography ChargesRead the Press Release
A federal grand jury returned a three-count indictment charging Peter J. Schmidt, age 26, of Lexington, Ohio, with producing, distributing and possessing child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges on or about July 7, 2006, and July 8, 2006, Schmidt used, persuaded, induced, enticed and coerced a minor, to engage in sexually explicit conduct, for the purpose of producing a visual depiction of such conduct, and such visual depiction was produced using materials that had been mailed, shipped, and transported in interstate and foreign.
The indictment also charges that on or about March 11, 2013, Schmidt knowingly distributed five computer image files, which files each contained a visual depiction of a real minor engaged in sexually explicit conduct.
The indictment also charges that on or about June 4, 2013, Schmidt knowingly possessed a computer disk, which contained visual depictions of real minors engaged in sexually explicit conduct.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Canton office of the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Key West Man Sentenced to Child Pornography ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Rick Ramsey, Monroe County Sheriff, announce that on July 1, 2013, U.S. District Judge Jose E. Martinez sentenced William J. Britt, 55, of Key West, Florida, to 18 years in prison, to be followed by a lifetime of supervised release and registration as a sex offender.
On November 8, 2012, law enforcement conducted a traffic stop on Britt’s Ford Econoline van and arrested Britt on a state warrant for possession of child pornography. During a consensual search of the van, law enforcement found a Harrington and Richardson 20 gauge shotgun that was sawed off at both the barrel and the stock. In addition, law enforcement seized numerous computers, hard drives and thumb drives during a consensual search of Britt’s recreational vehicle, located at Naval Air Station, Sigsbee Trailer Park, Key West, Florida. A forensic analysis revealed that the computers and computer-related equipment contained thousands of images and movies containing child pornography, which include minor children engaging in sexually explicit conduct.
On February 14, 2013, Britt was charged in a superseding indictment with possessing child pornography, receiving child pornography, and possessing a firearm not registered to him in the National Firearms Registration and Transfer Record. On April 17, 2013, Britt pled guilty to receiving child pornography and possessing the unregistered firearm.
Mr. Ferrer commends the investigative efforts of the Monroe County Sheriff’s Office, the Key West State Attorney’s Office, HSI, ATF, and FBI for their assistance and their work on this case. The case is being prosecuted by Assistant U.S. Attorneys Elina A. Rubin-Smith and Robert T. Watson.
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.
Justice Department Reaches Settlement with Rhode Island Company to Resolve Immigration-related Unfair Employment PracticesRead the Press Release
The Justice Department announced today that it has reached an agreement with Vincent Porcaro Inc. (VPI) resolving allegations that the company violated the anti-discrimination provision of the Immigration and Nationality Act (INA). VPI is a Rhode Island company that provides warehousing, distribution, light assembly and packaging for regional, national and international companies.
The department’s investigation was initiated based on a referral from U.S. Citizenship and Immigration Services (USCIS). The department’s investigation found that VPI, beginning in October 2012, required non-citizens to present specific U.S. Department of Homeland Security-issued documents to establish their identity and work authorization while not making similar requests of U.S. citizens. The INA’s anti-discrimination provision prohibits employers from discriminating against noncitizens in the employment eligibility verification process by demanding more or different documents than U.S. citizens are required to present.
Under the settlement agreement, VPI agreed to provide training to its human resources personnel on the INA’s anti-discrimination provision, pay $43,092 in civil penalties to the United States, create a $30,000 back pay fund to compensate individuals who suffered economic injuries as a result of VPI’s documentary practices, and be subject to monitoring by the department for a period of two years.
“Employers who create or change their employment eligibility verification policies and practices have an obligation to ensure that those changes are consistent with the anti-discrimination provision of the INA,” said Gregory Friel, Deputy Assistant Attorney General for the Civil Rights Division. “The division is committed to identifying and addressing employer policies and practices that do not satisfy that obligation.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. The case was handled by Trial Attorney Liza Zamd. For more information about protections against employment discrimination under the immigration laws, call the OSC’s worker hotline at 1-800-255-7688 (1-800-237-2525, TTY for hearing impaired), call the OSC’s employer hotline at 1-800-255-8155 (1-800-362-2735, TTY for hearing impaired), sign up for a no-cost webinar at www.justice.gov/about/osc/webinars.php , email [email protected] or visit the website at www.justice.gov/crt/about/osc .
Justice Department Reaches Settlement with Rhode Island Company to Resolve Immigration-Related Unfair Employment PracticesRead the Press Release
WASHINGTON – The Justice Department announced today that it has reached an agreement with Vincent Porcaro Inc. (VPI) resolving allegations that the company violated the anti-discrimination provision of the Immigration and Nationality Act (INA). VPI is a Rhode Island company that provides warehousing, distribution, light assembly and packaging for regional, national and international companies.
The department’s investigation was initiated based on a referral from U.S. Citizenship and Immigration Services (USCIS). The department’s investigation found that VPI, beginning in October 2012, required non-citizens to present specific U.S. Department of Homeland Security-issued documents to establish their identity and work authorization while not making similar requests of U.S. citizens. The INA’s anti-discrimination provision prohibits employers from discriminating against noncitizens in the employment eligibility verification process by demanding more or different documents than U.S. citizens are required to present.
Under the settlement agreement, VPI agreed to provide training to its human resources personnel on the INA’s anti-discrimination provision, pay $43,092 in civil penalties to the United States, create a $30,000 back pay fund to compensate individuals who suffered economic injuries as a result of VPI’s documentary practices, and be subject to monitoring by the department for a period of two years.
“Employers who create or change their employment eligibility verification policies and practices have an obligation to ensure that those changes are consistent with the anti-discrimination provision of the INA,” said Gregory Friel, Deputy Assistant Attorney General for the Civil Rights Division. “The division is committed to identifying and addressing employer policies and practices that do not satisfy that obligation.”The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. The case was handled by Trial Attorney Liza Zamd. For more information about protections against employment discrimination under the immigration laws, call the OSC’s worker hotline at 1-800-255-7688 (1-800-237-2525, TTY for hearing impaired), call the OSC’s employer hotline at 1-800-255-8155 (1-800-362-2735, TTY for hearing impaired), sign up for a no-cost webinar at http://www.justice.gov/crt/about/osc/webinars.php, email [email protected] or visit the website at www.justice.gov/crt/about/osc.
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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]Jury Finds Mexican Woman Guilty in Meth ConspiracyRead the Press Release
LAREDO, Texas – Rosalva Reyna-Llamas, 30, of Monterrey, Mexico, has been found guilty on all counts as charged - conspiracy to possess with intent to distribute, possession with intent to distribute and importation of methamphetamine, United States Attorney Kenneth Magidson announced today.
Reyna-Llamas was arrested on Feb. 2, 2013, at the Gateway to the Americas Bridge International Port of Entry Bridge I in Laredo. She was driving a blue Mazda CX-7 SUV with State of Nuevo Leon, Mexico, registration. During a Customs and Border Protection (CBP) inspection, an officer discovered nine bundles of methamphetamine weighing 18.24 kilograms hidden in after-market compartments in the side rocker panels of the vehicle.
The jury heard that following her arrest, Reyna-Llamas denied knowledge of the presence of the methamphetamine. According to trial testimony of the officers and agents, she claimed the car was hers and that she wanted to stay in Laredo. However, when questioned by agents with Homeland Security Investigations (HSI), she then claimed the car was purchased for her and that she intended to go to Dallas to pick up luggage for the person who bought her the vehicle. Agents testified that she had plane tickets and a crossing history in her possession demonstrating she had made a flight from Houston to Monterrey the previous day.
U.S. District Judge Diana Saldana, who presided over the two-day trial, will set sentencing at a later date. At that time, Reyna-Llamas faces a minimum of 10 years and up to life in federal prison as well as a possible $10 million fine. Reyna-Llamas has been detained since her arrest on Feb. 2, 2013, where she will remain pending that hearing.
The case was investigated by HSI and CBP. Assistant United States Attorneys Roberto F. Ramirez and Sanjeev Bhasker prosecuted the case.
Jury Finds Mexican Woman Guilty in Meth ConspiracyRead the Press Release
LAREDO, Texas – Rosalva Reyna-Llamas, 30, of Monterrey, Mexico, has been found guilty on all counts as charged - conspiracy to possess with intent to distribute, possession with intent to distribute and importation of methamphetamine, United States Attorney Kenneth Magidson announced today.
Reyna-Llamas was arrested on Feb. 2, 2013, at the Gateway to the Americas Bridge International Port of Entry Bridge I in Laredo. She was driving a blue Mazda CX-7 SUV with State of Nuevo Leon, Mexico, registration. During a Customs and Border Protection (CBP) inspection, an officer discovered nine bundles of methamphetamine weighing 18.24 kilograms hidden in after-market compartments in the side rocker panels of the vehicle.
The jury heard that following her arrest, Reyna-Llamas denied knowledge of the presence of the methamphetamine. According to trial testimony of the officers and agents, she claimed the car was hers and that she wanted to stay in Laredo. However, when questioned by agents with Homeland Security Investigations (HSI), she then claimed the car was purchased for her and that she intended to go to Dallas to pick up luggage for the person who bought her the vehicle. Agents testified that she had plane tickets and a crossing history in her possession demonstrating she had made a flight from Houston to Monterrey the previous day.
U.S. District Judge Diana Saldana, who presided over the two-day trial, will set sentencing at a later date. At that time, Reyna-Llamas faces a minimum of 10 years and up to life in federal prison as well as a possible $10 million fine. Reyna-Llamas has been detained since her arrest on Feb. 2, 2013, where she will remain pending that hearing.
The case was investigated by HSI and CBP. Assistant United States Attorneys Roberto F. Ramirez and Sanjeev Bhasker prosecuted the case.
Johnson City Physicians to Pay $4.25 Million to Resolve Civil False Claims Allegations Re Unapproved Foreign DrugsRead the Press Release
GREENEVILLE, Tenn.– William R. Kincaid, M.D., Millard R. Lamb, M.D., and Charles O. Famoyin, M.D., former partners in East Tennessee Hematology-Oncology Associates, P.C., d/b/a McLeod Cancer and Blood Center (McLeod Cancer) in Johnson City, Tenn., have agreed to pay via separate settlement agreements $4.25 million, plus interest, to resolve allegations that they violated the False Claims Act by knowingly submitting or causing the submission to the Medicare and TennCare/Medicaid programs of false claims for misbranded, unapproved chemotherapy drugs that were administered through the McLeod Cancer clinic.
Dr. Kincaid, the managing partner of McLeod Cancer, pleaded guilty in December 2012 to receiving misbranded drugs with intent to defraud or mislead in violation of the Food, Drug and Cosmetics Act and was sentenced on June 10, 2013, to serve 24 months in federal prison. Dr. Kincaid will also be excluded from federal health care programs for a period of 10 years. Drs. Lamb and Famoyin were minority owners and were not criminally charged. Dr. Kincaid’s portion of the civil settlement is $2.55 million; Drs. Lamb and Famoyin are each responsible for payments of $850,000.
During 2007 to early 2008 and from August 2009 to February 2012, McLeod Cancer purchased a substantial amount of chemotherapy and other drugs, specifically versions of Abraxane®, Alimta®, Avastin®, Eloxatin®, Gemzar®, Herceptin®, Rituxan®, Taxotere®, and Zometa®, from a foreign drug distributor in Canada that obtained these drugs from foreign sources. The drugs, sometimes with labeling in foreign languages or without dosage information, were not manufactured in establishments that were registered with the U.S. Food and Drug Administration (FDA). The FDA, which has responsibility for enforcing the Food, Drug and Cosmetics Act to ensure the health and safety of the American public, requires that any manufacturer or distributor of drugs in the United States be registered with and approved by the FDA. Drugs with labeling in a language other than English or from foreign sources not registered with the FDA are considered “misbranded.”
McLeod Cancer purchased the foreign drugs for amounts substantially below what drugs from legitimate U.S. drug manufacturers and distributors would have cost. Drs. Kincaid, Lamb and Famoyin administered these drugs to their patients and submitted claims for the drugs to the Medicare, TennCare, and other government health benefit programs. Since these programs do not cover such drugs, the government has alleged all of these claims violated the Federal and State False Claims Acts.
“Medical practices that administer prescription drugs from non-FDA approved foreign sources are putting patients at risk of exposure to counterfeit, contaminated, ineffective and potentially dangerous medications. This case is an example of the efforts the government will continue to make to minimize the chance of patients receiving such unsafe medication as well as to ensure that Medicare and other health benefit programs do not pay for unapproved drugs,” said U.S. Attorney Bill Killian. Attorney General Robert Cooper added: “These settlements are a product of cooperation by state and federal agencies working together to ensure that Tennesseans are protected from possibly unsafe or ineffective misbranded drugs.”
Mr. Killian noted that these settlements, as well as the earlier conviction of Dr. Kincaid, resulted from a comprehensive parallel civil and criminal investigation conducted by the FDA Office of Criminal Investigation (FDA-OCI), the Federal Bureau of Investigation (FBI), the Tennessee Bureau of Investigation (TBI), the U.S. Attorney’s Office and the Tennessee Attorney General’s Office. He commended the efforts of all who played a role in the complex investigation, including FDA-OCI Special Agent Bob West, FBI Special Agent Letitia Jones, TBI Special Agent Denise Morrissey Woodby, FBI Forensic Accountant LeAnn Lanz, Assistant U.S. Attorneys Neil Smith and Betsy Tonkin, Special Assistant U.S. Attorney Ben Cunningham, and Assistant Tennessee Attorney General Eli Swiney.
Jerome Bruce Seaman Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Helena, on July 1, 2013, before Chief U.S. District Judge Dana L. Christensen, JEROME BRUCE SEAMAN, a 61-year-old resident of Poplar, appeared for sentencing. SEAMAN was sentenced to a term of:
Prison: 6 months
Special Assessment: $300
Supervised Release: 1 year
SEAMAN was sentenced in connection with his guilty plea to theft from an Indian tribal organization receiving federal grants.
In an Offer of Proof filed by Assistant U.S. Attorney Carl E. Rostad, the government stated it would have proved at trial the following:
In Fiscal Year 2010 (October 1, 2009 - September 30, 2010), the Fort Peck Community College (FPCC) received $7,357,080 in federal funding and in Fiscal Year 2011 (October 1, 2010 - September 30, 2011), the College received $8,988,437 in federal funding. These amounts included math and science grants from the National Science Foundation (NSF), and the U.S. Departments of Education and Energy.
SEAMAN was a mathematics instructor and grant administrator at the Fort Peck Community College. SEAMAN's position at the FPCC as an instructor and grant administrator provided training and meeting opportunities designed to benefit the FPCC and enhance the benefits of the grants which SEAMAN administered. These opportunities required travel, which, since it was job related, was reimbursable from federal grants. SEAMAN submitted false records related to 12 trips he completed between December 2009 and March 2011. The investigation revealed that SEAMAN routinely made alternate travel plans, failed to attend any training or conferences for which the travel funding was provided, and made claims against federal and college finances as if he had not engaged in activities which were entirely for his own personal benefit and enrichment. SEAMAN used fabricated and falsified hotel receipts to support his claims for reimbursement. The total amount of travel funds he received, or otherwise benefitted from, related to those trips was approximately $19,359.23.
In addition to the travel advances and reimbursements paid to SEAMAN while he was on personal adventure, SEAMAN also received approximately $9,668.88 in wages from FPCC for the time periods covered by the 12 trips to which he would not have been entitled if the college was aware that he was on what amounted to unauthorized personal leave.
FPCC's former president advised that SEAMAN had admitted in meetings - when challenged about the fraudulent travel claims - that he knew the claims were false.
A former teacher for the Frazer School on the Fort Peck Indian Reservation became acquainted with SEAMAN when she and her school were involved in a supplemental math program named ALEKS (Assessment and LEarning in Knowledge Spaces), funded through a grant obtained by FPCC. SEAMAN was the grant administrator.
In February 2011, the Frazer teacher traveled to Anchorage, AK, at the same time SEAMAN traveled to Juneau, AK. They met on the way home at the Seattle airport and traveled together from there back to Montana. SEAMAN confided that he had a female friend who resided in Juneau and worked as an elementary or middle school teacher. When SEAMAN became aware that his travel claims were under investigation by the Office for Inspector General for the Department of Interior, and the FBI, he contacted the former teacher from Frazer. SEAMAN sent her an e-mail on March 15, 2012, at 1:26 p.m. in which SEAMAN stated only "Don't say anything, don't know anything : )."
The investigation was conducted by a team of agents and auditors working with the U.S. Attorney's Guardians Project, including the Office of Inspector General for the Department of Interior, and the Federal Bureau of Investigation.
Jail Escapee's Brothers Sentenced on Drug Conspiracy ChargesRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Jamar Mitchell, 27 and Jerrod Mitchell, 24, both of Rochester, N.Y., who were convicted of conspiracy to possess with intent to distribute and to distribute cocaine and cocaine base, were sentenced to 125 months and 70 months respectively by U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Jennifer Noto, who handled the case, stated that the defendants participated in a drug trafficking conspiracy along with their older brother Joseph Mitchell, who escaped from the Monroe County Jail after his arrest on drug trafficking charges. Joseph Mitchell was convicted of drug conspiracy, possession of a firearm in furtherance of drug trafficking, money laundering conspiracy and escape and was sentenced to 25 years in prison by Judge Geraci on June 26, 2013.
From 2008 until March 2011, Joseph, Jemar and Jerrod Mitchell were responsible for the large scale distribution of significant quantities of cocaine and cocaine base in the Rochester and Elmira, N.Y. During the execution of search warrants in connection with the arrest of Joseph and Jamar Mitchell, law enforcement seized large amounts of cash, jewelry, and two firearms. One of the handguns and over $500,000 in cash was secreted in a hidden trap in the base of a fish tank located at the Mitchell family residence.
After Joseph Mitchell's arrest on the drug and gun charges, he orchestrated an elaborate jail escape, which involved multiple individuals, and the smuggling of contraband into the Monroe County Jail. Specifically, Mitchell arranged for a cellular telephone and saw blades, which were secreted inside the binding of a bible, to be smuggled into the jail. Mitchell utilized the saw blades to cut the jail bars on the window of his cell and ultimately escaped with another inmate, Eddie Palmer, by breaking the exterior window and jumping to the ground. Several individuals who assisted Mitchell in his escape were also convicted including Eddie Palmer, Lakesia Binion, and Mathias Smith.
In sentencing Jerrod and Jamar Mitchell Judge Geraci acknowledged Joseph Mitchell's larger role in the drug conspiracy, but noted Jerrod and Jamar Mitchell's participation in the narcotics conspiracy and stated that their cocaine distribution was "like distributing poison into the community."
"This case is another example which shows the success that is made possible by law enforcement at all levels, including federal, state and local, working together to rid the community of dangerous felons," said U.S. Attorney Hochul.
The sentencings are the culmination of an investigation on the part of Special Agents of the Drug Enforcement Agency, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, officers of the Rochester Police Department, under the direction of Chief James Sheppard, The United States Marshals Service, under the direction of US Marshal Charles Salina and investigators of the Monroe County Sheriff's Office, under the direction of Sheriff Patrick O'Flynn.
Illegal Alien Sentenced for Possession and Use of False Identity Documents and False Claim of United States CitizenshipRead the Press Release
An illegal alien from El Salvador who used false identity documents to gain employment and falsely claimed to be an United States citizen was sentenced today to more than thirteen months in federal prison.
Julian Reyes Ferrer-Hernandez, age 27, from Waterloo, Iowa, received the prison term after an April 2, 2013 jury verdict finding him guilty of one count of unauthorized use of a Social Security number not assigned to him, one count of unlawful use and possession of a fake social security card and fake permanent resident card to gain employment in the United States, one count of making a false claim of being a lawful permanent resident alien on an Immigration I-9 form, one count of falsely claiming to be an United States citizen, and one count of making a false statement regarding his employment during an interview with immigration officers.
Evidence at trial showed that on March 14, 2012, Ferrer-Hernandez was arrested in Waterloo, Iowa, for public intoxication. At the time of his arrest, Ferrer-Hernandez provided a Waterloo police officer with six different identity cards, including a fake social security card and a fake lawful permanent resident alien card. The permanent resident number was assigned to a Nigerian. Officers also seized two El Salvadoran identity cards and two fake California ID cards. Ferrer-Hernandez was born in, and is a citizen of, El Salvador.
Testimony showed that Ferrer-Hernandez used the fake social security card and the fake lawful permanent resident alien card to obtain employment in Waterloo, Iowa, where he filled out an Immigration I-9 Form on May 19, 2008, falsely claiming to be a lawful permanent resident alien. Immigration I-9 forms are required to be completed by all employees working within the United States. Ferrer-Hernandez worked in Waterloo, Iowa, continuously from May 2008 through February 2012.
On April 16, 2012, Ferrer-Hernandez was questioned by an officer with Homeland Security. During that interview Ferrer-Hernandez first claimed he was born in El Salvador, then falsely claimed he was a United States citizen born in an unknown city in Texas. Ferrer-Hernandez also falsely stated that he had not been employed in the United States since 2005.
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Ferrer-Hernandez was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Ferrer-Hernandez was sentenced to 407 days imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.Ferrer-Hernandez is being held in the United States Marshal’s custody until he can be turned over to the Department of Homeland Security, Immigration and Customs Enforcement for deportation proceedings.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and was investigated by officers from the Waterloo Police Department, the Black Hawk County Sheriff’s Office, and the Department of Homeland Security, Immigration and Customs Enforcement.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 12-2012.
Four Patagonia Drug Traffickers Sentenced to Serve A Combined Term of 32 Years in PrisonRead the Press Release
TUCSON, Ariz. – On July 1, 2013, Patagonia, Arizona residents Fabian Monge, 34, Isabel Monge-Sierras, 43, Mary Francis (Monge) Carlson, 32, and Frank Lopez, 49 were sentenced by U.S. District Judge Raner C. Collinsto serve terms of imprisonment of 12.5 years, 7 years, 5 years, and 7.5 years, respectively. After the conclusion of a three-week trial, on September 27, 2012, a federal jury found the defendants guilty of conspiring to possess with the intent to distribute over 1,000 kilograms of marijuana. Fabian Monge was additionally found guilty of two separate counts of aiding and abetting the possession with intent to distribute over 100 kilograms of marijuana. Frances Monge was acquitted at trial.
“This successful prosecution reflects our cooperation with our law enforcement partners in combating drug trafficking organizations that choose to operate in our smaller Arizona communities. These prison terms represent a significant blow to this organization and sends a message to those who work at all levels of such drug trafficking organizations that they will be held accountable,” said U.S. Attorney John S. Leonardo, “I want to thank the federal, state, and local law enforcement agencies for their team effort in this investigation.”
"For years, Fabian Monge operated a family run drug trafficking organization with impunity," said DEA Special Agent in Charge Doug Coleman. “Their sentencing is another example that DEA and its law enforcement partners will use every tool at our disposal to identify and bring to justice those individuals who think they will never have to pay the price for their illegal activity". From the kingpins to the street dealers our combined goal is to disrupt and dismantle drug trafficking organizations and put them out of service."
The trial testimony showed that the Monge family, from Patagonia, belonged to a family-run Drug Trafficking Organization (DTO) which was led by Fabian Monge and closely followed by his older sister Isabel Santos-Sierra (Monge). Their younger sister Mary Francis Carlson (Monge) also played a role in the DTO and Frank Lopez was one of the stash house operators for the organization. Witnesses testified that the Monge DTO have been smuggling marijuana from Mexico into the United States and transporting the bulk marijuana to Tucson and Phoenix since at least 2006. The Monge DTO was responsible for trafficking multi-ton quantities of marijuana from Patagonia until their arrests in 2010.
Collectively, this conspiracy investigation resulted in over 40 defendants charged in federal court in separate indictments comprising of coordinators, stash house operators, marijuana load drivers, and individuals who registered vehicles for the DTO. This investigation was a collaborative effort initiated by DEA-Nogales, U.S. Border Patrol-Sonoita, Cochise County Sheriff’s Office, the Sierra Vista Police Department, and the Patagonia Police Department. The prosecution was handled by Liza M. Granoff and Jeffrey D. Martino, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-10-863-TUC-RCC
RELEASE NUMBER: 2013-052_MongeFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Four Floridians in Fraudulent Prisoner Income Tax Refund Scheme Sentenced to PrisonRead the Press Release
PENSACOLA, FLORIDA – United States Attorney Pamela C. Marsh announced that the sentencing of four Floridians by Chief U. S. District Judge M. Casey Rodgers concluded today with the last defendant. William Scott Folk (36) and Christopher Jesse Lee (35) both currently incarcerated with the Florida Department of Corrections, Cora Beard (68) of Morriston, and Gail Anita Moss (60) of Miami Gardens were all sentenced to prison time following their previously entered guilty pleas to charges of conspiracy to defraud the government with respect to claims and conspiracy to commit mail fraud. Beard and Moss were also sentenced as a result of additional counts of filing false claims against the government, theft from the government, and aggravated identity theft
The sentences for each defendant are as follows:
- Christopher Jesse Lee was sentenced to 120 months in prison which is to run consecutively to the state of Florida sentence he is now serving and was ordered to pay restitution to the Internal Revenue Service in the amount of $435,130;
- Cora Beard was sentenced to 33 months in prison and was ordered to pay restitution to the Internal Revenue Service in the amount of $580,884;
- Gail Anita Moss was sentenced to 25 months in prison and was ordered to pay restitution to the Internal Revenue Service in the amount of $156,410; and
- William Scott Folk was sentenced to 120 months in prison and was ordered to pay restitution to the Internal Revenue Service in the amount of $580,884.
United States Attorney Pamela Marsh said, “Defrauding the government, abusing the identity of American citizens and undermining the public’s trust in the system will not be taken lightly by this office. We will prosecute these types of criminals with extreme prejudice and the penalties for those convicted will be severe.”
All four defendants were sentenced after pleading guilty in March of this year that beginning around January 2006, the four individuals and others filed fraudulent tax returns using the names and social security numbers of inmates housed in the Florida Department of Corrections, and on occasion using the identities of other individuals who were not incarcerated. As part of this scheme, Beard and Moss used their home addresses as well as the home addresses of previously indicted co-conspirators Mary Blair, Thomas Rabeau, Nikki Kight, Elton Blair, and others, so fraudulent IRS refund checks would be mailed to them. The co-conspirators were indicted January 2012, and all pled guilty to their involvement in the fraudulent income tax scheme, and are serving sentences of between 5 and 10 years. During the course of the scheme, the defendants and others filed and caused to be filed approximately three hundred and forty-four false and fraudulent federal income tax returns, which falsely claimed approximately $1,656,721 in false, fictitious, and fraudulent refunds from the United States.
"IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority” stated James D. Robnett, Special Agent in Charge of the Tampa Field Office. “Filing fraudulent tax returns in the names of other individuals is a significant harm to those individuals whose identities were stolen, as well as a monetary loss against the U.S. Treasury, and abuses the system in which the taxpaying public places its trust. IRS will continue to bring these violators to justice to strengthen the public’s trust and confidence in the integrity of the tax system."
The case was prosecuted by Assistant U.S. Attorneys Tiffany H. Eggers and Randall J. Hensel as part of a Department of Justice initiative to fight stolen identity refund fraud (SIRF). In September 2012, the Department issued Tax Division Directive 144, which sets forth expedited Department review procedures for SIRF cases, enabling law enforcement to respond quickly and effectively to the grave challenges presented in SIRF cases and to prevent the victimization of innocent taxpayers whose identities are stolen by fraudsters. The investigation is the result of an investigation by the Internal Revenue Service – Criminal Investigations with the support of the Florida Department of Corrections.
Former Sutherland Global Services Employees Plead Guilty to Mail FraudRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Brian Wergin, 31, and Bohdan “Don” Luzecky, 45, both of Rochester, N.Y., pleaded guilty before U.S. District Judge Frank P. Geraci, to mail fraud. The charge carries a maximum penalty of 20 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Marisa J. Miller, who is handling the case, stated that the defendants placed false orders for free copies of replacement Intuit software, including TurboTax and Quicken, while employed by Sutherland Global Services. After receiving the software at addresses in Rochester, Atlanta, GA, the defendants sold the software online, including through eBay.com, to customers throughout the United States. Wergin and Luzecky then kept the proceeds for themselves, knowing that they were not authorized to obtain or sell the software.
Sentencing is scheduled for October 2, 2013, 3:00 p.m. before Judge Geraci.
The pleas are the culmination of an investigation on the part of Inspectors of the United States Postal Inspection Service, Boston Division, under the direction of Inspector Kevin Niland and Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel.Former Shreveport Cardiology Center Office Manager Sentenced for Bank FraudRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced today that Vongphanet J. “Joe” Siharath, 40, of Bossier City, La., was sentenced by U.S. District Judge Elizabeth E. Foote to 41 months in prison with five years of supervised release for bank fraud. He was also ordered to pay $1,057,949 in restitution.
According to evidence presented at the guilty plea, Siharath admitted to forging signatures of doctors associated with the medical practice of Cardiology Associates in Shreveport where he was office manager from Jan. 22, 2008 to July 25, 2012. He forged approximately 48 checks and purchased one cashier’s check, with a total loss of $1,057,949 to Cardiology and Associates. The forged checks were made payable to various payees. Siharath controlled each account the money was deposited into.Beginning on Jan. 30, 2009 until July 25, 2012, the defendant also obtained loans to cover the money taken because of the forged checks. The loan officer at the bank allowed the defendant to leave with the bank paperwork to have it signed by various doctors. Instead, the defendant forged the doctors’ names.
The U.S. Secret Service and the Caddo Parish White Collar Crime Task Force conducted the investigation. Assistant U.S. Attorney Mignonne Griffing prosecuted the case.
Former Fugitive Sentenced on Fraud ChargesRead the Press Release
LYNCHBURG, VIRGINIA -- A man who was a fugitive from justice for more than a year was sentenced this morning in the United States District Court for the Western District of Virginia in Lynchburg on a variety of fraud charges.
James Gordon Fields, 47, whose last known address is unknown, pled guilty earlier this year to two counts of bank fraud, one count of making a false statement in relation to a loan, one count of aggravated identity theft, one count of making a false statement under oath in relation to a bankruptcy case and one count of engaging in a monetary transaction in criminally derived property of a value greater than $10,000.
This morning, Fields was sentenced to 10 years in federal prison.
“Mr. Fields repeatedly committed brazen acts of fraud, then tried to flee when apprehended,” United States Attorney Timothy J. Heaphy said today. “He was ultimately brought to justice and held accountable for the tremendous financial loss he caused during his criminal scheme. This office will remain vigilant in our investigation and prosecution of those who commit financial fraud.”
Fields previously admitted to submitting forged signatures on guarantees for loans, submitting fraudulent documentation showing he was the beneficiary of a $77 million trust, which in fact did not exist, and lying about all of the above during his bankruptcy proceedings.
The defendant also forged documents in September 2007 and March 2008 that caused Wachovia bank to issue more than $14 million in fraudulent loans. In addition, he admitted that at the time of his arrest, he removed a screen from a second story window and attempted to escape capture by United States Marshals. He was eventually apprehended two houses away.
The investigation of the case was conducted by the United States Postal Inspection Service, the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation and the United States Marshal’s Service. Assistant United States Attorney Randy Ramseyer is prosecuting the case for the United States.
Former Employee Sentenced to over Three Years in Prison for Embezzling Funds from Labor UnionRead the Press Release
Cashed Over 300 Checks Totaling $502,586 for Her Personal Benefit
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Cora Carper, age 32, of Churchton, Maryland, today to 37 months in prison followed by three years of supervised release for embezzling from a labor union’s political action committee. Judge Russell also entered an order that Carper pay $495,286 in restitution, the amount remaining from what she embezzled. Carper’s family previously paid $7,300.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and District Director Mark Wheeler of the U.S. Department of Labor, Office of Labor – Management Standards (DOL).
According to her plea, Carper was a secretary with the International Association of Heat and Frost Insulators and Allied Workers, and processed disbursement requests for the Insulators Political Action Committee (PAC) fund. Disbursement requests from the PAC fund had to be made in writing and only by certain officers of the Insulators local. For each requested disbursement, Carper was supposed to print a check from the PAC fund account that contained the electronic signatures of the Insulators general president and secretary-treasurer, and forward that check to the recipient. Carper also entered PAC fund receipts and deposits into a computerized ledger, made deposits in the PAC fund, and reconciled monthly PAC fund bank statements against the electronic ledger.
Carper admits that between June 2009 and February 2011, she printed more than 300 checks totaling approximately $502,586, from the PAC fund account made payable to “cash,” “cash reimbursement,” or “petty cash.” Union officials stated that Carper printed and cashed the checks without authorization, often cashing multiple PAC fund checks the same day. Carper endorsed the back of all but 13 of the more than 300 checks she cashed, and deposited at least $180,000 into her personal bank accounts. To cover up her embezzlement, Carper falsely indicated in the computerized ledger that the checks were written for donations to political candidates or to reimburse work expenses.
In early 2011, the Insulators general president confronted Carper about her embezzlement. Carper admitted that she had taken $7,300, but denied further embezzlement. Her family paid the Insulators $7,300. A subsequent internal investigation by the Insulators and DOL revealed that Carper’s embezzlement far exceeded her limited admission, with $502,586 in checks attributed to Carper’s embezzlement.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised DOL, Office of Labor - Management Standards for its work in the investigation and thanked Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.
Former Employee Sentenced to over Three Years in Prison for Embezzling Funds from Labor UnionRead the Press Release
Cashed Over 300 Checks Totaling $502,586 for Her Personal Benefit
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Cora Carper, age 32, of Churchton, Maryland, today to 37 months in prison followed by three years of supervised release for embezzling from a labor union’s political action committee. Judge Russell also entered an order that Carper pay $495,286 in restitution, the amount remaining from what she embezzled. Carper’s family previously paid $7,300.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and District Director Mark Wheeler of the U.S. Department of Labor, Office of Labor – Management Standards (DOL).
According to her plea, Carper was a secretary with the International Association of Heat and Frost Insulators and Allied Workers, and processed disbursement requests for the Insulators Political Action Committee (PAC) fund. Disbursement requests from the PAC fund had to be made in writing and only by certain officers of the Insulators local. For each requested disbursement, Carper was supposed to print a check from the PAC fund account that contained the electronic signatures of the Insulators general president and secretary-treasurer, and forward that check to the recipient. Carper also entered PAC fund receipts and deposits into a computerized ledger, made deposits in the PAC fund, and reconciled monthly PAC fund bank statements against the electronic ledger.
Carper admits that between June 2009 and February 2011, she printed more than 300 checks totaling approximately $502,586, from the PAC fund account made payable to “cash,” “cash reimbursement,” or “petty cash.” Union officials stated that Carper printed and cashed the checks without authorization, often cashing multiple PAC fund checks the same day. Carper endorsed the back of all but 13 of the more than 300 checks she cashed, and deposited at least $180,000 into her personal bank accounts. To cover up her embezzlement, Carper falsely indicated in the computerized ledger that the checks were written for donations to political candidates or to reimburse work expenses.
In early 2011, the Insulators general president confronted Carper about her embezzlement. Carper admitted that she had taken $7,300, but denied further embezzlement. Her family paid the Insulators $7,300. A subsequent internal investigation by the Insulators and DOL revealed that Carper’s embezzlement far exceeded her limited admission, with $502,586 in checks attributed to Carper’s embezzlement.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised DOL, Office of Labor - Management Standards for its work in the investigation and thanked Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.
Former Bank President Stephen Henry Sentenced to Two Years, Ordered to Pay $2.4 Million in RestitutionRead the Press Release
Memphis, TN – Stephen Henry, 46, of Memphis, was sentenced Friday to 24 months in prison and ordered to pay $2,424,000 in restitution as a result of his guilty plea to one count of misapplication of bank funds, announced U.S. Attorney Edward L. Stanton III.
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Henry was serving as president and CEO of Oakland Deposit Bank, which was owned by his family. According to information revealed during his plea hearing, Oakland Bank had made numerous loans to Stephen Sims, a local real estate investor. In late 2007, many of these loans were delinquent. In an effort to keep the loans from going into default, Stephen Henry assisted Stephen Sims in using monies from construction loans to pay on unrelated unsecured loans that had become delinquent. In addition, Stephen Henry manipulated the bank’s books and records to allow bank monies to be used to pay on delinquent loans without being credited to a customer’s account.
The scheme eventually led to Sims defaulting on more than $2.4 million dollars in loans from the bank. Oakland Deposit Bank was forced to go into receivership and was taken over by officials with the Federal Deposit Insurance Corporation (FDIC). The bank was later sold.
For his role in the scheme, Sims pleaded guilty to three counts of bank fraud and was sentenced to 87 months in federal prison in July 2012. He was also ordered to pay more than $2.4 million in restitution.
“The court found that while he did not personally benefit from the fraud perpetrated against the bank, Mr. Henry’s failure to follow proper banking procedure enabled the scheme to defraud the bank,” said U.S. Attorney Stanton. “Today’s sentence serves as a warning to those in positions of authority that the failure to exercise due diligence can leave you exposed to serious criminal consequences.”
In addition to the prison sentence and restitution, U.S. District Judge Samuel H. Mays, Jr., ordered Henry to serve five years of supervised release. There is no parole in the federal prison system.
This case was investigated by the Federal Bureau of Investigation and the FDIC. Executive Assistant U.S. Attorney Larry Laurenzi represented the government.Florida Man Indicted for $4 Million Bank Fraud Related to Massillon Construction ProjectRead the Press Release
A Florida man was indicted on four counts for a scheme in which he defrauded Fifth Third Bank out of approximately $4 million, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Russell W. Spitz, age 75, owned and operated his company, Vision Power Systems, out of the Jacksonville, Florida area, where is currently residing. He was indicted on one count of bank fraud and three counts of wire fraud.
The indictment charges that between in or around December 2006, and in or around August 2008, Spitz knowingly executed a scheme to defraud Fifth Third Bank of approximately $4 million.
The indictment alleges that this scheme began when Spitz’s company, Vision Power Systems, agreed to construct and operate a biomass boiler for FiberCorr, a corrugated paper company based in Massillon, Ohio. The biomass boiler was intended to reduce energy expenses by providing heat and steam power to FiberCorr’s paper mills. The project was financed by the Stark County Port Authority, but Fifth Third Bank issued a letter of credit to guarantee the bonds.
The indictment alleges that Spitz submitted a number of fraudulent documents to Fifth Third Bank during the loan negotiation process, which Fifth Third Bank relied up on when it decided to enter into the loan agreement with Spitz. Fifth Third Bank disbursed approximately $4.1 million for the project.
The indictment alleges that Spitz did not use the funds for construction of the boiler, and, as a result, construction on the boiler stopped in 2008. The project was never completed.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation.
This case is being prosecuted by Assistant U.S. Attorney Chelsea S. Rice of the Cleveland U.S. Attorney’s Office, following an investigation by the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Financial Planner Sentenced to Prison for Investment Scheme That Targeted Elderly ClientsRead the Press Release
PHOENIX, Ariz. - Jay Kevin Perry, 38, of Phoenix, Ariz., was sentenced today by U.S. District Court Judge Paul G. Rosenblatt to 44 months in prison for engaging in a bankruptcy fraud scheme that targeted elderly investors. Another hearing before Judge Rosenblatt, to resolve the nearly $1 million in restitution claims filed against Perry, is currently scheduled for August 6, 2013.
"Unfortunately, the problem of investment scams targeting the elderly has become rampant,” said John S. Leonardo, United States Attorney. “This case sends a strong message that the United States Attorney’s Office, the United States Secret Service, and the FBI are committed to the investigation and prosecution of investment managers who defraud the most vulnerable members of our community. The fact that some of the victims of this scheme were infirm, in their 90s, and lost their life savings makes this defendant particularly deserving of a prison sentence."
Perry defrauded elderly estate-planning clients, many of whom lived in Sun City, Ariz., and ranged in age from the 60s to the late 90s, by convincing them to liquidate annuities and loan money to him. Although Perry promised reasonable returns on these “loans,” he made few if any payments to his clients. In some cases, Perry secured his clients’ “loans” with a commercial property on which he had failed to make payments. Unbeknownst to his clients, Perry also filed for bankruptcy, and in his bankruptcy petition he intentionally omitted the addresses of his clients (which had the effect of concealing that he was attempting to discharge the debts he owed them).
The investigation in this case was conducted by the United States Secret Service and the Federal Bureau of Investigation. The prosecution was handled by Assistant U.S. Attorney Kevin M. Rapp.
CASE NUMBER: CR 11-2291-PHX-PGR
RELEASE NUMBER: 2013-051_Perry
# # #For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Fifty-five hospitals to pay u.S. more than $34 million to resolve false claims act allegations related to kyphoplastyRead the Press Release
BUFFALO – U.S. Attorney William J. Hochul, Jr. announced today that 55 hospitals located throughout 21 states have agreed to pay the United States a total of more than $34,000,000 to settle allegations that the health care facilities submitted false claims to Medicare for kyphoplasty procedures. Kyphoplasty is a minimally-invasive procedure used to treat certain spinal fractures that often are due to osteoporosis.
In many cases, kyphoplasty can be performed safely and effectively as an outpatient procedure without any need for a more costly hospital admission. The settlements announced today resolve allegations that the settling hospitals frequently billed Medicare for kyphoplasty procedures on a more costly inpatient basis, rather than an outpatient basis, in order to increase their Medicare billings.
“This office will continue to ensure that sound medical decisions determine the ultimate treatment of a patient, not the financial interests of hospitals,” said U.S. Attorney William J. Hochul, Western District of New York. “We will not stand by and allow hospitals to inflate their profits based on unnecessary hospital admissions at the expense of the Medicare program or any other federal program. The settlements announced today will help maintain the integrity of this important program and all government-funded programs.”
The settling facilities, and the amounts they have agreed to pay, include the following:
Atrium Medical Center, Middletown, OH, has agreed to pay $4,232,992.50.Altru Health System, Grand Forks, ND, has agreed to pay $1,492,690.
Cedars Sinai Medical Center, Los Angeles, CA, has agreed to pay $1,485,846.
Des Peres Hospital, St. Louis, MO, has agreed to pay $900,000.
Mount Sinai Medical Center, Miami, FL, has agreed to pay $1,846,194.00.
New England Baptist Hospital, Boston, MA, has agreed to pay $374,814.48.
St. Anne’s Hospital, Fall River, MA, has agreed to pay $552,745.
The Queen’s Medical Center, Honolulu, HI, has agreed to pay $1,055,249.57.
Trover Health System, Madisonville, KY, has agreed to pay $1,162,837.
Wayne Memorial Hospital, Goldsboro, NC, has agreed to pay $1,250,000.
Twenty-three hospitals affiliated with HCA Inc., Nashville, TN, have agreed to pay a total of $7,145,842.72. These include: Aventura Hospital & Medical Center (Aventura, FL); Capital Regional Medical Center (Tallahassee, FL); Coliseum Medical Center (Macon, GA); Coliseum Northside Hospital (Macon, GA); Conroe Regional Medical Center (Conroe, TX); Denton Regional Medical Center (Denton, TX); Doctors Hospital of Sarasota (Sarasota, FL); Edmond Regional Medical Center (Edmond, OK); Fawcett Memorial Hospital (Port Charlotte, FL); Fort Walton Beach Medical Center (Fort Walton Beach, FL); Garden Park Medical Center (Gulf Port, MS); JFK Medical Center (Atlantis, FL); Los Robles Regional Medical Center (Thousand Oaks, CA); North Florida Regional Medical Center (Gainesville, FL); Northlake Medical Center (Tucker, GA); Oklahoma University Medical Center (Oklahoma City, OK); Palmyra Medical Center (Albany, GA); Redmond Regional Medical Center (Rome, GA); Southwest Florida Regional Medical Center (Fort Myers, FL); St. Lucie Medical Center (Port Saint Lucie, FL); Summit Medical Center (Hermitage, TN); Sunrise Hospital & Medical Center (Las Vegas, NV); and Wesley Medical Center (Wichita, KS).
Six hospitals affiliated with Lifepoint Hospitals, Inc., Brentwood, TN, have agreed to pay a total of $2,522,502.69. These include: Andalusia Regional Hospital (Andalusia, AL); Jackson Purchase Medical Center (Mayfield, KY); Lake Cumberland Regional Hospital (Somerset, KY); Minden Medical Center (Minden, LA); Russellville Hospital (Russellville, AL); and Western Plains Medical Complex (Dodge City, KS).
Five hospitals affiliated with Trinity Health, Livonia, MI, have agreed to pay a total of $3,910,017.53. These include: Mercy Medical Center – Dubuque (Dubuque, IA); Mercy Medical Center - Sioux City (Sioux City, IA); St. Joseph Mercy Hospital (Pontiac, MI); Mercy Health Partners (Muskegon, MI); and Mount Carmel New Albany Surgical Hospital (New Albany, OH).
Four hospitals affiliated with Morton Plant Mease BayCare Health System, Clearwater, FL, have agreed to pay a total of $2,378,325.45. These include: Morton Plant Hospital (Clearwater, FL); Morton Plant North Bay Hospital (New Port Richey, FL); Mease Dunedin Hospital (Dunedin, FL); and Mease Countryside Hospital (Safety Harbor, FL).
Three hospitals affiliated with Baptist Memorial Health Care Corporation, Memphis, TN, have agreed to pay a total of $691,168. These include: Baptist Memorial Hospital-Golden Triangle (North Columbus, MS); Baptist Memorial Hospital-Collierville (Collierville, TN); and Baptist Memorial Hospital-Memphis (Memphis, TN).
Two hospitals affiliated with Covenant Health, Knoxville, TN, have agreed to pay a total of $1,845,641.74. These include Parkwest Medical Center (Knoxville, TN) and Methodist Medical Center of Oak Ridge (Oak Ridge, TN).
Two Hospitals affiliated with Bayhealth Medical Center, Newark, DE, have agreed to pay a total of $1,115,306.37. These include Bayhealth Kent General Hospital (Dover, DE) and Bayhealth Milford Memorial Hospital (Milford, DE).
The Justice Department has now reached settlements with more than 100 hospitals totaling approximately $75 million to resolve allegations that they mischarged Medicare for kyphoplasty procedures. In addition to today’s settlement, the government previously settled with Medtronic Spine LLC, the corporate successor to Kyphon Inc., for $75 million to settle allegations that the company defrauded Medicare by counseling hospital providers to perform kyphoplasty procedures as inpatient rather than outpatient procedures.
All but four of the settling facilities announced today were named as defendants in a qui tam, or whistle blower, lawsuit brought under the False Claims Act, which permits private citizens to bring lawsuits on behalf of the United States and receive a portion of the proceeds of any settlement or judgment awarded against a defendant. The lawsuit was filed in federal district court in Buffalo, N.Y., by Craig Patrick and Charles Bates. Patrick is a former reimbursement manager for Kyphon, and Bates was formerly a regional sales manager for Kyphon in Birmingham, Ala. The whistle blowers will receive a total of approximately $5.5 million from the settlements announced today.
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. 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 that effort is the False Claims Act, which the Justice Department has used to recover more than $10.7 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14.7 billion.
The settlements were the result of a coordinated effort among the U.S. Attorney’s Office for the Western District of New York, the Commercial Litigation Branch of the Justice Department’s Civil Division, and the Department of Health and Human Services’ Office of Inspector General and Office of Counsel to the Inspector General.
The claims resolved by these settlements are allegations only, and there has been no determination of liability.Fifty-Five Hospitals to Pay U.S. More Than $34 Million<br /> to Resolve False Claims Act Allegations Related to KyphoplastyRead the Press Release
Fifty-five hospitals located throughout twenty-one states have agreed to pay the United States a total of more than $34 million to settle allegations that the health care facilities submitted false claims to Medicare for kyphoplasty procedures, the Justice Department announced today. Kyphoplasty is a minimally-invasive procedure used to treat certain spinal fractures that often are due to osteoporosis.
In many cases, kyphoplasty can be performed safely and effectively as an outpatient procedure without any need for a more costly hospital admission. The settlements announced today resolve allegations that the settling hospitals frequently billed Medicare for kyphoplasty procedures on a more costly inpatient basis, rather than an outpatient basis, in order to increase their Medicare billings.
“Hospitals that participate in the Medicare program must bill for their services accurately and honestly,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division of the Department of Justice. “The Department of Justice is committed to ensuring that Medicare funds are expended appropriately, based on the medical needs of patients rather than the desire of medical providers to maximize profits.”
The settling facilities, and the amounts they have agreed to pay, include the following:
• Atrium Medical Center, Middletown, OH, has agreed to pay $4,232,992.50.
• Altru Health System, Grand Forks, ND, has agreed to pay $1,492,690.
• Cedars Sinai Medical Center, Los Angeles, CA, has agreed to pay $1,485,846.
• Des Peres Hospital, St. Louis, MO, has agreed to pay $900,000.
• Mount Sinai Medical Center, Miami, FL, has agreed to pay $1,846,194.00.
• New England Baptist Hospital, Boston, MA, has agreed to pay $374,814.48.
• St. Anne’s Hospital, Fall River, MA, has agreed to pay $552,745.
• The Queen’s Medical Center, Honolulu, HI, has agreed to pay $1,055,249.57.
• Trover Health System, Madisonville, KY, has agreed to pay $1,162,837.
• Wayne Memorial Hospital, Goldsboro, NC, has agreed to pay $1,250,000.
• Twenty-three hospitals affiliated with HCA Inc., Nashville, TN, have agreed to pay a total of $7,145,842.72. These include: Aventura Hospital & Medical Center (Aventura, FL); Capital Regional Medical Center (Tallahassee, FL); Coliseum Medical Center (Macon, GA); Coliseum Northside Hospital (Macon, GA); Conroe Regional Medical Center (Conroe, TX); Denton Regional Medical Center (Denton, TX); Doctors Hospital of Sarasota (Sarasota, FL); Edmond Regional Medical Center (Edmond, OK); Fawcett Memorial Hospital (Port Charlotte, FL); Fort Walton Beach Medical Center (Fort Walton Beach, FL); Garden Park Medical Center (Gulf Port, MS); JFK Medical Center (Atlantis, FL); Los Robles Regional Medical Center (Thousand Oaks, CA); North Florida Regional Medical Center (Gainesville, FL); Northlake Medical Center (Tucker, GA); Oklahoma University Medical Center (Oklahoma City, OK); Palmyra Medical Center (Albany, GA); Redmond Regional Medical Center (Rome, GA); Southwest Florida Regional Medical Center (Fort Myers, FL); St. Lucie Medical Center (Port Saint Lucie, FL); Summit Medical Center (Hermitage, TN); Sunrise Hospital & Medical Center (Las Vegas, NV); and Wesley Medical Center (Wichita, KS).
• Six hospitals affiliated with Lifepoint Hospitals, Inc., Brentwood, TN, have agreed to pay a total of $2,522,502.69. These include: Andalusia Regional Hospital (Andalusia, AL); Jackson Purchase Medical Center (Mayfield, KY); Lake Cumberland Regional Hospital (Somerset, KY); Minden Medical Center (Minden, LA); Russellville Hospital (Russellville, AL); and Western Plains Medical Complex (Dodge City, KS).
• Five hospitals affiliated with Trinity Health, Livonia, MI, have agreed to pay a total of $3,910,017.53. These include: Mercy Medical Center – Dubuque (Dubuque, IA); Mercy Medical Center - Sioux City (Sioux City, IA); St. Joseph Mercy Hospital (Pontiac, MI); Mercy Health Partners (Muskegon, MI); and Mount Carmel New Albany Surgical Hospital (New Albany, OH).
• Four hospitals affiliated with Morton Plant Mease BayCare Health System, Clearwater, FL, have agreed to pay a total of $2,378,325.45. These include: Morton Plant Hospital (Clearwater, FL); Morton Plant North Bay Hospital (New Port Richey, FL); Mease Dunedin Hospital (Dunedin, FL); and Mease Countryside Hospital (Safety Harbor, FL).
• Three hospitals affiliated with Baptist Memorial Health Care Corporation, Memphis, TN, have agreed to pay a total of $691,168. These include: Baptist Memorial Hospital-Golden Triangle (North Columbus, MS); Baptist Memorial Hospital-Collierville (Collierville, TN); and Baptist Memorial Hospital-Memphis (Memphis, TN).
• Two hospitals affiliated with Covenant Health, Knoxville, TN, have agreed to pay a total of $1,845,641.74. These include Parkwest Medical Center (Knoxville, TN) and Methodist Medical Center of Oak Ridge (Oak Ridge, TN).
• Two Hospitals affiliated with Bayhealth Medical Center, Newark, DE, have agreed to pay a total of $1,115,306.37. These include Bayhealth Kent General Hospital (Dover, DE) and Bayhealth Milford Memorial Hospital (Milford, DE).“This office will continue to ensure that sound medical decisions determine the ultimate treatment of a patient, not the financial interests of hospitals,” said U.S. Attorney William J. Hochul, Western District of New York. “We will not stand by and allow hospitals to inflate their profits based on unnecessary hospital admissions at the expense of the Medicare program or any other federal program. The settlements announced today will help maintain the integrity of this important program and all government-funded programs.”
“Whenever hospitals knowingly overcharge Medicare, critically needed resources are wasted and health costs are driven up,” said Daniel R. Levinson, Inspector General for the U.S. Department of Health and Human Services. “When taxpayers’ dollars are threatened, OIG and its federal partners will take action.”
The Justice Department has now reached settlements with more than 100 hospitals totaling approximately $75 million to resolve allegations that they mischarged Medicare for kyphoplasty procedures. In addition to today’s settlement, the government previously settled with Medtronic Spine LLC, the corporate successor to Kyphon Inc., for $75 million to settle allegations that the company defrauded Medicare by counseling hospital providers to perform kyphoplasty procedures as inpatient rather than outpatient procedures.
“It has never been more important to protect the Medicare Trust Fund, and this includes ensuring that Medicare is not burdened with the high costs of medically unnecessary admissions. The Office of Inspector General will continue to ensure that the Medicare Program is protected from fraud, waste, and abuse,” said Tom O'Donnell, Special Agent in Charge of the Office of Investigations of the HHS-OIG New York Regional Office. “The settlements related to kyphoplasty billing that have been reached with over 100 hospitals represent one of the largest and most successful multi-party health care investigations in the nation.”
All but four of the settling facilities announced today were named as defendants in a qui tam, or whistleblower, lawsuit brought under the False Claims Act, which permits private citizens to bring lawsuits on behalf of the United States and receive a portion of the proceeds of any settlement or judgment awarded against a defendant. The lawsuit was filed in federal district court in Buffalo, N.Y., by Craig Patrick and Charles Bates. Mr. Patrick is a former reimbursement manager for Kyphon, and Mr. Bates was formerly a regional sales manager for Kyphon in Birmingham, Ala. The whistleblowers will receive a total of approximately $5.5 million from the settlements announced today.
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. 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 that effort is the False Claims Act, which the Justice Department has used to recover more than $10.7 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14.7 billion.
The settlements were the result of a coordinated effort among the U.S. Attorney’s Office for the Western District of New York, the Commercial Litigation Branch of the Justice Department’s Civil Division, and the Department of Health and Human Services’ Office of Inspector General and Office of Counsel to the Inspector General.
The claims resolved by these settlements are allegations only, and there has been no determination of liability.
Federal Inmates Indicted for Having Marijuana in PrisonRead the Press Release
Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced today that a federal grand jury returned indictments charging two people with possession of contraband in prison.
One indictment charges that on or about August 7, 2012, while an inmate in Federal Correctional Institute Elkton, Jason D. Melton, age 32, possessed marijuana in violation of federal statutes prohibiting the possession of contraband in prison.
Another indictment charges that on or about April 4, 2013, Albert Robinson, age 42, possessed marijuana while an inmate in Federal Correctional Institute Elkton.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This cases are being prosecuted by Assistant United States Attorneys M. Kendra Klump and Margaret Sweeney, following investigations by the Youngstown Resident Agency of the Federal Bureau of Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Federal Grand Jury in Fort Wayne Returns IndictmentRead the Press Release
FortWayne,IN C TheUnited States Attorney's Office announced that a Grand Jury sitting in Fort Wayne, Indiana, returnedthe following Indictment on May 22, 2013:
DavidWilliams,28,ofFortWayne,Indiana,is chargedinasinglecountIndictmentwith making a false statement on an FFL application onor about February 15, 2013.This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Fort Wayne Police Department.Thiscasehasbeenassignedtoandwillbeprosecutedby Assistant United States Attorney Tina L. Nommay.
TheUnitedStatesAttorney'sOfficeemphasizedthatanIndictmentismerelyanallegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed willbedetermined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Federal Charges Filed in Overland Park Bank RobberyRead the Press Release
KANSAS CITY, KAN. – Federal charges have been filed alleging a 35-year-old man armed with a hatchet robbed a bank in Overland Park, Kan., U.S. Attorney Barry Grissom said today.
Derek T. Brownlee, 35, Kansas City, Mo., was charged with one count of bank robbery. A criminal complaint filed in U.S. District Court in Kansas City, Kan., alleged that on July 1, 2013, Brownlee robbed the Metcalf Bank at 7800 College Boulevard in Overland Park. Wearing a bandanna over his face and carrying a hatchet, he jumped over the teller’s counter and demanded money. He took cash from a drawer and some personal items from a teller including a Kindle Fire and a Samsung cellular phone before fleeing the bank.
When officers from the Overland Park Police Department and the Kansas City, Mo., Police Department spotted his car, he led them on a chase at speeds up to 90 miles per hour. Brownlee stopped his car in the 8700 block of Indiana in Kansas City, Mo., and fled on foot. He was arrested by officers from the Kansas City, Mo., Police Department.
If convicted, he faces a maximum penalty of 20 years and a fine up to $250,000. The FBI, the Overland Park Police Department and the Kansas City, Mo., Police Department investigated. Assistant U.S. Attorney Kim Martin is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Father and Son Convicted of Operating $100 Million Ponzi Scheme That Targeted Members of the Lds ChurchRead the Press Release
PHOENIX. – Guy Andrew Williams, 42, and Brent F. Williams, 66, both of Mesa, Ariz., were convicted by a federal jury in Phoenix on June 28, 2013, of 38 counts of conspiracy, wire fraud, mail fraud, and money laundering. The two-week trial was conducted by U.S. District Judge Jack Zouhary, a visiting judge from the Northern District of Ohio.
U.S. Attorney John Leonardo stated, “Affinity fraud is a particularly reprehensible crime because it depends upon a betrayal of trust to defraud victims of their money. The defendants preyed upon those with whom they made connections through church or in the community. This verdict holds the defendants accountable for their crimes and sends a message to others who would engage in such misconduct.”
FBI Special Agent in Charge Douglas G. Price, Phoenix Division stated, "The guilty verdict rendered in this matter holds Guy and Brent Williams accountable for their actions. The FBI and the IRS are committed to investigating and pursuing those who conspire and prey on trusting individuals for their own personal gain. The FBI and our law enforcement partners will continue to combat fraud as it relates to money laundering, wire and mail fraud."
"The defendants lived lavish lifestyles and enriched themselves at the expense of their unsuspecting investors. This classic Ponzi scheme serves as an unfortunate reminder that everyone should exercise extreme caution before committing their hard-earned money to investment opportunities that promise returns that sound too good to be true" said Dawn Mertz, Special Agent in Charge of the Phoenix Field Office of Internal Revenue Service, Criminal
Investigation."This verdict should serve as a strong deterrent to others who would misuse our nation's mail system to commit mail fraud," said Acting Phoenix Division Postal Inspector in Charge Adrian Gonzalez. "The United States Postal Inspection Service remains dedicated to our mission to enforce the laws that defend the nation’s mail system from illegal use and ensure public trust in the mail. Postal Inspectors will continue to partner with fellow law enforcement agencies to bring those perpetuating fraud to justice."
According to the evidence at trial, Guy Andrew Williams and his father, Brent F. Williams, served as the managing director and chief financial officer, respectively, of a group of Mesa, Ariz.-based investment funds known as the “Mathon” entities. The evidence at trial showed that the Mathon entities collected more than $100 million in funds from investors from February 2002 until April 2005.
The evidence at trial further showed that Mathon’s investors, the majority of whom were members of the Church of Jesus Christ of Latter-Day Saints and hailed from Arizona, Utah, and Nevada, were generally told that their money would be used to make short-term loans to third-party borrowers at a high interest rate and that Mathon had an extensive track record of making such loans. In fact, the evidence at trial showed that the defendants, and their business partners, ran Mathon as a Ponzi scheme—that is, by using the overwhelming majority of incoming money from new investors to pay back initial investors. Finally, the evidence at trial showed that the defendants and their business partners paid themselves extravagant salaries and bonuses exceeding $10 million and also used their investors’ money to make millions of dollars of “loans” to companies they secretly controlled.
The sentencing of Guy Andrew Williams and Brent F. Williams is currently scheduled for Sept. 30, 2013, before Judge Zouhary. Also scheduled to be sentenced on that date are Duane Hamblin Slade and Russell Laurence Sewell, two other members of Mathon’s management team who pleaded guilty to related charges before trial.
The defendants face a potential maximum sentence of 20 years in federal prison on each count of conspiracy, wire fraud, and mail fraud, and a potential maximum sentence of 10 years in federal prison on each count of money laundering. Each count also carries a maximum fine of $250,000.
The investigation in this case was conducted by Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigations Division, the U.S. Postal Inspection Service, and the Securities Division of the Arizona Corporation Commission. The prosecution was handled by Assistant U.S. Attorneys Peter S. Sexton, Kevin M. Rapp, and Dominic Lanza.
CASE NUMBER: CR-09-1492-PHX-ROS
RELEASE NUMBER: 2013-050_WilliamsFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Eugene Woman Sentenced to Prison for Selling More than 5,000 Illegally Obtained Sprint Cellphones Through the InternetRead the Press Release
EUGENE, OREGON— On January 8, 2013, Tamara Diane Brown, 41, of Eugene, Oregon, pleaded guilty to one count of mail fraud in U.S. District Court in Eugene, admitting her involvement in a scheme to sell illegally obtained cellphones through the internet. Today she was sentenced to 21 months in federal prison and ordered to pay restitution to the victim.
Brown admitted that while working as an employee of The Pape Group, Inc. in Eugene, she used her corporate authority to order large quantities of Sprint cellphones, which she then diverted and had delivered to her home and the home of her friend. Brown sold the devices through eBay. The scheme to defraud The Pape Group, Inc. and Sprint took place between February 2010 and October 2011. Brown admitted that during the scheme, she improperly ordered 5,107 cellphones and obtained more than $305,000 from selling them. She deposited the ill-gotten gains into her personal bank account and spent the proceeds by making a down payment on a residence and for vehicles, trips to Hawaii and Las Vegas, clothes and other personal expenses. The Pape Group, Inc. and Sprint were unaware of the fraud during the time it was occurring. Brown was terminated once The Pape Group, Inc. discovered her scheme.
Chief United States District Judge Ann Aiken presided over the case ordered Brown to serve 21 months in federal prison. After her prison sentence Brown must serve three years of supervised release. Brown was also ordered to forfeit the $305,000 she made from the fraud, and pay full restitution to the Pape Group, Inc.
The case was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U. S. Attorneys Chris Cardani and Amy Potter.
Eleven Individuals Sentenced During the Month of June for Federal Supervised Release ViolationsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
WHEELING, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II, announced that during the month of June, 2013, eleven (11) individuals had their supervised release revoked for violating terms and conditions imposed by the United States District Court.
WHEELING DIVISION REVOCATIONS
(Judge Frederick P. Stamp, Jr.)
CALVIN SPEARS, age 32, of Wheeling, was sentenced to 18 months imprisonment for possession and use of marijuana and cocaine and failure to submit monthly supervision reports. SPEARS was originally sentenced on April 22, 2002, to 120 months imprisonment and
3 years of supervised release for interstate transportation of controlled substances. SPEARS’ sentence in this case will run consecutively to the 15-year sentence he is currently serving for a conviction in the Circuit Court of Ohio County.SEAN BURT, age 30, of Cleveland, Ohio, was sentenced to 14 months imprisonment for failure to attend drug aftercare, leaving the district without permission, new law violations and failure to notify probation officer of new arrest. BURT was originally sentenced on April
28, 2003, to 125 months imprisonment and 5 years of supervised release for the distribution of cocaine base within 1,000 feet of a school. BURT was remanded to the custody of the United States Marshal pending designation to a Federal institution.VANCE L. BURNS, age 53, of Wheeling, West Virginia, was sentenced to 8 months imprisonment to be followed by 48 months of supervised release for possession and use of cocaine. BURNS was originally sentenced on March 24, 2006, to 78 months imprisonment and
6 years of supervised release for the distribution of cocaine base within 1,000 feet of a playground. BURNS was remanded to the custody of the United States Marshal pending designation to a Federal institution.DANIEL BANKS, age 37, of Wheeling, was sentenced to 5 months imprisonment to be followed by 19 months of supervised release for the possession and distribution of a controlled substance on two occasions. BANKS was originally sentenced on January 23, 2006, to 92 months imprisonment and 2 years of supervised release for being a felon in possession of a firearm. BANKS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The United States was represented at the Wheeling revocation hearings by Assistant
United States Attorneys John C. Parr and David J. Perri.CLARKSBURG DIVISION REVOCATIONS (Judge Irene M. Keeley)
BRIAN GRIFFEY, age 43, of Monongah, West Virginia, was sentenced to 18 months imprisonment for unlawful possession of controlled substances and attempting to defeat a drug test. GRIFFEY was originally sentenced on March 27, 2003, to 77 months imprisonment and
3 years of supervised release for the distribution of heroin. GRIFFEY was remanded to the custody of the United States Marshal pending designation to a Federal institution.ED CORNEY, age 25, of Morgantown, West Virginia, was sentenced to 14 months imprisonment for possession of controlled substances, testing positive for the use of controlled substances, possession of dangerous weapon, failure to participate in drug rehabilitation program and failure to obtain GED and participate in educational training program. CORNEY was originally sentenced on November 24, 2008, to 18 months imprisonment and
3 years of supervised release for the distribution of cocaine. CORNEY was remanded to the custody of the United States Marshal pending designation to a Federal institution.PAUL BOWEN, age 27, of Clarksburg, West Virginia, was sentenced to 14 months imprisonment for failure to report for drug testing, failure to attend substance abuse counseling session, failure to report change in employment status, failure to report change of address, failure to follow instructions of probation officer, possession of opiates and cocaine, testing positive for the use of opiates and cocaine, and failure to provide proper paperwork to the probation officer. BOWEN, was originally sentenced on April 24, 2007, to 30 months imprisonment and 36 months of supervised release for the distribution of cocaine base. BOWEN was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The United States was represented at the Clarksburg revocation hearings by Assistant
United States Attorneys Shawn A. Morgan and Zelda E. Wesley.MARTINSBURG DIVISION REVOCATIONS (Judge Gina M. Groh)
STEPHANIE MILLER, age 25, of Martinsburg, was sentenced to 6 months imprisonment for failure to support monthly report forms, testing positive for the use of controlled substances, failure to attend counseling as directed and committing a new charge of shoplifting. MILLER was originally sentenced on April 7, 2009, to 24 months imprisonment and 3 years of supervised release for the distribution of cocaine. MILLER was remanded to the custody of the United States Marshal pending designation to a Federal institution.DEVIN PARRISH, age 28, of Morgan County, West Virginia, was sentenced to 4 months imprisonment for third DUI offense, battery on police officer and change of address without permission of the probation officer. PARRISH was originally sentenced on June 19, 2006, to 30 months imprisonment and 3 years of supervised release possession with intent to distribute cocaine base. PARRISH was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The United States was represented at the Martinsburg revocation hearings by Assistant
United States Attorney Paul T. Camilletti.ELKINS DIVISION REVOCATIONS
(Chief Judge John Preston Bailey)
ADRON H. CLAYPOOL, age 45, of Charleston, West Virginia, was sentenced to 9 months imprisonment for use and possession of controlled substances and alcohol, committing another crime while on supervised release and failure to notify probation officer of his arrest. CLAYPOOL was originally sentenced on April 24, 2006, to 63 months imprisonment and 3 years of supervised release for possession of pseudoephedrine with intent to manufacture methamphetamine. CLAYPOOL was remanded to the custody of the United States Marshal pending designation to a Federal institution.
MATTHEW SHANE BURNS, age 41, of Randolph County, West Virginia, was sentenced to 6 months imprisonment to be followed by 30 months of supervised release for committing another crime while on supervised release, failure to answer truthfully all inquiries of the probation officer and associating with others engaged in criminal activity. BURNS was originally sentenced on May 10, 2005, to 77 months imprisonment and 3 years of supervised release for being a felon in possession of a firearm. BURNS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The United States was represented at the Elkins revocation hearings by Assistant
United States Attorney Stephen D. Warner.The United States Probation Office carries out probation and pretrial services functions throughout the Northern District of West Virginia. With locations in Wheeling, Clarksburg, Martinsburg, and Elkins, the office works to assist the federal courts in the fair administration of justice, to protect the community, and to bring about long-term positive change in individuals under supervision. Jeff Givens is the Chief Probation Officer for the Northern District.
Detroit Man Pleads Guilty to Federal Oxycodone ChargeRead the Press Release
CHARLESTON, W.Va. – A man who drove an acquaintance from Detroit to Charleston in July 2011 in connection with an oxycodone scheme pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Terry Martin, 20, of Detroit, pleaded guilty in federal court in Charleston to aiding and abetting the possession of oxycodone with intent to distribute. On July 8, 2011, Martin drove an acquaintance from Detroit to Charleston. Martin knew that the acquaintance possessed oxycodone at the time and intended to deliver it to a third individual who was located in the Charleston area. Following their arrival to Charleston, Martin and the associate were arrested. Police later seized a total of 59 30-milligram oxycodone pills that were hidden on the associate’s person.
Martin faces up to 20 years in federal prison when he is sentenced on October 17, 2013 by United States District Judge Thomas E. Johnston.
The Metropolitan Drug Enforcement Network Team (MDENT) conducted the investigation. Assistant United States Attorney John Frail is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Defendant Pleads Guilty to Health Care Fraud in Connection with HIV Infusion ClinicRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael B. Steinbach, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office and Christopher B. Dennis, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), announced that defendant Jorge Alipio Perez Villa pleaded guilty yesterday to one count of healthcare fraud for his participation in a healthcare fraud scheme involving a purported HIV infusion clinic. Sentencing is scheduled for September 9, 2013 before U.S. District Judge Joan A. Lenard.
According to documents filed with the court and statements made during the plea hearing, Perez Villa was the purported owner and operator of an HIV infusion clinic, ABC Physician’s Group, Inc. ABC Physician’s Group, however, did not treat any patients. Rather, the defendant, through his company, fraudulently represented to Medicare that it was administering HIV infusion treatments to patients suffering from HIV. In truth, however, the defendant simply used the stolen Medicare numbers from unwitting Medicare beneficiaries to bill for treatments that were never provided. In this way, between March and September 2006, ABC Physician’s Group submitted approximately $5.3 million in fraudulent claims to Medicare. As a result of those claims, Medicare paid ABC Physician’s Group approximately $616,710. The defendant distributed the fraud proceeds to himself and others.
Mr. Ferrer thanked the FBI and HHS-OIG for their work on the case. This case is being prosecuted by Assistant U.S. Attorney Alicia Shick.
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.
David Gonzalez Sentenced for Illegal ReentryRead the Press Release
DAVID GONZALEZ (a/k/a Othoniel David Reconco), age 24, a citizen of Honduras, was sentenced today in federal court by U. S. District Judge Ivan L.R. Lemelle, announced U.S. Attorney Dana Boente. GONZALEZ was sentenced to 20 months imprisonment. In addition to the term of imprisonment, Judge Lemelle ordered that GONZALEZ be placed on three years of supervised release following the term of imprisonment, during which time the defendant will be under federal supervision and risks an additional term of imprisonment should he violate any terms of supervised release.
According to court documents, on April 17, 2013, GONZALEZ pled guilty to a one-count indictment admitting he was an alien who was previously removed and was knowingly and unlawfully found in the United States, in Jefferson Parish, Louisiana on January 24, 2013, without the Attorney General or Secretary of the Department of Homeland Security, having expressly consented to his re-application for admission into the United States. GONZALEZ’s sentence was subject to enhancement based on a previous aggravated felony conviction.
This case was investigated by United States Immigration and Customs Enforcement and the Jefferson Parish Sheriff’s Office. The case was prosecuted by Special Assistant United States Attorney Robert Weir.
Cyterra Corporation Agrees to Pay $1.9 Million to Resolve False Claims Act AllegationsRead the Press Release
BOSTON – CyTerra Corporation has agreed to pay the federal government $1.9 million to resolve civil liability arising from its failure to provide the United States Department of the Army with accurate, complete, and current cost or pricing data for its sales of mine detectors, the Justice Department announced today. CyTerra, headquartered in Waltham, manufactures equipment, including portable mine detectors, used by the United States military.
“The Department of Justice will hold accountable those who undermine the integrity of the public contract process in pursuit of financial gain,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division of the U. S. Department of Justice. “Those who wish to do business with the government are expected to do so fairly, and those who don’t will face the consequences.”
In 2003, the Department of the Army awarded CyTerra a contract for the production and delivery of AN/PSS-14 hand-held mine detection units. The contract was modified several times to provide for the production and delivery of additional mine detection units. The government contended that, in connection with the negotiations concerning three of the contract modifications, CyTerra knowingly failed to provide the Army with the most recent cost or pricing data on the number of labor hours needed to produce a mine detector. Under the Truth in Negotiations Act, CyTerra was required to provide the cost or pricing data that was “accurate, complete, and current.” The government alleged that if the Army had received such information, it would have negotiated a lower price.
“Contractors who negotiate with the government must be scrupulous in their dealings with the government,” said Carmen M. Ortiz, United States Attorney for the District of Massachusetts. “Government contractors should be on notice that the requirements of the Truth in Negotiations and False Claims Acts will be enforced.”
The civil settlement resolves a lawsuit pending in federal court in the District of Massachusetts under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery. The action was filed by Kevin Bartczak and Keith Aldrich, two former CyTerra executives. As part of today’s resolution, Bartczak and Aldrich will share $361,000 from the civil recovery.
The case is being handled by the U.S. Attorney’s Office for the District of Massachusetts and the Civil Division’s Commercial Litigation Branch, with investigative assistance from the Defense Criminal Investigative Service.
“The Defense Criminal Investigative Service (DCIS) is committed to working with its partner agencies, such as the U.S. Department of Justice, the Naval Criminal Investigative Service, and the Army Criminal Investigation Command, to ensure the integrity of the Defense Department’s procurement process,” said Leigh-Alistair Barzey, Resident Agent-in-Charge of the DCIS Boston Resident Agency. “This settlement agreement reflects that commitment and is a successful resolution of this investigation, which could not have occurred without the direction of the Department of Justice, and the assistance of the Defense Contract Audit Agency’s Investigations Support Division.”
The civil lawsuit is captioned United States ex rel. Bartczak, et al. v. CyTerra Corporation., Civil Action No. 06-CA-10550-NMG.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
CyTerra Corporation Agrees to Pay $1.9 Million<br /> to Resolve False Claims Act AllegationsRead the Press Release
CyTerra Corporation has agreed to pay the federal government $1.9 million to resolve civil liability arising from its failure to provide the U. S. Department of the Army with accurate, complete and current cost or pricing data for its sales of mine detectors, the Justice Department announced today. CyTerra, headquartered in Waltham, Mass., manufactures equipment, including portable mine detectors, used by the U. S. military.
“The Department of Justice will hold accountable those who undermine the integrity of the public contract process in pursuit of financial gain,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division of the U. S. Department of Justice. “Those who wish to do business with the government are expected to do so fairly, and those who don’t will face the consequences.”
In 2003, the Department of the Army awarded CyTerra a contract for the production and delivery of AN/PSS-14 hand-held mine detection units. The contract was modified several times to provide for the production and delivery of additional mine detection units. The government contended that, in connection with the negotiations concerning three of these contract modifications, CyTerra knowingly failed to provide the Army with the most recent cost or pricing data on the number of labor hours needed to produce a mine detector. Under the Truth in Negotiations Act, CyTerra was required to provide cost or pricing data that was “accurate, complete and current.” The government alleged that if the Army had received such information, it would have negotiated a lower price.“Contractors who negotiate with the government must be scrupulous in their dealings with the government,” said Carmen M. Ortiz, U.S. Attorney for the District of Massachusetts. “Government contractors should be on notice that the requirements of the Truth in Negotiations and False Claims Acts will be enforced.”
The civil settlement resolves a lawsuit pending in federal court in the District of Massachusetts under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the U. S. and share in any recovery. The action was filed by Kevin Bartczak and Keith Aldrich, two former CyTerra executives. As part of today’s resolution, Bartczak and Aldrich will share $361,000 from the civil recovery.The case is being handled by the U.S. Attorney’s Office for the District of Massachusetts and the Civil Division’s Commercial Litigation Branch, with investigative assistance from the Defense Criminal Investigative Service.
“The Defense Criminal Investigative Service (DCIS) is committed to working with its partner agencies, such as the U.S. Department of Justice, the Naval Criminal Investigative Service and the Army Criminal Investigation Command, to ensure the integrity of the Defense Department’s procurement process,” said Leigh-Alistair Barzey, Resident Agent-in-Charge of the DCIS Boston Resident Agency. “This settlement agreement reflects that commitment and is a successful resolution of this investigation, which could not have occurred without the direction of the Department of Justice and the assistance of the Defense Contract Audit Agency’s Investigations Support Division.”
The civil lawsuit is captioned United States ex rel. Bartczak, et al. v. CyTerra Corporation., Civil Action No. 06-CA-10550-NMG.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.Court approves “without hesitation” HSBC DPA that imposes a record corporate forfeiture of $1.256 billion, independent monitor and important remedial measures.Read the Press Release
Court approves “without hesitation” HSBC DPA that imposes a record corporate forfeiture of $1.256 billion, independent monitor and important remedial measures.
Conspiracy, Fraud and Other Charges Filed Against Pair from Northeast Ohio in 84-Count IndictmentRead the Press Release
A pair from Northeast Ohio were named in an 84-count superseding indictment, charged with a variety of schemes that resulted in a loss of more than $43,000, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Charged are Angelique Bankston, 41, of South Euclid, Ohio, and Jocelyn Hale, 31, of Cleveland.
Bankston and Hale were each charged with one count of conspiracy to commit bank fraud, three counts of conspiracy to commit money laundering, one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of conspiracy to commit mail fraud.
In addition, Bankston was charged with five counts of bank fraud, eight counts of mail fraud, five counts of aggravated identity theft, and 59 counts of money laundering.
Hale was charged with four counts of bank fraud, one count of aggravated identity theft, and five counts of money laundering.
The superseding indictment alleges that Bankston and Hale, using identities of several individuals without their authority, defrauded Citizens Bank, Lending Club Corporation, and Wells Fargo Bank.
Bankston and Hale funded a Wells Fargo Bank account with counterfeit funds totaling $13,027.22, according to the indictment.
Bankston and Hale also funded a second Wells Fargo Bank account with illegally obtained funds.
The superseding indictment also alleges that Bankston defrauded the Ohio Department of Job and Family Services (ODJFS) and Dollar Bank.
Bankston funded a Dollar Bank account with illegally obtained funds totaling $27,460. Bankston defrauded ODJFS by causing the United States Postal Service to hold mail for several individuals, without their authority. Bankston then stole U.S. Bank ReliaCards issued by ODFJS in the amount of $2,800 in the names of those individuals, according to the indictment.
If convicted, Bankston’s and Hale’s sentence will be determined by the Court after review of factors unique to this case, including their prior criminal record, if any, their role in the offenses, and the characteristics of the violations. In all cases the sentence will not exceed the statutory maximum and in most cases they will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Mark S. Bennett and Special Assistant United States Attorney Perry D. Mastrocola, following an investigation by the Internal Revenue Service, Criminal Investigation, Federal Bureau of Investigation, and United States Postal Service, Cleveland.
An indictment is only a charge and is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Connecticut Man Charged with Receiving Child PornographyRead the Press Release
Defendant employed as a photographer of summer camp children and youth sports teams
BOSTON – A Connecticut man was in U.S. District Court in Springfield today after being charged with receiving child pornography.
Emil Kaufman, 21, of Hamden, Conn. was charged and arrested on June 26 in a criminal complaint with receipt of child pornography. Kaufman worked as a photographer of youth sports teams and as a photographer and website designer for a summer camp for children with learning disabilities in New York. Kaufman was released from custody today after a detention hearing.
According to court documents, on or about October 22, 2012, federal agents downloaded child pornography video files on the Giga Tribe peer-to-peer file sharing network from a user identified as “koolkidlime1991.” On June 17, 2013, federal agents again downloaded child pornography video files on the Giga Tribe network from “koolkidlime1991.” The agents determined that during each download, “koolkidlime1991” was using an Internet connection subscribed to by Kaufman’s father at a residence in Stockbridge, Mass. On June 26, 2013, agents executed a search warrant at the Stockbridge residence and seized, among other items, a MacBook Pro that contained numerous child pornography files. The agents also located Kaufman in the residence. Kaufman admitted to the agents that he had a “bad habit” of trading child pornography, he has approximately 300 to 400 files of child pornography, and he traded child pornography as recently as the previous night.
The statutory penalty for receipt of child pornography provides for a minimum mandatory of five years and a maximum of 20 years in prison, followed by up to a lifetime supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz and Bruce M. Focuart, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Boston, made the announcement today. HSI received assistance from the Massachusetts State Police, the Stockbridge Police Department, and the FBI in New Haven, Connecticut. The case is being prosecuted by Assistant U.S. Attorney Steve Breslow of Ortiz’s Springfield Branch.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274, and messages will be promptly returned.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the complaint affidavit are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Columbus Man Sentenced to 72 Months in Marijuana and Cocaine Distribution CaseRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS, OHIO – James E. Johnston, a/k/a “Monk,” 50, of Columbus was sentenced to 72 months in prison, five years of supervised release, a $1,000 fine, and ordered to forfeit three real estate properties located in Columbus for his role in distributing marijuana and cocaine in the Columbus, Ohio area.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Acting Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office, Kevin McDermott, Assistant Special Agent in Charge, DEA, and Columbus Police Chief Kim Jacobs announced the sentence handed down July 1 by Senior U.S. District Judge Peter C. Economus.
In December 2012, Johnston pleaded guilty to one count of conspiracy to possess with the intent to distribute and to distribute 1,000 kilograms or more of marijuana and five kilograms or more of cocaine, and to one count of money laundering.
According to court documents, in November 2007, the DEA, IRS, and Columbus Police began investigating a marijuana trafficking organization operating in the Columbus area. Their investigation revealed that multi-thousand pounds of marijuana were being transported from Arizona to the Columbus area.
Between the mid 2000’s and October 2008, Johnston was directly involved with this marijuana trafficking organization that used recreational vehicles, trailers, tractors trailers, and rental vehicles to transport marijuana and bulk currency to and from Arizona and Ohio. The organization utilized stash houses and other locations in central Ohio to receive and distribute large shipments of marijuana. In addition, between late 2000 and 2001 Johnston received more than five kilograms of cocaine from Arizona for distribution in the Columbus, Ohio area.
Also, between 2000 and 2008 Johnston used the proceeds and profits from the narcotics conspiracies to conduct numerous financial transactions in excess of $10,000, in which he invested in real estate and real estate renovations, and obtained loans from financial institutions in an effort to launder his narcotics proceeds and profits.
Johnston will forfeit the following real estate properties located in Columbus, Ohio at 1334-1336 West Broad Street, 52 North Rogers Avenue, and 300 Cypress Avenue.
“By following the money trail Special Agents of IRS, Criminal Investigation help to disrupt and dismantle major drug trafficking organizations that attempt to conceal the true source of their money from the government,” said Kathy A. Enstrom, Acting Special Agent in Charge, IRS, Criminal Investigation. “This sentencing is a direct result of the excellent partnership IRS, the U.S. Attorney’s Office, the DEA, and the Columbus Division of Police has in combating major drug trafficking organizations, which have such a negative impact on our community."
U.S. Attorney Stewart acknowledged the investigation by special agents and officers of IRS-Criminal Investigation, DEA, and the Columbus Division of Police, as well as Assistant United States Attorneys David DeVillers and Michael Hunter who represented the United States in this case.
# # #Co-Owners of Hemet Food Market Indicted on Charges of Obstructing Labor Department Investigation into Failure to Pay OvertimeRead the Press Release
RIVERSIDE, California – Two brothers who owned and managed the El Toro Market in Hemet have been charged by a federal grand jury in a scheme to obstruct a United States Department of Labor investigation that determined they failed to pay overtime to more than a dozen employees.
Jafar “Jeff” Rahman, 44, of San Jacinto, the general manager of the store, was arrested at the store this morning without incident. His brother, Jalal “Jim” Rahman, 50, of Vista, remains at large.
The Rahman brothers were charged in an indictment returned on June 12 that alleges a plot to make false statements to the Labor Department and to obstruct the agency’s investigation that concluded El Toro Market owed 13 current or former employees $47,155 in overtime pay.
The indictment also charges Jeff Rahman with obstruction of justice for attempting to coerce El Toro employees to lie about receiving their back pay.
“Business owners must play by the rules and treat all of their employees fairly,” said United States Attorney André Birotte Jr. “The Rahman brothers not only tried to take advantage of their workers by not paying them money they earned, they also lied to federal investigators in an attempt to cover up their illegal actions.”
In March 2008, the Department of Labor’s Wage and Hour Division conducted an investigation and determined that the Rahmans’ company had violated federal laws related to overtime. The Labor Department instructed the store to pay back wages to its employees, but continued investigation showed that the Rahmans lied to their employees about the orders from the Labor Department, according to the indictment.
In the fall of 2008, the Rahmans had the affected employees sign paperwork indicating they had received their back pay, which they had never received. The Rahmans also had the employees sign checks for the amounts they were owed, but then they allegedly withheld the checks from the workers. Jeff Rahman, the indictment alleges, sent documents to the Labor Department that included false statements that the employees had received their overtime pay.
In the summer of 2012, as a grand jury began considering the case and issued subpoenas to El Toro employees, Jeff Rahman paid off or attempted to pay off three current or former employees to try to get them to lie to the grand jury, according to the obstruction of justice charges in the indictment. Jeff Rahman allegedly also threatened a fourth employee with loss of his job if he insisted that he had never received his back wages.
“Today’s indictment demonstrates the OIG’s commitment to continue working with our law enforcement partners to investigate those who allegedly obstruct Federal investigations to defraud workers of their wages,” said Abel Salinas, Special Agent in Charge of the Los Angeles Regional Office of the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
The indictment charges both Rahmans with one count of conspiracy, eight counts of making false statements and eight counts of obstruction of proceedings. Each of these charges carry a statutory maximum penalty of five years in federal prison.
The indictment further charges Jeff Rahman with four counts of obstruction of justice. Each of these obstruction charges carries a statutory maximum penalty of 20 years in prison.
The Rahmans are expected to be arraigned this afternoon in United States District Court in Riverside.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
The investigation in this case was conducted by the United States Department of Labor’s Office of Inspector General and Wage and Hour Division. Assistance was provided by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Release No. 13-090
Citizen of El Salvador Sentenced to Prison for Illegally Reentering U.S. After DeportationRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that MAURICIO ARTURO MADRID, also known as Mauricio Nava-Morales, 35, a citizen of El Salvador, was sentenced yesterday by United States District Judge Janet C. Hall in New Haven to six months of imprisonment for illegally reentering the United States after he was deported.
According to court documents and statements made in court, between September 2008 and August 2010, MADRID was removed from the United States to El Salvador on three separate occasions. MADRID again returned to the U.S. and, on July 30, 2012, he was arrested by Stamford Police and subsequently convicted of driving under the influence, second degree assault, interfering/resisting arrest and assault on personnel. On January 31, 2013, he was sentenced to six years of incarceration, suspended after 25 months.
Judge Hall ordered that MADRID begin serving his six-month federal sentence after his release from state custody.
MADRID has been detained since his arrest. On February 27, 2013, he pleaded guilty to one count of illegal reentry of a removed alien.
Since the age of 23, MADRID has been arrested at least 15 times while in the U.S.
This matter was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, with the assistance of the Stamford Police Department. The case was prosecuted by Assistant United States Attorney Deborah R. Slater.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Chief Executive Officer and President of Investment Fund Plead Guilty in Manhattan Federal Court to Orchestrating Nearly $10 Million Dollar Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ABDUL WALJI and RENIERO FRANCISCO, the Chief Executive Officer and President, respectively, of Arista LLC (“Arista”), a California investment fund, pled guilty today in Manhattan federal court to defrauding and misappropriating nearly $10 million from more than 35 investors by misrepresenting the nature and performance of the fund, and issuing fraudulent account statements to investors to cover up massive losses. WALJI also pled guilty to perpetrating a multi-million dollar fraudulent scheme with pension plan funds that he managed through three California-based trusts: Allied Benefits, Inc., Allied Benefits Trust, and Stone Lamm Trust (collectively, the “Trusts”). Both defendants were charged in December 2012, and pled guilty today before U.S. District Judge Denise Cote.
Manhattan U.S. Attorney Preet Bharara said: “Abdul Walji and Reniero Francisco told one lie after another in order to squeeze millions of dollars out of their investors, even as they misappropriated nearly $10 million, including at least $2.7 million solely for their own personal benefit. Walji even went a step further and orchestrated a second scheme that ultimately cost his victims another approximately $9.5 million. With today’s guilty pleas, they will begin to be held responsible for their actions and repay those wronged by their unlawful conduct.”
According to the three-count Superseding Information to which WALJI pled guilty, the Indictment to which FRANCISCO pled guilty, the defendants’ plea agreements and other documents in the public record:
The Arista Fraudulent Scheme
Arista began operations as an investment firm in February 2010, with its principal place of business in Newport Coast, California. In April 2011, Arista became a registered commodity pool operator (“CPO”) with the United States Commodity Futures Trading Commission (“CFTC”), and a National Futures Association (“NFA”) member.
In early 2010, WALJI and FRANCISCO began to solicit individuals to invest in Arista. From 2010 through 2011, the defendants carried out their fraudulent scheme through three methods. First, WALJI and FRANCISCO misrepresented to several Arista investors the nature of the company’s investments and the returns that investors would receive from investing in Arista. For example, WALJI and FRANCISCO falsely told investors that their money would be invested in safe, risk-free securities, when in fact much of the money was invested in options and futures. Second, WALJI and FRANCISCO sent fraudulent account performance statements to Arista investors that misrepresented the value of their investments. In an effort to secure additional contributions, the defendants also concealed Arista’s trading losses, and told investors that they were profiting from their investments when they were actually losing money. Finally, WALJI and FRANCISCO misappropriated at least $2.7 million from Arista’s investors through fees to which they were not entitled, and which WALJI and FRANCISCO diverted for their own personal benefit. Based on their false representations, WALJI and FRANCISCO collected nearly $10 million from over 35 investors, and they ultimately misappropriated a large portion of the money.
Walji’s Pension Plan Fraudulent Scheme
From early 2008 through June 2013, WALJI also perpetrated a separate fraudulent scheme using pension plan funds that he administered. Similar to the scheme set forth above, WALJI executed his fraudulent scheme through three principal methods. First, WALJI made oral misrepresentations to existing and potential clients of the Trusts concerning: (i) the nature of the Trusts’ pension plan investments; (ii) the investment value and past performance of the pension plans; and (iii) the source of funds distributed to plan participants who had reached retirement and/or who had requested distributions. Second, WALJI distributed fraudulent statements to clients concerning the value of their accounts and the prior performance of their pension plans in order to forestall redemption requests, induce new clients to contribute to the plans, and induce existing clients to make additional contributions. As selected clients reached retirement age or requested disbursements, WALJI sent those clients money that he represented to be proceeds of their individual pensions, when in fact he knew that the purported disbursements were often funds contributed by other clients. Third, WALJI misappropriated approximately $300,000 of client funds for his personal use. In total, this scheme caused losses to approximately 35 additional victims in an aggregate amount of approximately $9.5 million.
WALJI, 60, of San Juan Capistrano, California, pled guilty to one count of conspiracy to commit securities fraud and wire fraud, one count of commodities fraud, and one count of securities fraud. The securities fraud charge carries a maximum sentence of 20 years in prison; the commodities fraud charge carries a maximum sentencing of 10 years in prison; and the conspiracy charge carries a maximum sentence of five years in prison. FRANCISCO, 57, of Newport Coast, California, pled guilty to one count of conspiracy to commit securities fraud and wire fraud and one count of securities fraud.
In connection with their guilty pleas, WALJI consented to forfeit $13.6 million and FRANCISCO consented to forfeit $4.1 million. The defendants also agreed to forfeit the proceeds of several bank and trading accounts.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation and also thanked the U.S. Commodities Futures Trading Commission for its assistance.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys David I. Miller and Christopher D. Frey are in charge of the prosecution. Assistant U.S. Attorney Paul Monteleoni is in charge of the asset forfeiture related to the prosecution.
U.S. v. Abdul Walji S1 Information
US v. Abdul Walji & Reniero Francisco IndictmentCharlotte Armed Career Criminal Sentenced to 20 Years in Prison for Firearms ViolationsRead the Press Release
CHARLOTTE, N.C. – Chief U.S. District Judge Frank D. Whitney sentenced a Charlotte armed career criminal to 20 years in prison for firearms violations, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Shirley Ingram, Jr., a/k/a Rahim, 56, of Charlotte, was also sentenced to three years of supervised release following his prison term.
Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, joins U.S. Attorney Tompkins in making today’s announcement.
In January 2011, following a four-day trial, a Charlotte jury convicted Ingram for possessing a firearm in furtherance of a drug trafficking crime and for being a felon in possession of a firearm. According to evidence presented at trial and yesterday’s sentencing hearing, on August 8, 2009, law enforcement responded to a 911 emergency call involving domestic violence. Court records indicate that when law enforcement arrived at the scene and while investigating the call, they discovered that Ingram had a Glock, Model 27, .40 caliber pistol in a cooler in the trunk of a 2003 BMW vehicle he was driving. Along with the pistol in the car, law enforcement also found marijuana residue and a digital scale. Ingram’s prior felony convictions prohibit him from carrying a firearm.
At sentencing, Ingram was deemed an armed career criminal and received an enhanced sentence. Ingram had been previously convicted of over 20 crimes, including second degree kidnapping; breaking, entering and larceny; assault on a female; and possession of controlled substances. Ingram had been previously deemed an armed career criminal in 1993 and was sentenced to 235 months in prison in U.S. District Court in Charlotte. In that case, Ingram was observed by a Charlotte police officer walking down a street in Charlotte carrying a shotgun, which was later found to be stolen.
“Ingram’s 20-year prison sentence was warranted given the facts of this case and his extensive criminal history. Protecting our community by taking violent repeat offenders off the streets remains one of the cornerstone functions of this office,” said U.S. Attorney Tompkins.
Ingram has been in federal custody in the Western District of North Carolina since his arrest in April of 2010. Upon designation of a federal facility, he will be transferred into the custody of the Federal Bureau of Prisons. Federal sentences are served without the possibility of parole.
The ATF, assisted by the Charlotte-Mecklenburg Police Department, handled the investigation, as part of ATF’s ongoing commitment to reduce violent crime and other threats to public safety. The prosecution was handled by Assistant U.S. Attorney Ann Claire Phillips, of the U.S. Attorney’s Office in Charlotte.
Charleston Woman with Detroit Pill Ties Pleads Guilty to Federal Oxycodone ChargeRead the Press Release
CHARLESTON, W.Va. – A Charleston woman with ties to a Detroit pill supplier pleaded guilty today to a federal oxycodone charge, announced U.S. Attorney Booth Goodwin. Christy Stevens, 31, pleaded guilty in federal court in Charleston to conspiracy to distribute oxycodone. On July 6, 2011, police conducted a traffic stop of Stevens’ vehicle. During a search of the vehicle, officers observed a large amount of cash inside Stevens’ purse. Stevens agreed to provide a statement to police regarding the source of the cash. After being advised of her Miranda rights, Stevens told police that the $8,000 in her purse was proceeds from illegal pill transactions.
Stevens also told police that for eight months, she received oxycodone pills from a source of supply located in Detroit. Stevens later sold the 30-milligram oxycodone pills in and around Charleston and also took a portion of the pills for her personal use.
Stevens faces up to 20 years in federal prison when she is sentenced on October 17, 2013 by United States District Judge Thomas E. Johnston.
The Metropolitan Drug Enforcement Network Team conducted the investigation. Assistant United States Attorney John Frail is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Caroline County Man Sentenced for Stealing Property from the Goddard Space Flight CenterRead the Press Release
Stole Tools and Scaffolding Which He Sold at Pawn Shops in Baltimore, Anne Arundel and Queen
Anne’s Counties
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Brandon Scott Gauss, age 28, of Preston, Maryland today to a year and a day followed by three years of supervised release for stealing government property from the Goddard Space Flight Center, part of the National Aeronautics and Space Administration (NASA). Judge Grimm also ordered that Gauss pay restitution of $11,574.35 to the U.S. government; $4,461 to Fast Cash Pawn Shop in Annapolis, Maryland; and forfeit at least $29,412.89.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Inspector General Paul K. Martin, NASA Office of Inspector General.
According to his plea agreement, Gauss was a contract employee at NASA. As an engineering technician at the Goddard Space Flight Center, he had access to tools and other property NASA owned. From October 2011 through November 2012, Gauss stole tools and aluminum scaffolding belonging to the government, which he sold to pawn shops for cash. Gauss made over 60 visits to pawn shops throughout Maryland, including Baltimore, Anne Arundel and Queen Anne Counties, and received at least $16,974. The government has recovered some of the items, worth at least $29,736. Gauss admits that he owes the government at least $11,574.35, the money he received from selling the stolen materials the government has been unable to recover.
United States Attorney Rod J. Rosenstein praised the NASA OIG, Office of Investigations for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Leah J. Bressack and Sujit Raman, who prosecuted the case.