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Tuesday 14 May 2013
Roswell Man Pleads Guilty to Carrying a Firearm in Relation to a Drug Trafficking CrimeRead the Press Release
ALBUQUERQUE – Richard D. Crisman, 28, of Rio Rancho, N.M., was sentenced today to 97 months in federal prison followed by 25 years of supervised release for his conviction for receipt of child pornography. Crisman also was ordered to pay a $15,000.00 fine. He will be required to register as a sex offender after he completes his prison sentence. Crisman’s sentence was announced by U.S. Attorney Kenneth J. Gonzales and Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) El Paso.
Crisman was arrested in Sept. 2011 as part of Operation Predator, an investigative effort by federal, state and local law enforcement affiliates of the New Mexico Internet Crimes Against Children (ICAC) Task Force aimed at identifying individuals throughout New Mexico involved in the distribution, receipt, and possession of child pornography through peer-to-peer file sharing programs. Twenty-two search warrants were executed and eight defendants were arrested in Sept. 2010 as a result of Operation Predator. All eight defendants have been convicted of child pornography offenses and are serving prison sentences.
Crisman was charged with three counts of receipt of a visual depiction of minors engaged in sexually explicit conduct, and three counts of possession of a matter containing visual depictions of minors engaged in sexually explicit conduct. In Feb. 2012, Crisman pleaded guilty to Count 2 of the indictment, a receipt of child pornography charge.
According to court records, Crisman was arrested as a result of an undercover investigation that revealed that Crisman received and possessed child pornography images through a peer-to-peer file sharing program in Nov. 2009, Feb. 2010, April 2010, June 2010 and July 2010. As a result of the investigation, in Sept 2010, law enforcement officers executed a search warrant at Crisman’s residence and seized computers and computer-related media that contained evidence of child pornography. While the search warrant was executed, Crisman voluntarily participated in a recorded interview during which he admitted using his computers to view child pornography.
Crisman has acknowledged that a forensic examination of his computers and computer-related media uncovered more than 14,000 images and 40 videos of child pornography. He also has acknowledged that the National Center for Missing and Exploited Children determined that the child pornography images and videos found on his computers and computer-related media included 1,884 child pornography images of more than 100 children who have been identified as child pornography victims and have been rescued, and nine child pornography videos of five children who have been identified as child pornography victims and have been rescued.
As required by Crisman’s plea agreement, Counts 1, 3 and 4 through 6 of the indictment were dismissed after Crisman was sentenced.
The case is being prosecuted by Assistant U.S. Attorney Charlyn E. Rees, and was investigated by HSI New Mexico, the New Mexico State Police, the New Mexico Regional Computer Forensic Lab and other agencies that participate in the New Mexico ICAC Task Force. The law enforcement agencies that participated in Operation Predator include: Albuquerque Police Department, Farmington Police Department, FBI, HSI, Las Cruces Police Department, New Mexico Attorney General’s Office, New Mexico State Police, Rio Rancho Police Department, Santa Fe Police Department, the United States Marshal’s Office in Las Cruces, the First Judicial District Attorney’s Office, the Fifth Judicial District Attorney’s Office, and the Eighth Judicial District Attorney’s Office.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.Roswell Man Pleads Guilty to Carrying a Firearm in Relation to a Drug Trafficking CrimeRead the Press Release
ALBUQUERQUE – Tony Andy Gonzales, 61, of Roswell, N.M., pleaded guilty this afternoon to carrying a firearm in relation to a drug trafficking crime under a plea agreement with the U.S. Attorney’s Office. Gonzales’ guilty plea was announced by U.S. Attorney Kenneth J. Gonzales and Thomas G. Atteberry, Special Agent in Charge of the Phoenix Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Gonzales was arrested on Nov. 15, 2012, on a criminal complaint charging him with being a felon in possession of a firearm and subsequently was indicted and charged with (1) being a felon in possession of a firearm, (2) possession of heroin with intent to distribute, and (3) carrying a firearm in relation to a crime of violence. According to court records, Gonzales possessed a firearm and heroin on Sept. 27, 2012, in Chaves County, N.M. At the time, Gonzales was prohibited from possessing firearms and ammunition because he previously had been convicted of burglary and drug trafficking felony charges in the 5th Judicial District Court for the State of New Mexico in Chaves County.
This afternoon, Gonzales entered a guilty plea to Count 3 of the indictment and admitted possessing a firearm to further his drug trafficking activity. Gonzales acknowledged that on Sept. 27, 2012, officers executed a search warrant at his residence. Gonzales admitted that, at the time the officers were executing the search warrant, he was in possession of 24 individually wrapped packets of heroin which he intended to distribute to others. Gonzales also admitted that he was in possession of a loaded firearm that was easily accessible and located near a lockbox containing his drug proceeds.
Gonzales has been in federal custody since his arrest and will remain detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Gonzales faces a prison sentence of at not less than five years and not more than 40 years. Under the terms of the plea agreement, Counts 1 and 2 of the indictment will be dismissed after Gonzales is sentenced.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, The Chaves County Metro Narcotics Task Force and the Roswell Police Department with assistance from the 5th Judicial District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Brock Taylor of the U.S. Attorney’s Las Cruces Branch Office as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Rio Rancho Man Sentenced to Ninty-Seven Months in Federal Prison for Child Pornography ConvictionRead the Press Release
ALBUQUERQUE – Richard D. Crisman, 28, of Rio Rancho, N.M., was sentenced today to 97 months in federal prison followed by 25 years of supervised release for his conviction for receipt of child pornography. Crisman also was ordered to pay a $15,000.00 fine. He will be required to register as a sex offender after he completes his prison sentence. Crisman’s sentence was announced by U.S. Attorney Kenneth J. Gonzales and Special Agent in Charge Dennis A. Ulrich, II, of Homeland Security Investigations (HSI) El Paso.
Crisman was arrested in Sept. 2011 as part of Operation Predator, an investigative effort by federal, state and local law enforcement affiliates of the New Mexico Internet Crimes Against Children (ICAC) Task Force aimed at identifying individuals throughout New Mexico involved in the distribution, receipt, and possession of child pornography through peer-to-peer file sharing programs. Twenty-two search warrants were executed and eight defendants were arrested in Sept. 2010 as a result of Operation Predator. All eight defendants have been convicted of child pornography offenses and are serving prison sentences.
Crisman was charged with three counts of receipt of a visual depiction of minors engaged in sexually explicit conduct, and three counts of possession of a matter containing visual depictions of minors engaged in sexually explicit conduct. In Feb. 2012, Crisman pleaded guilty to Count 2 of the indictment, a receipt of child pornography charge.
According to court records, Crisman was arrested as a result of an undercover investigation that revealed that Crisman received and possessed child pornography images through a peer-to-peer file sharing program in Nov. 2009, Feb. 2010, April 2010, June 2010 and July 2010. As a result of the investigation, in Sept 2010, law enforcement officers executed a search warrant at Crisman’s residence and seized computers and computer-related media that contained evidence of child pornography. While the search warrant was executed, Crisman voluntarily participated in a recorded interview during which he admitted using his computers to view child pornography.
Crisman has acknowledged that a forensic examination of his computers and computer-related media uncovered more than 14,000 images and 40 videos of child pornography. He also has acknowledged that the National Center for Missing and Exploited Children determined that the child pornography images and videos found on his computers and computer-related media included 1,884 child pornography images of more than 100 children who have been identified as child pornography victims and have been rescued, and nine child pornography videos of five children who have been identified as child pornography victims and have been rescued.
As required by Crisman’s plea agreement, Counts 1, 3 and 4 through 6 of the indictment were dismissed after Crisman was sentenced.
The case is being prosecuted by Assistant U.S. Attorney Charlyn E. Rees, and was investigated by HSI New Mexico, the New Mexico State Police, the New Mexico Regional Computer Forensic Lab and other agencies that participate in the New Mexico ICAC Task Force. The law enforcement agencies that participated in Operation Predator include: Albuquerque Police Department, Farmington Police Department, FBI, HSI, Las Cruces Police Department, New Mexico Attorney General’s Office, New Mexico State Police, Rio Rancho Police Department, Santa Fe Police Department, the United States Marshal’s Office in Las Cruces, the First Judicial District Attorney’s Office, the Fifth Judicial District Attorney’s Office, and the Eighth Judicial District Attorney’s Office.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as part of the New Mexico ICAC Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 64 federal, state and local law enforcement agencies associated with the ICAC Task Force, which is funded by a grant administered by the New Mexico Attorney General’s Office. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.Registered Sex Offender Sentenced to Life in Prison for Producing Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Blue Springs, Mo., man who is a registered sex offender was sentenced in federal court today for creating videos of his sexual assault of a child.
William G. Weiss, 40, of Blue Springs, was sentenced by U.S. District Judge Greg Kays to life in federal prison without parole.
Weiss was required to register as a sex offender due to his prior felony convictions for attempted statutory sodomy of two other child victims. This case marked the first prosecution in the Western District of Missouri under a federal statute that classifies violent crimes against children. The statute mandates a life sentence if a defendant with a prior sex conviction (in which the victim was a child) is convicted of a federal sex offense in which the victim is a child.
On Nov. 21, 2012 Weiss pleaded guilty to producing child pornography. Weiss admitted that he used an 8-to-9-year-old minor, identified as Jane Doe, to produce child pornography.
Law enforcement officers discovered a video of child pornography on Weiss’s cell phone during an investigation into his sexual assault of another minor. (Weiss has been charged in Jackson County Circuit Court with statutory sodomy and attempted statutory rape related to this conduct.) Investigators found a self-produced video of Weiss having sexual intercourse with Jane Doe, whom he identified as the daughter of a friend. Investigators found two more child pornography movies that depicted the same child victim, Jane Doe, on Weiss’s computer. Weiss admitted that he had sexually assaulted her eight to 10 times.
This case was prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by the Lee’s Summit, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Redby Man Sentenced for Harboring A FugitiveRead the Press Release
MINNEAPOLIS—Yesterday in federal court, a 23-year-old Redby man was sentenced for harboring a fugitive last spring. On May 13, 2013, United States District Court Judge John R. Tunheim sentenced Andrew Oakgrove to 30 months in prison on one count of harboring and concealing a fugitive. Oakgrove was indicted on December 10, 2012, and pleaded guilty on February 6, 2013.
In his plea agreement, Oakgrove admitted that on April 30, 2012, he concealed Jason King from federal authorities. King was wanted on a federal arrest warrant for his indictment in connection to the December 30, 2011, armed robbery of Newby’s Market in Bemidji. Oakgrove also admitted leading police on a high-speed pursuit over several miles. Both men were arrested following the pursuit.
This case was the result of an investigation by the Red Lake Tribal Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Jeffrey S. Paulsen.Porcupine Man Sentenced for Stabbing A ManRead the Press Release
United States Attorney Brendan V. Johnson announced that a Porcupine, South Dakota man convicted of Assault Resulting in Serious Bodily Injury was sentenced on May 3, 2013 by Chief Judge Jeffrey L. Viken, United States District Court.
Lucas J. Tail, age 19, was sentenced to time served and 3 years of supervised release and ordered to pay $100 to the Federal Crime Victims Fund.
In June 2012, at Pine Ridge, Tail stabbed a man with a knife, causing him extreme pain and injuries to his sternum, left shoulder, and back. Tail pleaded guilty on December 5, 2012.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Sarah B. Collins prosecuted the case.
Porcupine Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Porcupine, South Dakota man convicted of Assault by Striking, Beating, and Wounding was sentenced on May 3, 2013 by U.S. Magistrate Judge Veronica L. Duffy.
Quentine Lone Elk, age 46, was sentenced to 2 years of probation and ordered to pay $10 to the Federal Crime Victims Fund.
In October 2011, near Porcupine, Lone Elk cut another man with a knife. He pled guilty on March 8, 2013.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Pine Ridge Woman Pleads Guilty to Assaulting an OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that Pamela Belt, age 49, of Pine Ridge, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy on May 8, 2013 and pled guilty to Assault on a Federal Officer.
The maximum penalty upon conviction is 8 years' imprisonment and/or a $250,000 fine.
On June 10, 2012, near Oglala, Belt physically resisted an Oglala Sioux Tribal officer as he was attempting to arrest her.
The investigation was conducted by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. The case is being prosecuted by Assistant U.S. Attorney Eric Kelderman.
A presentence investigation was ordered and a sentencing date will be set. The defendant was released on bond pending sentencing.
Physical Therapy Owner and Employees Charged with FraudRead the Press Release
BOSTON – A Brockton woman and three of her employees were charged with defrauding insurance companies in connection with physical therapy services.
Walkyria Massie, a/k/a Vicky Lopes, 37, of Brockton; Edward Rossi, 53, of Rochester, Deidre Chouinard, 36, of North Attleboro; and Manuela Andrade, 24, of Brockton, were charged in an indictment unsealed yesterday with conspiracy to commit mail fraud and three separate instances of mail fraud.
The indictment alleges that Massie was the owner and operator of Westgate Physical Therapy in Brockton. Patients would seek treatment at Westgate for minor injuries, generally sustained in car accidents. Massie employed Chouinard, a physical therapist, Rossi, a physical therapy assistant, and Andrade, an office manager. The indictment alleges that Massie, Rossi, Chouinard, and Andrade conspired together to falsify patient treatment charts to reflect therapy that was either never given, or was performed by unlicensed personnel, including Massie herself. Massie caused these fraudulent physical therapy claims to be submitted by mail to private insurance companies for payment. Various insurance companies paid more than $400,000 in bodily injury claims to Westgate and its patients during a two year period, based on these fraudulent submissions.On the charges of conspiracy to commit mail fraud and mail fraud, the defendants face a statutory maximum penalty of 20 years in prison, followed by three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz, Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, and Anthony DiPaolo, Vice President/Chief of Investigations of the Insurance Fraud Bureau of Massachusetts, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Shelbey Wright of Ortiz’s Health Care Fraud Unit.
The details contained in the indictment are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Philadelphia Man Pleads Guilty to Forging Federal Judge’s Signature to Escape from PrisonRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Kevin William Small, age 50, pleaded guilty today in Harrisburg before United States District Court Judge Gene E.K. Pratter to mail fraud, escape, forging judicial signatures, use of a counterfeit seal and possession of a counterfeit seal. A sentencing date has not been scheduled.
According to United States Attorney Peter J. Smith, in 2007, Small was convicted of four counts of filing false tax claims following a week-long trial before District Court Judge Christopher C. Conner. Evidence presented during the trial showed that Small was a long-term state prisoner who for at least four years had filed for an income tax refund claiming that he was due a substantial tax refund. Trial evidence from 2007 also established that Small created documents to substantiate his fictitious employment and opened fraudulent bank accounts to receive the tax refunds.
Judge Conner sentenced Small to serve 135 months in federal prison and directed that he begin serving this sentence after he finished serving his state sentence at Huntingdon State Prison. Small’s conviction and sentence were affirmed by appellate courts following two rounds of appeals.Small’s state sentence expired on January 5, 2012 and he was scheduled to be turned over to federal prison authorities on that day. However, state prison officials had received a document that purported to be signed and sealed by Judge Conner and the Clerk of Courts for the Middle District of Pennsylvania that stated that Small’s federal conviction had been vacated. As a result, Small was released on that day rather than being turned over to federal prison authorities to begin serving his federal sentence.
The escape was discovered when a federal agent called the state prison on another matter on March 8, inquired about Small, and learned that Small had been released to the street on January 5, 2012.
Small was located by the U.S. Marshals Service and arrested in a residence in Philadelphia on March 5, 2012. Many documents that appeared to be forged or fraudulent were seized from the residence at the time of his arrest, including partially-prepared court documents that purportedly freed other state prisoners.
Small was indicted on the most recent charges in March 2012. A superseding indictment was returned in December 2012. Judge Pratter, a federal Judge in the Eastern District of Pennsylvania, was assigned to the case because the defendant’s conduct involved forgery of the signature of a federal Judge in the Middle District of Pennsylvania.
This case was investigated by the United States Marshals Service, the Federal Bureau of Investigation, and the Internal Revenue Service Criminal Investigations and is assigned to Assistant U.S. Attorney Christy H. Fawcett.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is 40 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Petties Co-Conspirator Clinton Lewis Sentenced to Life in Federal PrisonRead the Press Release
Memphis, TN – Clinton Lewis, a/k/a “Goldie”, 36, of Memphis, TN was sentenced today by U.S. District Judge Samuel H. Mays, Jr. to life in federal prison for his role in the Craig Petties Drug Trafficking Organization (DTO), announced U.S. Attorney Edward L. Stanton III and Resident Agent-in-Charge of the Drug Enforcement Administration’s Memphis office Brian Chambers.
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On March 23, 2012, Lewis was convicted of one count of racketeering conspiracy; two counts of violent crime in aid of racketeering activity for his role in the kidnapping of Marcus Turner and the murder of Mario McNeal; one count of conspiracy to commit murder for hire for his role in the murder of Mario McNeal; one count of conspiracy to possess with intent to distribute more than five kilograms of cocaine; and one count of conspiracy to commit money laundering.
Lewis was sentenced to life in prison on all charges, except money laundering, for which he was sentenced to 20 years. All sentences will run concurrently. There is no parole in the federal system.
As outlined in the indictment, Lewis was a member of a criminal racketeering enterprise, the Petties DTO, whose members conspired with cocaine traffickers in Mexico, Texas, Mississippi, North Carolina, Georgia, Tennessee, and elsewhere. As part of the conspiracy, cocaine was prepared, packaged and/or stored, prior to distribution to buyers in “stash houses.” The defendant and the co-conspirators used these “stash houses” to avoid detection by law enforcement authorities. It was further part of the conspiracy that the defendants and their co-conspirators sorted, counted, packaged, and stored large amounts of cash derived from the sale of controlled substances in various co-conspirators’ premises in the Western District of Tennessee. The co-conspirators delivered large amounts of currency derived from the sale of cocaine from the Western District of Tennessee and elsewhere to Texas and Mexico. In order to facilitate continued drug trafficking and in order to prevent others from cooperating with law enforcement authorities, it was further part of the conspiracy that the defendant and the co-conspirators did kill other people. Over thirty people have been charged and convicted as part of this investigation.
The case was investigated by the Drug Enforcement Administration, the United States Marshals Service, the Memphis Police Department, the Shelby County Sheriff’s Department and the Olive Branch Police Department. The case is being prosecuted by Assistant United States Attorney David Pritchard on behalf of the government.Passaic County Man Admits Role in Long-Running, International Counterfeit Goods Trafficking SchemeRead the Press Release
Forfeits $200,000 in Ill-Gotten Gains to the United States
NEWARK, NJ – A Passaic County, N.J., man today admitted participating in a multi-year, international conspiracy to traffic in counterfeit goods, U.S. Attorney Paul J. Fishman announced.
Aref Abuhadba, 49, of Totowa, N.J., pleaded guilty before U.S. District Judge Dennis M. Cavanaugh to an Information charging him with one count of conspiring to traffic in counterfeit goods. As part of his guilty plea, Abuhadba presented the government with a check for $200,000 today, representing his ill-gotten gains from his involvement in the conspiracy.
According to documents filed in this case and statements made in court:From 2003 through 2010, Abuhadba and others conspired to import counterfeit Nike sneakers and counterfeit Walt Disney-brand comforters and blankets from the People’s Republic of China (PRC) for resale in the United States. Abuhadba worked in concert with a conspirator in the PRC, who acted as a middleman between the manufacturers of counterfeit goods in the PRC and Abuhadba in the United States. The conspirator purchased counterfeit goods from manufacturers in the PRC and arranged for them to be shipped various ports of entry within the United States. Once the containers arrived, other conspirators arranged for them to be delivered to warehouses and other locations throughout the United States controlled by Abuhadba, who would then distribute the counterfeit goods to customers throughout the United States.
Abuhadba was also responsible for collecting money from customers and wiring the proceeds of the scheme to the conspirators. For his participation, Abuhadba received a fee of up to $42,000 for each container that was successfully imported into the United States. If a container was seized by law enforcement, however, Abuhadba was sometimes responsible for a portion of the costs of the goods in the seized container.
According to e-mails reviewed by law enforcement during the investigation, in late 2008, a number of containers with contents valued in the millions of dollars were seized by U.S. Customs and Border Protection (CBP). On Sept. 17, 2008, CBP agents inspected a container at Los Angeles/Long Beach Seaport in Long Beach, Calif., destined for Abuhadba in New Jersey. There were more than 10,000 pairs of counterfeit Nike Air Force One sneakers, bearing various Nike trademarks in the container. The approximate cost of the goods seized was approximately $200,000, and their approximate retail value was $1.5 million. Following the 2008 seizures, Abuhadba exchanged numerous e-mails with the PRC conspirator discussing the seizures and encouraged the PRC conspirator to send false letters to the CBP concerning the seizures, stating that the seized containers were delivered by mistake and were not intended for Abuhadba.
The count to which the defendant pleaded guilty is punishable by a maximum penalty of five years in prison and a fine of up to $250,000, or twice the gross amount of any pecuniary gain derived from the offense, or pecuniary loss sustained by any victims of the offense. Sentencing is scheduled for Sept. 9, 2013.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Gurbir S. Grewal of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
13-193Defense counsel: Edward Bilinkas and Sara Sencer McCardle Esqs., Randolph, N.J.
Abuhadba, Aref Information
Owner of New Jersey Aircraft Parts Brokerage Company Arrested, Charged with Laundering Scrapped Jet Engine PartsRead the Press Release
NEWARK, N.J. – The owner of an aircraft parts broker in Ridgefield, N.J., will appear in Newark federal court today following his arrest last night for an alleged conspiracy to launder scrapped jet engine parts, U.S. Attorney Paul J. Fishman announced.
Gideon Vaisman, 73, of Edgewater, N.J., the sole owner of Tara Technology Corp. in Ridgefield, is charged in a criminal complaint with one count of conspiracy to commit wire fraud. He will appear on the charges this afternoon before U.S. Magistrate Judge Madeline Cox Arleo.
According to the complaint unsealed upon Vaisman’s arrest:
Vaisman orchestrated a scheme, from April 2005 to May 2013, to defraud Federal Aviation Administration (FAA) repair stations, aircraft parts brokers, aircraft parts end-users and others by using phony documents to resell jet engine parts obtained from scrap metal dealers.
Among other things, Vaisman instructed Tara Technology’s general manager, Carmine Coviello, 61, to use his Suffern, N.Y.-based aircraft parts broker and seller company, Shelby Enterprises, to purchase vital jet engine parts called “blades” and “vanes” from scrap metal dealers. Once Coviello purchased the blades and vanes, he had them cleaned, sanded and inspected at a metal shop to conceal that they had been scrapped and on occasion rejected for repair by an FAA repair station. He did this at Vaisman’s direction and in violation of FAA regulations, which mandate that only FAA-certified repair stations or certified airframe and power plant mechanics may perform such work on aircraft parts.
Also at Vaisman’s direction, Coviello conducted sham sales of the illegally altered blades and vanes to Tara Aviation, Ltd., an aircraft parts broker and seller – incorporated in Tortola, British Virgin Islands, and located in Guernsey, United Kingdom – which was controlled and financed by Vaisman. The sole purpose of these sales, which occurred only on paper, was to generate fraudulent trace paperwork for the parts. The parts never left New Jersey. Trace paperwork documents the history of an aircraft part and includes information such as the part’s manufacturer, the aircraft on which the part was used and how it was used. The paperwork is also employed in determining whether an aircraft or aircraft part has been subject to severe stress or heat as would occur during a major engine failure, accident or fire.
Vaisman, Coviello and a sales representative stored the blades and vanes in Tara Technology’s warehouse inventory, ultimately selling them to aircraft brokers, airlines and others on behalf of Tara Aviation using the fraudulent trace paperwork.
The count with which Vaisman is charged carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
Coviello previously pleaded guilty, before U.S. District Judge Mary L. Cooper, to an information charging him with conspiracy to commit wire fraud in relation to the scheme. His sentencing is scheduled for Sept.12, 2013.
U.S. Attorney Fishman credited special agents of the U.S. Department of Transportation, Office of the Inspector General, under the direction of Special Agent in Charge Douglas Shoemaker; IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen; and criminal investigators with the U.S. Attorney’s Office with the ongoing investigation.
The government is represented by Assistant U.S. Attorney Scott B. McBride of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.The charge and allegations against Gideon are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: Edward J. Dauber Esq., NewarkVaisman, Gideon Complaint
Orthofix Territory Manager Convicted for Committing Health Care Fraud and Paying KickbacksRead the Press Release
BOSTON – A former Orthofix territory manager was convicted today for health care fraud and paying kickbacks.
Hunter A. Rigsby, 33, of Knoxville, Tenn., pleaded guilty before U.S. District Judge F. Dennis Saylor IV to health care fraud and paying kickbacks.
Rigsby was a territory manager for Orthofix, Inc., a company that sold bone growth stimulator medical devices. Bone growth stimulators are used by patients who have broken bones or spinal fusions that are not healing properly. From 2005 through 2011, Rigsby sold Orthofix bone growth stimulators in Tennessee. Medicare only pays for “long bone” stimulators when at least 90 days have elapsed without clinically significant healing, and it only covers certain types of injuries. Rigsby was well-aware of these guidelines, having received training on these guidelines at Orthofix. On numerous occasions, doctors in Rigsby’s territory ordered bone growth stimulators that did not satisfy Medicare’s guidelines. For instance, some doctors prescribed the device before 90 days had not yet elapsed without any healing, and other doctors prescribed the device for patients who had injuries that were not covered under Medicare’s guidelines. When this occurred, Rigsby often forged the patient’s medical records to make it appear as though the claim was payable under Medicare’s guidelines, when in fact Medicare should not have paid the claim. For instance, Rigsby falsified doctors’ chart notes to make it appear as though Medicare’s 90-day rule was satisfied. Rigsby also deleted portions of physicians’ chart note that described patients’ injuries which were not covered by Medicare and changed the note to make it appear as though the patients had injuries that were covered. On some occasions, Rigsby submitted orders where the physician had not ordered a bone growth stimulator at all. Rigsby also forged physicians’ signatures on prescriptions and Medicare Certificates of Medical Necessity.
In July 2009, Orthofix fired Rigsby after discovering his fraud scheme. Immediately thereafter, Rigsby and Orthofix sales personnel devised a scheme to allow Rigsby to continue to submit bone growth stimulator orders to Orthofix through a new front company that Rigsby created. Rigsby took numerous steps to conceal his affiliation with the front company so that Orthofix compliance personnel would not detect that he was still doing business with the company. Rigsby continued to submit orders for stimulators, sending the orders in through separate individuals. Even though Rigsby had been fired for falsifying medical records, he continued to manipulate patient medical records and forge physicians’ signatures until Orthofix finally severed its relationship with him in 2011. Through his scheme, Rigsby caused Medicare and other federal insurance programs to pay more than $400,000 for bone growth stimulators that should not have been paid.
Rigsby also paid kickbacks to health care professionals to induce them to order Orthofix stimulators. For instance, Rigsby paid the person who was responsible for ordering stimulators at one of the largest medical practices in Tennessee. Rigsby approached this person and asked if he could pay this person in return for steering stimulator orders to Orthofix. The person agreed, and Rigsby left an envelope with $200 in cash at the person’s house. In another instance, Rigsby entered into an arrangement to pay a nurse in Morristown, Tenn., each time that the surgeon who employed her ordered an Orthofix stimulator. Rigsby left an envelope of cash, between $200-$300, in the back of the nurse’s truck after the surgeon began to order stimulators.
In addition to the Rigsby sentence, the Orthofix investigation has to date resulted in a number of felony charges against employees and contractors of Orthofix, including the following:
- In December 2012, Orthofix was convicted of obstruction of a federal audit and ordered to pay $42 million in criminal fines and civil payments, and was sentenced to probation for five years;
- In January 2013, Tom Guerrieri, the former vice president of sales for Orthofix, was sentenced to eight months in prison and ordered to pay $50,000 in fines and forfeiture for paying kickbacks;
- In July 2012, Michael Cobb, a physician’s assistant, was sentenced to six months in prison and six months home confinement, and ordered to forfeit $10,000 and pay a $3,000 fine for accepting kickbacks from Orthofix;
- In January 2013, Derrick Field, a former Orthofix territory manager, was sentenced to five months of home confinement as part of a two year probation sentence, forfeiture of $40,000 and a $4,000 fine for committing health care fraud;
- In January 2013, Mitchell Salzman, a former regional manager for Orthofix, was sentenced to one year of probation, with the first three months to be served in home confinement, and ordered to pay a $2,000 fine for committing perjury;
- In January 2013, Michael McKay was sentenced to one year of probation, with the first three months to be served in home confinement, forfeiture of $10,000 and a fine of $3,000 for committing health care fraud; and
- In February 2013, Brian Racey, a former Orthofix territory manager, was sentenced to one year of probation and ordered to pay a fine for committing health care fraud;
Judge Saylor scheduled sentencing for August 9, 2013. The statutory maximum penalty on the charge of health care fraud is 10 years in prison, followed by three years of supervised release, a fine of $250,000 or twice the loss or gain resulting from the crime, whichever is greater, forfeiture, restitution, and a mandatory special assessment. The statutory maximum penalty on the charge of paying kickbacks is five years in prison, followed by three years of supervised release, a fine of $250,000 or twice the loss or gain resulting from the crime, whichever is greater, forfeiture, restitution, and a mandatory special assessment.
United States Attorney Carmen M. Ortiz and Susan J. Waddell, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General, Office of Investigations, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney David S. Schumacher of Ortiz’s Health Care Fraud Unit.
Ohio Man Charged with Drug Law ViolationRead the Press Release
PITTSBURGH - A resident of Warren, Ohio, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotic laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Matthew Hosey, 61, of Warren, Ohio.
According to the indictment, on or about April 24, 2013, Hosey possessed with intent to distribute a quantity of crack cocaine and a quantity of heroin.
The law provides for a maximum total sentence of 30 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Troy Rivetti is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Southwest Regional Police Department, Pennsylvania State Police, Drug Enforcement Administration, and the Pennsylvania Attorney General's Office conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Niagara Falls Man Sentenced on Gun ChargeRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Walter McTyere, 30, of Niagara Falls, N.Y., who was convicted of possessing a firearm with an obliterated serial number, was sentenced by U.S. District Judge Richard J. Arcara to one year in prison.
According to Assistant U.S. Attorney John M. Alsup, who is handling the case, McTyere was found in possession of a pistol with an obliterated serial number during an investigation into illicit firearm transactions in Niagara Falls in January and February 2012.
The sentencing is the culmination of an investigation on the part of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Frank Christiano and the Niagara County Drug Task Force, under the direction of Sheriff James Votour.New Haven Man Sentenced to 14 Years in Federal Prison for Distributing Heroin and Crack CocaineRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, announced that RALSTON WILLIAMS, also known as “Chris,” 43, of New Haven, was sentenced today by United States District Judge Vanessa L. Bryant in Hartford to 168 months of imprisonment, followed by three years of supervised release, for distributing heroin and crack cocaine. WILLIAMS also was ordered to pay a $100,000 fine.
On May 29, 2012, a jury found WILLIAMS guilty of one count of conspiracy to possess with intent to distribute heroin, one count of possession with intent to distribute heroin, and one count of possession with intent to distribute cocaine base (“crack cocaine”).
According to the evidence at trial, in August 2011, the DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force initiated an investigation into a series of suspected heroin overdose cases in the greater New Haven area, including one that resulted in the death of a woman in Milford on August 16, 2011. The investigation revealed that WILLIAMS, his co-defendant, Jason Brodsky, and others rented hotel rooms in the New Haven area and sold prepackaged heroin to a variety of customers. The trial evidence included surveillance videos, hotel records, telephone records, recorded calls, seized narcotics, as well as testimony of law enforcement officers and cooperating witnesses.
WILLIAMS was arrested on September 7, 2011, at which time he was found in possession of approximately 140 bags of heroin and 40 bags of crack cocaine packaged for sale.
Judge Bryant found that WILLIAMS and Brodsky sold the heroin that caused the overdose death of the Milford woman.
Brodsky has pleaded guilty and awaits sentencing.
This matter was investigated by the DEA’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force and the Milford Police Department, with the assistance of the Connecticut State Police and the Bridgeport and Stamford Police Departments.
This case is being prosecuted by Assistant United States Attorneys Sarah Karwan and Peter Markle.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]New Haven Man Admits Role in Killingworth Bank RobberyRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that MARCUS DWYER, 40, of New Haven, pleaded guilty yesterday before United States Magistrate Judge Holly B. Fitzsimmons in Bridgeport to one count of bank robbery for his role in the August 2012 robbery of TD Bank in Killingworth.
According to court documents and statements made in court, in the afternoon of August 6, 2012, Jennifer Jacques drove DWYER and Dario Pabey to the TD Bank on Route 81 in Killingworth. DWYER and Pabey then entered the bank wearing masks and demanded that everyone lie on the floor. DWYER pointed a gun at bank employees and customers and then jumped over the teller door and ordered the employees to open the vault. He accompanied the employees to the vault while Pabey controlled the lobby area. Pabey used zip ties to tie the hands of one bank employee and demanded that the customers give him their wallets, mobile phones and car keys. As Pabey was starting to restrain a second person with zip ties, DWYER ran past him with a bag of money that he had taken from the vault. Pabey followed and grabbed a patron who had surrendered his car keys to him and forced him out of the bank. DWYER and Pabey fled in the customer’s vehicle, which was abandoned a short distance from the bank at a pre-planned location where Jacques was waiting. Jacques then drove DWYER and Pabey away from the bank while they changed out of the clothes they had worn during the robbery.
The investigation has revealed that $43,573 was stolen from the bank and its patrons during the robbery.
DWYER is scheduled to be sentenced by United States District Judge Janet C. Hall on August 20, 2013, in New Haven at which time DWYER faces a maximum term of imprisonment of 20 years and a fine of up to $250,000.
DWYER has been detained since his arrest on September 19, 2012.
Pabey, of Waterbury, pleaded guilty on February 25, 2013. He is scheduled to be sentenced on May 24, 2013. Jacques also has pleaded guilty and awaits sentencing.
This matter has been investigated by the Federal Bureau of Investigation and the Connecticut State Police. The case is being prosecuted by Assistant United States Attorneys Ray Miller and Sarala Nagala.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Nesspor Pleads Guilty to Oxycontin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 54-year-old West Lawn, Pennsylvania resident pleaded guilty today in Scranton before Senior U.S. District Court Judge Edwin M. Kosik to participating in an Oxycontin trafficking conspiracy that operated in Schuylkill and Berks County in 2011.
According to United States Attorney Peter J. Smith, Stephen Nesspor admitted to conspiring with at least two others to unlawfully distribute 80mg Oxycontin pills.
Nesspor was indicted by a federal grand jury in September 2011, as a result of an investigation by the Drug Enforcement Administration and the Pennsylvania State Police.
Judge Kosik ordered a pre-sentence investigation report to be completed. Nesspor faces up to 20 years in prison and a $1 million fine. No date was set for sentencing.
Two of Nesspor’s co-defendants previously entered guilty pleas in the case. Richard Law was sentenced to 15 months in prison. Michael Beaver pleaded guilty and is awaiting sentencing.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Nebraska Man Indicted for Aggravated Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a North Platte, Nebraska man has been indicted by a federal grand jury for allegedly engaging in a sexual act with a three year old on July 25, 2011 at Allen, South Dakota.
Frank Red Bear, age 44, was indicted by a federal grand jury on April 16, 2013 for Aggravated Sexual Abuse of a Minor. Red Bear appeared before U.S. Magistrate Judge Veronica L. Duffy on May 8, 2013 and pled not guilty to the indictment.
The minimum penalty upon conviction is 30 years of imprisonment and a $250,000 fine. The charge is merely an accusation and Red Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety.
Red Bear was remanded to the custody of the U.S. Marshal. A trial date has not been set.
Michigan Physician Pleads Guilty for Role in Medicare Fraud SchemeRead the Press Release
A Detroit-area physician pleaded guilty today to making fraudulent referrals for home health care as part of a $1.6 million home health care fraud scheme, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade, Special Agent in Charge Robert D. Foley III of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Chicago Regional Office.
Dr. Sonjai Poonpanij, 82, of Rochester, Mich., pleaded guilty before Senior U.S. District Judge Arthur J. Tarnow in the Eastern District of Michigan to one count of conspiracy to commit health care fraud.
According to court documents, Dr. Poonpanij admitted that beginning in approximately July 2010, he conspired with others to commit health care fraud by referring Medicare beneficiaries for home health care that was not medically necessary and causing false and fraudulent claims to be submitted to Medicare.
Dr. Poonpanij admitted that he saw patients at a psychotherapy center in Flint, Mich., known as New Century Adult Day Program Services LLC, and referred Medicare beneficiaries at New Century to home health care companies – including a home health care company known as Angle’s Touch Home Health Care LLC – even though he knew that those beneficiaries did not qualify for home health care. According to court documents, Dr. Poonpanij wrote prescriptions for narcotics requested by the beneficiaries in exchange for their enrollment with Angle’s Touch for home health care that they did not need or receive. In addition to referring patients that he saw at New Century, Dr. Poonpanij also referred beneficiaries whom he had never seen or treated to Angle’s Touch and other home health agencies. Dr. Poonpanij signed plans of care for these beneficiaries that were used to bill Medicare for services that were either never actually performed or were not performed in the beneficiaries’ homes as required.Court documents allege that between September 2008 and September 2012, Dr. Poonpanij caused Angle’s Touch and two other home health agencies to submit claims to Medicare for services that were not medically necessary and/or not provided, which caused Medicare to pay these companies approximately $1,318,954.
At sentencing, scheduled for Aug. 14, 2013, Dr. Poonpanij faces a maximum penalty of 10 years in prison and a $250,000 fine.
This case is being prosecuted by Trial Attorney Niall M. O’Donnell of the Criminal Division’s Fraud Section. It was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .
Michigan Man Sentenced for Tax FraudRead the Press Release
Steven Kern, of Marine City, Mich., was sentenced to serve one year and one day in prison by U.S. District Court Judge Arthur J. Tarnow in the Eastern District of Michigan, the Justice Department and Internal Revenue Service (IRS) announced. On January 28, 2013, Kern pleaded guilty to an indictment charging him with eight counts of filing false corporate tax returns and eight counts of failing to file his individual income tax returns.
According to court documents, Kern operated the Kern Chiropractic Center in Marine City. From 2003 through 2010, Kern filed false corporate returns for Kern Chiropractic that did not include as gross receipts cash and check payments that Kern diverted from the business for his own personal use. During the same years, Kern failed to file individual tax returns, despite earning more $1.2 million in gross income during that time period. F iled court documents and court proceedings further established that Kern has not filed an individual federal income tax return since 2002 and told IRS – Criminal Investigation special agents he believed signing and filing a completed individual federal tax return was a violation of his constitutional rights.
Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally commended the efforts of special agents of IRS – Criminal Investigation in investigating the case and Tax Division Trial Attorneys Mark McDonald and Jeff Bender for prosecuting the case.
Mexican Citizen Found in Altoona Indicted on Immigration ViolationRead the Press Release
JOHNSTOWN, Pa. - A citizen of Mexico has been indicted by a federal grand jury in Johnstown on a charge of re-entry of an illegal alien, United States Attorney David J. Hickton announced today.
The one-count indictment named Juan Raymundo Martinez-Alba, 28, of Altoona, Pa., as the sole defendant.
According to the indictment, on April 10, 2013, Martinez-Alba, an alien who had been deported from the United States on Dec. 4, 2008, was found in Altoona, Pa. He had unlawfully re-entered this country without receiving permission from the Secretary of the Department of Homeland Security to do so.
The law provides for a maximum total sentence of two years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Department of Homeland Security/Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Methamphetamine Dealer, Kerry Wayne Walker, Pleads Guilty in Federal CourtRead the Press Release
KERRY WAYNE WALKER, age 50, a resident of New Orleans, Louisiana, pleaded guilty in federal court today to being part of a conspiracy to traffic in methamphetamine and heroin, announced U. S. Attorney Dana J. Boente.
WALKER pleaded guilty before U. S. District Judge Jay C. Zainey to one count of violating the Federal Controlled Substances Act in which he and others conspired to distribute 500 grams or more of methamphetamine and 100 grams or more of heroin. The count carries a minimum of 10 years imprisonment up to a maximum of life imprisonment and a minimum of five years of supervised release.
According to court documents, the Drug Enforcement Administration along with state and local law enforcement had investigated the trafficking of methamphetamine in and around the French Quarter area. Agents learned that WALKER was a distributor in the area. Ultimately, agents arrested WALKER in the fall of 2013. WALKER’s co-defendants are currently set for jury trial on June 24, 2013.
This case was investigated by Special Agents of the Drug Enforcement Administration and the New Orleans Police Department. It was prosecuted by Assistant United States Attorney Kevin G. Boitmann.
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Melbourne Man Sentenced to 20 Years on Federal Child Pornography ChargesRead the Press Release
Orlando, Florida - U.S. District Judge Roy B. Dalton, Jr. today sentenced Jose Manuel Rivera, Jr. (35, Melbourne) to the statutory maximum of 20 years in federal prison for receipt of child pornography. The court also ordered Rivera to serve a 25-year term of supervised release following his release from prison, and to forfeit the computer equipment he used to commit the offense. Rivera pleaded guilty on February 22, 2013.
According to court documents, Rivera downloaded and collected over a dozen movies depicting the sexual exploitation and abuse of prepubescent children, some as young as three years old. Rivera also admitted to molesting a toddler on two separate occasions when the child had previously lived in his family's home. “Homeland Security Investigations special agents identified Rivera as a child predator during Operation Sunflower, a nationwide operation focused on identifying sexual predators and rescuing victims,” said Susan McCormick, special agent in charge of Homeland Security Investigations Tampa. “As a result of our agents’ investigative work, Rivera can no longer prey on innocent children. He will spend the next two decades behind bars.”
This case was investigated by U.S. Immigration and Customs Enforcement's Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Joseph M. Schuster.Homeland Security Investigations launched Operation Sunflower in November 2012 to commemorate the one-year anniversary in which the identification of a sunflower-shaped highway road sign led to the rescue of an 11-year-old girl in Kansas. The operation identified 123 victims of child exploitation. Of that number, 44 were directly rescued from their abusers and 79 were identified as either being exploited by others outside their home or are now adults who were victimized as children.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney's Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. For more information about internet safety education, please visit www.projectsafechildhood.gov and click on the tab "other resources."
Medicare Fraud Strike Force Charges 89 Individuals for Approximately $223 Million in False BillingRead the Press Release
Attorney General Eric Holder and Department of Health and Human Services (HHS) Secretary Kathleen Sebelius announced today that a nationwide takedown by Medicare Fraud Strike Force operations in eight cities has resulted in charges against 89 individuals, including doctors, nurses and other licensed medical professionals, for their alleged participation in Medicare fraud schemes involving approximately $223 million in false billings.
Attorney General Holder and Secretary Sebelius were joined in the announcement by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, FBI Assistant Director Ron Hosko, Inspector General Daniel R. Levinson of the HHS Office of Inspector General (HHS-OIG) and Deputy Administrator and Director of Centers for Medicare & Medicaid Services (CMS) Center for Program Integrity Peter Budetti.
This coordinated takedown was the sixth national Medicare fraud takedown in Strike Force history. In total, almost 600 individuals have been charged in connection with schemes involving almost $2 billion in fraudulent billings in these national takedown operations alone. The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
Since their inception in March 2007, Strike Force operations in nine locations have charged more than 1,500 defendants who collectively have falsely billed the Medicare program for more than $5 billion. In addition, CMS, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The joint Department of Justice and HHS Medicare Fraud Strike Force is a multi-agency team of federal, state and local investigators designed to combat Medicare fraud through the use of Medicare data analysis techniques and an increased focus on community policing. Approximately 400 law enforcement agents from the FBI, HHS-OIG, multiple Medicaid Fraud Control Units and other state and local law enforcement agencies participated in the takedown.
“Today’s announcement marks the latest step forward in our comprehensive efforts to combat fraud and abuse in our health-care systems,” said Attorney General Holder. “These significant actions build on the remarkable progress that the HEAT has enabled us to make – alongside key federal, state, and local partners – in identifying and shutting down fraud schemes. They are helping to deter would-be criminals from engaging in fraudulent activities in the first place. And they underscore our ongoing commitment to protecting the American people from all forms of health-care fraud, safeguarding taxpayer resources and ensuring the integrity of essential health-care programs.”
“The Affordable Care Act has given us additional tools to preserve Medicare and protect the tens of millions of Americans who rely on it each day,” said Secretary Sebelius. “By expanding our authority to suspend Medicare payments and reimbursements when fraud is suspected, the law allows us to better preserve the system and save taxpayer dollars. Today we’re sending a strong, clear message to anyone seeking to defraud Medicare: You will get caught and you will pay the price. We will protect a sacred trust and an earned guarantee.”
The defendants charged are accused of various health care fraud-related crimes, including conspiracy to commit health care fraud, violations of the anti-kickback statutes and money laundering. The charges are based on a variety of alleged fraud schemes involving various medical treatments and services, primarily home health care, but also mental health services, psychotherapy, physical and occupational therapy, durable medical equipment (DME) and ambulance services.
According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare for treatments that were medically unnecessary and often never provided. In many cases, court documents allege that patient recruiters, Medicare beneficiaries and other co-conspirators were paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent billing to Medicare for services that were medically unnecessary or never performed. Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of conspiring to submit a total of approximately $223 million in fraudulent billing.
“We have made it part of our core mission at the Department of Justice to hold accountable those who steal from the Medicare program to line their own pockets,” said Acting Assistant Attorney General Raman. “There are Medicare fraudsters in prisons across the country – some who will be there for decades – who can attest to our determination, and our effectiveness.”
“We all feel the effects of health care fraud,” said FBI Assistant Director Hosko. “It leads to higher health care costs and makes it harder for seniors and those who are ill to get the care they need. The FBI and our law enforcement partners are committed to preventing and prosecuting health care fraud at all levels. But we need the public’s help. Take the time to be aware of fraud and call law enforcement if you see anything suspicious included in the billings to your insurance, Medicare, or Medicaid or have any unusual encounters with health care providers. We can work together to ensure your hard-earned dollars are used to care for the sick and not to line the pockets of criminals.”
“Taxpayers expect us to work harder and smarter, and that is exactly what happened across the nation today,” said HHS Inspector General Levinson. “In addition to the work of my agents and other federal, state, and local law enforcement officials, investigators from nine other IG offices joined us today. Working together we can break down silos, pool expertise, reduce costs, and the successful result speaks for itself.”
“Today’s takedown is the result of dedicated commitment to working with our law enforcement partners to root out fraud in the Medicare program,” said CMS Program Integrity Deputy Administrator Budetti. “This collaboration has been strengthened by the Affordable Care Act, which provided CMS with the tools it needs to stop the flow of money while working to rid our programs of fraud, waste and abuse.”
In Miami, a total of 25 defendants, including two nurses, a paramedic and a radiographer, were charged today and yesterday for their participation in various fraud schemes involving a total of $44 million in false billings for home health care, mental health services, occupational and physical therapy, DME and HIV infusion. In one case, three defendants were charged for participating in a $20 million home health fraud scheme involving a home health agency, Trust Care Health Services. Court documents allege that the defendants bribed Medicare beneficiaries for their Medicare information, which was used to bill for home health services that were not rendered or that were not medically necessary. According to court documents, the lead defendant spent much of the money from the scheme, and purchased multiple luxury vehicles, including two Lamborghinis, a Ferrari and a Bentley.
Eleven individuals were charged by the Baton Rouge Strike Force. Five individuals were charged today, including two doctors, in New Orleans by the Baton Rouge Strike force for participating in a different $51 million home health fraud scheme. According to court documents, the defendants recruited beneficiaries, offering cash and other incentives in exchange for their Medicare information, which was used to bill medically unnecessary home health services. The Baton Rouge Strike Force also announced a superseding indictment and an information charging six individuals, including another doctor, with over $30 million in fraud in connection with a community mental health center called Shifa Texas. These charges come on top of charges brought against the owners and operators of Shifa Baton Rouge, a related community mental health center which is at the center of an alleged $225 million scheme charged in an earlier indictment.
In Houston, two individuals, including a nurse and a social worker, were charged today with fraud schemes involving at total of $8.1 million in false billings for home health care. The defendants, who are brother and sister, allegedly used patient recruiters to obtain Medicare beneficiary information that they then used to bill for services that were not medically necessary and not provided.
Thirteen defendants were charged in Los Angeles for their roles in schemes to defraud Medicare of approximately $23 million. In one case, three individuals allegedly billed Medicare for more than $8.7 million in fraudulent billing for DME. According to the indictment, the defendants allegedly paid illicit kickbacks to patient recruiters to bribe beneficiaries to participate in the scheme. Once the individuals provided their Medicare information to recruiters, doctors and medical clinics conspiring with the defendants allegedly wrote prescriptions for medically unnecessary power wheelchairs, which they sold to the defendants for illegal kickbacks.
In Detroit, 18 defendants, including two doctors, a physician’s assistant and two therapists, were charged for their roles in fraud schemes involving approximately $49 million in false claims for medically unnecessary services, including home health, psychotherapy and infusion therapy. In one case, three individuals were charged in a $12 million scheme where they allegedly held themselves out to be licensed physicians – which they were not – and signed prescriptions for drugs and documents about purported psychotherapy they provided.
In Tampa, nine individuals were charged in a variety of schemes, ranging from pharmacy fraud health care-related money laundering. In one case, four individuals were charged for their alleged roles in establishing and operating four supposed healthcare clinics in Tampa, Fl. – Palmetto General Health Care Inc., United Healthcare Center Inc., New Imaging Center Inc. and Lord Physical Rehabilitation Center Inc. – which they allegedly used to steal more than $2.5 million from Medicare for surgical procedures that were never performed. The defendants allegedly billed Medicare for surgical procedures used to treat patients with high blood pressure by collapsing veins in the legs, but they did not actually perform the procedures.
In Chicago, seven individuals were charged, including two doctors, with a variety of health care fraud schemes.
In Brooklyn, N.Y., four individuals, including two doctors, were charged in fraud schemes involving $9.1 million in false claims. In one case, three additional individuals were allegedly involved in what is now alleged to be a $15 million scheme where massages by unlicensed therapists were billed to Medicare as physical therapy. Six defendants were previously charged in the scheme.
The cases announced today are being prosecuted and investigated by Medicare Fraud Strike Force teams comprised of attorneys from the Fraud Section of the Justice Department’s Criminal Division and from the U.S. Attorney’s Offices for the Southern District of Florida, the Eastern District of Michigan, the Eastern District of New York, the Southern District of Texas, the Central District of California, the Middle District of Louisiana; the Northern District of Illinois, and the Middle District of Florida; and agents from the FBI, HHS-OIG and state Medicaid Fraud Control Units.An indictment is merely a charge and defendants are presumed innocent until proven guilty.
To learn more about HEAT, go to: www.stopmedicarefraud.gov.
McKeesport Man Charged with Possessing HeroinRead the Press Release
PITTSBURGH - A resident of McKeesport, Pa., has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Sandy McNeal, 30, as the sole defendant.
According to the indictment, on or about Dec. 21, 2012, McNeal possessed with the intent to distribute a quantity of a mixture and substance containing a detectable amount of heroin, a Schedule I controlled substance.
The law provides for a maximum total sentence of not more than 30 years in prison, a fine not to exceed $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Katherine A. King is prosecuting this case on behalf of the government.
The Drug Enforcement Administration conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Man Indicted for Making Bomb Threats at Minneapolis-St. Paul International Airport and MOARead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 22-year-old man, formerly of Maine, was indicted for making bomb threats at the Minneapolis-St. Paul International Airport and the Mall of America (“MOA”). Dana William Ashey was specifically charged with two counts of false information and hoaxes.
The indictment alleges that on April 12, 2013, Ashey threatened that bombs had been planted at both the airport and the MOA. According to a law enforcement affidavit filed in the case, the airport’s police dispatch received a bomb threat at 2:37 a.m., on April 12, 2013, with a warning that a bomb could go off by 3:00 a.m. At 2:42 a.m. that same day, another bomb threat was allegedly phoned in to security dispatch for the MOA. The caller in that instance purportedly stated that the bomb had been placed in a restroom. A search of the mall yielded no bomb. At 2:17 p.m., the mall’s switchboard operator allegedly received yet another bomb threat. Authorities traced the call and found the man still inside the MOA. The man, later identified as Ashey, reportedly possessed the cell phone that was used to deliver the bomb threats.If convicted, Ashey faces a potential maximum penalty of five years in federal prison on each count. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the Federal Bureau of Investigation’s Joint Terrorism Task Force, the Minneapolis-St. Paul International Airport Police Department, the Bloomington Police Department, and the MOA Security. It is being prosecuted by Assistant United States Attorney Andrew R. Winter.
An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.Magnolia Woman Pleads Guilty to Lying to the Secret ServiceRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today before United States Magistrate Judge James E. Gates, KITRINA DIANE RHODES, 43, of Magnolia, North Carolina pled guilty to Making Material False Statements, in violation of Title 18, United States Code, Section 1001.
In October of 2012 the United States Secret Service (USSS) was investigating RHODES’s brother in connection with various allegations of credit card fraud and identity theft. On October 11, 2012 a special agent with the USSS went to RHODES’s residence to locate RHODES’s brother’s laptop computer and other evidence pertaining to the credit card fraud and identity theft investigation. The special agent asked RHODES to show the USSS where her brother’s belongings were located inside the residence. RHODES took the USSS to a room used for storage and pointed to a laundry basket containing minimal clothing.
The investigation revealed that, in fact, RHODES was aware that her brother stayed in a different room in the home which contained various items of clothing and other possessions purchased by RHODES’s brother. The possessions included a 65-inch flat screen television purchased by RHODES’s brother with a fraudulent credit card. When questioned, RHODES falsely claimed that she had purchased the television. RHODES later admitted to lying to the USSS agent about these and other matters.
At the sentencing in this case, which is presently scheduled for the August 13, 2013 term of court in Greenville, RHODES faces up to five years of imprisonment, up to $250,000 in fines, and as much as three years of supervised release.
Investigation of this case was conducted by the United States Secret Service with the assistance of the Duplin County Sheriff’s Office. Assistant United States Attorney William M. Gilmore is prosecuting the case.
Lusby Man Sentenced to 6 Years in Prison for Possession and Distribution of Child PornographyRead the Press Release
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Shawn Fred Crawford, age 48, of Lusby, Maryland, today to six years in prison followed by 10 years of supervised release for possession and distribution of child pornography. Judge Titus ordered that upon his release from prison, Crawford will be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to his plea agreement, on July 25, 2012, Crawford distributed six images and 16 videos depicting children engaged in sexually explicit conduct. Following its investigation, the FBI executed a search warrant at Crawford’s home on September 18, 2012 and seized computers and other digital media containing approximately 4,700 images and 1,100 videos of children engaged in sexually explicit conduct, including children under the age of 12.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), with members from 10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing and abused children.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney Kristi N. O’Malley, who prosecuted the case.
Leesville Financial Officer Sentenced to Five Years in Prison for Failure to Pay Company Payroll TaxesRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that Larry Wayne Bruce, 61, of Leesville, La., was sentenced on Monday by U.S. District Judge Richard T. Haik to serve five years in prison, followed by three years of supervised release for failing to pay corporate payroll taxes collected from Express Marketing Inc. (EMI) employees and for failure to pay his own personal taxes. Judge Haik also ordered Bruce to pay restitution in the amount of $190,783.96 to the owners of EMI and restitution in the amount of $294,070.98 to the IRS.
According to evidence presented during the guilty plea and sentencing, Bruce admitted to being responsible for not paying payroll taxes owed to the Internal Revenue Service while working as the financial officer for EMI in Leesville from 2003 to 2007. Bruce admitted the owners relied on him to pay the payroll taxes withheld from EMI employee paychecks and also admitted to taking more than $190,000 in excess of his salary from EMI during the time he failed to pay the taxes. By Bruce not paying the payroll taxes collected from EMI’s employees, EMI realized a profit of approximately $1 million per year. Bruce embezzled part of this money, but also manipulated company documents and reports to make EMI seem more profitable than it really was by withholding these tax liabilities from the owners and banks.Because of Bruce’s conduct, the loss to the IRS exceeds $3 million. The loss represents payroll taxes taken from EMI employee checks for several years but never paid to the IRS or reported to Social Security or other agencies. EMI collected the taxes from employees and kept the money under Bruce’s management.
Bruce also pleaded guilty to another count of the pending indictment, where he admitted to not paying his personal taxes from 2005 until he left the company in 2007.“The owners and employees of EMI relied on the defendant to fulfill his responsibility as financial officer for the company,” Finley said. “When Bruce chose to ignore his duty to pay the payroll taxes, he caused significant loss of tax revenue to the United States government and loss of future Social Security or Medicare benefits for the employees, all while embezzling extra money for himself. Yesterday, the defendant was held accountable for his actions, and in the end, the sentence represents appropriate justice. Further motivated by his greed, Bruce also willfully violated tax laws when he failed to file his personal income taxes for several years.”
“Our office is committed to vigorously prosecuting those who intentionally violate the tax laws. This should serve as a reminder to anyone who refuses to play by the rules that they will be prosecuted to the fullest extent of the law; Mr. Bruce is now a convicted felon with a long prison term to serve.”
The IRS conducted the investigation, and Assistant U.S. Attorney Myers P. Namie prosecuted the case.
Leader in Philadelphia Ambulance Scam Sentenced to 92 Months in PrisonRead the Press Release
PHILADELPHIA – William Hlushmanuk, a/k/a “Bill Le,” 35, of Philadelphia, was sentenced today to 92 months in prison for his participation in a health care fraud conspiracy involving ambulance services that were not medically necessary. Hlushmanuk pleaded guilty on February 5, 2013 to health care fraud and conspiring to commit health care fraud. Hlushmanuk admitted that from May 2006 through April 2011, he and his co-conspirators defrauded Medicare and Medicaid by billing for the unnecessary ambulance services. Hlushmanuk recruited and transported patients who were capable of walking, knowing that Medicare does not reimburse for patients who are ambulatory. Hlushmanuk also falsely registered the business in another person’s name because the Pennsylvania Department of Health had previously barred him from owning an ambulance company. As part of his plea agreement, Hlushmanuk admitted to acting as a leader of the conspiracy. In total, the conspiracy defrauded Medicare and Medicaid of approximately $5.4 million.
In addition to the prison term, U.S. District Senior Judge John R. Padova ordered Hlushmanuk to pay restitution in the amount of $5.4 million and ordered three years of supervised release.
The case was investigated by the FBI and the Department of Health and Human Services Office of the Inspector General. Invaluable assistance was provided by the Pennsylvania Department of Health. The case was prosecuted by Assistant U.S. Attorney Andrea Foulkes and Trial Attorney Adam L. Small of the Department of Justice’s Organized Crime and Gang Section.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Laredo Customs Broker Pleads GuiltyRead the Press Release
LAREDO, Texas– U.S. Customs Broker Alejandro Santos, 32, has entered a guilty plea in relation to the smuggling of goods into the country, United States Attorney Kenneth Magidson announced today. Santos pleaded guilty to entry of goods by false classification, smuggling goods into the United States and making a false statement to a Homeland Security Investigations (HSI) agent late yesterday afternoon before U.S. Magistrate Judge J. Scott Hacker.
Santos is licensed by Customs and Border Protection (CBP) to file entry documents for commercial shipments on behalf of importers. His responsibilities included generating entry packages, describing, classifying and valuating shipments for importation into the United States and submitting appropriate payments to CBP on behalf of his clients for any duties, taxes and fees owed, if any.
Santos used a scheme to defraud the government by falsifying the country of origin on goods imported into the United States. The falsification allowed him to benefit from the North American Free Trade Agreement preferential treatment program, resulting in zero duties and taxes owed. In truth, duties and taxes should have been paid to the U.S. Santos would then collect money from his clients to cover the correct amount of duties and taxes that should have been paid to CBP. Santos then failed to turn over the money to CBP, keeping the monies for himself.
Santos admitted to importing various goods into the United States made in India and Italy, while falsely claiming the goods were made in Mexico. He would then collect money from his clients (importers of record) and keep the money.
He faces up to a maximum sentence of twenty years in federal prison as well as a $250,000 fine.
The case was investigated by HSI Assistant U.S. Attorney Roel Canales is prosecuting the case.
Keith Daniel Skunkcap Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on May 10, 2013, before Chief U.S. District Judge Dana L. Christensen, KEITH DANIEL SKUNKCAP, a 21-year-old resident of Browning and an enrolled member of the Blackfeet Tribe, was sentenced to a term of:
Prison: 21 months
Special Assessment: $100
Supervised Release: 3 years
SKUNKCAP was sentenced in connection with his guilty plea to burglary.
In an Offer of Proof filed by Assistant U.S. Attorney Ryan G. Weldon, the government stated it would have proved at trial the following:
On August 17, 2011, at approximately 2:00 a.m., SKUNKCAP entered the residence of T.L.G. The residence is located Browning, which is within the exterior boundaries of the Blackfeet Indian Reservation.
T.L.G., the owner of the residence, told SKUNKCAP to leave, but he refused. T.L.G. pointed to the back door of the residence, again requesting SKUNKCAP to leave. SKUNKCAP eventually pushed T.L.G. After being pushed, T.L.G. fell to the ground. As a result of the assault, T.L.G.'s upper lip was split open. T.L.G. was transported to Kalispell due to the seriousness of the facial laceration. T.L.G. underwent reconstructive surgery on her lip and nose.
In an interview with the FBI, SKUNKCAP admitted that he pushed T.L.G. Although SKUNKCAP claimed that T.L.G. hit him about seven times in the face, he did not have any injuries.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that SKUNKCAP will likely serve all of the time imposed by the court. In the federal system, SKUNKCAP does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Jury Finds Florida Man Guilty of Role in Oxycodone Trafficking RingRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that a federal jury in New Haven has found WILNER CASTELIN, also known as “Castro,” 44, of Fort Lauderdale, Fla., guilty of narcotics and money laundering charges stemming from his role in an oxycodone trafficking ring. The trial before U.S. District Judge Janet C. Hall began on May 7 and the jury returned the verdict yesterday.
This matter stems from “Operation Blue Coast,” an investigation headed by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area Task Force into the large-scale trafficking of oxycodone pills from Florida to Connecticut. The investigation revealed that an individual regularly purchased oxycodone from suppliers in Florida, transported the oxycodone to Connecticut by commercial airline or automobile, and sold the pills for profit to various Connecticut-based narcotics dealers. He then transported the proceeds of his oxycodone sales from Connecticut to Florida, either by having a courier drive the money or by using commercial airline flights.
The evidence at trial revealed that the narcotics trafficker met David Gaudiosi and Bruce Yazdzik, two large-scale oxycodone distributors in Connecticut, in early 2010. After the meeting, Gaudiosi and Yazdzik visited the narcotics trafficker in Florida on multiple occasions to obtain prescriptions for oxycodone from unscrupulous pain clinics, commonly referred to as “pill mills.” The trafficker paid CASTELIN to chauffeur Gaudiosi and Yazdzik during their Florida visits. CASTELIN subsequently agreed to travel to the northeastern U.S. to drive large amounts of U.S. currency, which were proceeds of the narcotics trafficker’s oxycodone sales in Connecticut, to Florida. CASTELIN was paid approximately $1,000 to $1,250 for each trip.
The jury found CASTELIN guilty of one count of conspiracy to distribute and to possess with intent to distribute oxycodone, and one count of conspiracy to commit money laundering. Judge Hall has scheduled sentencing for August 20, 2013, at which time CASTELIN faces a maximum term of imprisonment of 20 years on each count.
CASTELIN was arrested on September 13, 2011, and has been released on bond since February 28, 2012.
Twenty individuals, including two law enforcement officers and three Transportation Security Agency officers, have been charged as a result of this investigation.Gaudiosi and Yazdzik each pleaded guilty to oxycodone trafficking charges. On November 14, 2012, Yazdzik was sentenced to 120 months of imprisonment. Gaudiosi awaits sentencing.
This matter has been investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area Task Force, which includes personnel from the Connecticut State Police and the Bridgeport, Milford, Norwalk, Stamford and Westport Police Departments; the Drug Enforcement Administration in Florida and the U.S. Department of Homeland Security Office of Inspector General. In addition, the U.S. Marshals Service and the Greenwich, Monroe, Danbury and Waterbury Police Departments have assisted the investigation.
This case is being prosecuted by Assistant United States Attorneys Rahul Kale and Brian Leaming.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Jicarilla Apache Man Pleads Guilty to Voluntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Kevin Cavazone, 30, a member and resident of the Jicarilla Apache Nation, pleaded guilty this afternoon to a felony information charging him with voluntary manslaughter. Under the terms of the plea agreement, Cavazone will be sentenced to 66 months in federal prison followed by a term of supervised release to be determined by the court.
According to court filings, Cavazone killed David Cachucha, also a member of the Jicarilla Apache Nation, on Nov. 22, 2011, by stabbing him repeatedly in the torso. The crime took place on the Jicarilla Apache Indian Reservation during a fight between Cavazone and the victim. During today’s proceedings, Cavazone admitted stabbing the victim in the torso on Nov. 22, 2011, during a fight that began after the two men and several others had been drinking alcohol.
Cavazone has been in federal custody since his arrest on Nov. 28, 2011, and remains detained pending his sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque and Farmington offices of the FBI and the Jicarilla Apache Tribal Police Department, and is being prosecuted by Assistant U.S. Attorney Mark T. Baker.
Jicarilla Apache Man Pleads Guilty to Federal Aggravated Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Gary Sidney Vicenti, 53, a member and resident of the Jicarilla Apache Nation, pleaded guilty this afternoon to an aggravated sexual abuse charge under a plea agreement with the U.S. Attorney’s Office. Under the terms of the plea agreement, Vicenti will be sentenced to 12 years in prison followed by a term of supervised release to be determined by the court. Vicenti also will be required to register as a sex offender.
Vicenti’s guilty plea was announced by U.S. Attorney Kenneth J. Gonzales, Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI, and Police Chief Kendall P. Vicenti of the Jicarilla Apache Tribal Police Department.
Vicenti was arrested in Nov. 2012, on a criminal complaint alleging that he sexually abused a child under the age of 12 in summer 2011 on the Jicarilla Apache Reservation. During today’s hearing, Vicenti entered a guilty plea to a felony information charging him with aggravated sexual abuse and admitted sexually abusing the victim by touching the victim’s genitals. Vicenti also admitted that this criminal offense occurred on June 1, 2011, in the Jicarilla Apache Reservation.
Vicenti was remanded into the custody of the U.S. Marshals Service after entering his guilty plea. He will remain detained pending his sentencing hearing, which has yet to be scheduled.
The case was investigated by the Farmington office of the FBI and the Jicarilla Apache Tribal Police Department. It is being prosecuted by Assistant U.S. Attorney Presiliano A. Torrez as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Hospital Employee and Accomplice Plead Guilty to Tax Refund Fraud Using Stolen Patient InformationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, Ronald Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), and Scott J. Israel, Sheriff, Broward County Sheriff’s Office, announce that defendants Shalamar Major, 32, and Tanisha Wright, 27, both of Deerfield Beach, pled guilty yesterday in connection with a tax refund scheme that used stolen social security and other personal identifying information to file on-line tax returns claiming fraudulent tax refunds from the IRS.
More specifically, Wright was convicted of three counts of identity theft, in violation of Title 18, United States Code, Section 1028(a)(7), three counts of theft of public money, in violation of Title 18, United States Code, Section 641, one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(3), one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A, one count of theft of mail, in violation of Title 18, United States Code, Section 1708, and one count of conspiracy to commit false claims, in violation of Title 18, United States Code, Section 286. Major was convicted of one count of unauthorized HIPAA disclosures, in violation of Title 42, United States Code, Section 1320d-6, and one count of conspiracy to commit false claims, in violation of Title 18, United States Code, Section 286.
Sentencing has been scheduled for July 22, 2013 at 8:45 a.m. before U.S. District Judge Robin S. Rosenbaum in Ft. Lauderdale. At sentencing, defendant Wright faces a maximum statutory sentence of up to ten years in prison on each of the theft of public money, access device fraud, and conspiracy to commit false claim counts, a maximum statutory sentence of up to fifteen years in prison on the identity theft counts, a maximum statutory sentence of up to five years in prison on the theft of mail counts, and a mandatory consecutive two years imprisonment on the aggravated identity theft count. Defendant Major faces a maximum statutory sentence of up to ten years in prison on each of the unauthorized HIPAA disclosure and conspiracy to commit false claims counts.
According to documents filed and statements made in court, from January through June 2012, Wright and Major possessed and used stolen personal identifying information of others to file federal income tax returns claiming tax refunds to which they were not entitled. Specifically, defendant Shalamar Major was employed as a scheduler at the Boca Raton Regional Hospital in Boca Raton, Florida. As a scheduler, she had access to personal identification information of Boca Raton Regional Hospital patients, including their names, dates of birth, social security numbers, and other sensitive personal information. In exchange for the promise of future payments, Shalamar Major unlawfully provided Tanisha Wright sensitive personal identifying information, including names, dates of birth, and social security numbers, of numerous Boca Raton Regional Hospital patients. Tanisha Wright, upon receipt of the sensitive personal identifying information of the Boca Raton Regional Hospital patients, used this information to electronically file fraudulent federal income tax returns without the knowledge or authorization of the victims and claimed refunds to which she was not entitled from the IRS.
Tanisha Wright thereafter instructed the IRS to direct-deposit the refunds onto pre-paid reloadable debit cards that were already in her possession and had been previously stolen out of the U.S. mail. Once the debit cards had been funded by the Department of the Treasury, Tanisha Wright would convert the funds on the debit cards to cash by making withdrawals at local automated teller machines or would make personal purchases at various local businesses. Once Tanisha Wright obtained cash from the fraudulently funded debit cards, she would split the proceeds with Shalamar Major. In total, at least 57 fraudulent tax returns were filed with the IRS, requesting $306,720 in federal tax refunds.
Mr. Ferrer commended the investigative efforts of IRS-CI, the U.S. Postal Inspection Service, and the Broward Sheriff’s Office. This case is being handled by Assistant U.S. Attorney Marc Anton.
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.
Gulf Cartel Plaza Boss Heads to Prison for LifeRead the Press Release
BROWNSVILLE, Texas - Juan Roberto Rincon-Rincon, one of the highest ranking members of the Gulf Cartel, has been ordered to federal prison for life following his convictions related to a large drug trafficking conspiracy, United States Attorney Kenneth Magidson announced today along with Vincent Iglio, acting special agent in charge of Homeland Security Investigations (HSI) and Javier Peña, special agent in charge of the Drug Enforcement Administration (DEA). A jury convicted Rincon following seven days of trial and less than two hours of deliberation on Friday, Sept. 28, 2012.
Today, U.S. District Judge Hilda G. Tagle, who presided over the trial, ordered Rincon to serve a life sentence in federal prison. At the hearing, the court found that Rincon-Rincon was accountable for the equivalent of 10,697,100 kilograms of marijuana as his offense conduct. His sentence was enhanced because Rincon-Rincon used dangerous weapons such as grenades, rocket launchers, homemade cannons and automatic weapons during the conspiracy. The court also enhanced his sentence because Rincon-Rincon was a leader/organizer of the criminal activity, used violence, used body armor, bribed law enforcement officials, imported methamphetamine and because his primary employment consisted of being a lieutenant and/or plaza boss for the Gulf Cartel. Rincon-Rincon was further ordered to pay a $1 million fine as to each of the two counts of conviction. In handing down the sentence, Judge Tagle noted that Rincon-Rincon had made the conscious choice to participate in the conspiracy and further commented to him that “you enjoyed the fruits of that lifestyle. Now, it is time for you to deal with the consequences.”
“HSI agents have made it a top priority to bring stability and security to this border region and today’s sentencing of Rincon-Rincon is a prime example of that,” said Iglio. “HSI will continue its efforts in partnership with our federal, state and local partners to combat cartel related crimes in an effort to achieve these significant results.”
Rincon, 42, from Matamoros, Mexico, was convicted of conspiracy to possess with the intent to distribute as well as conspiracy to import into the United States more than five kilograms of cocaine and 1000 kilograms of marijuana from January 2002 until his capture on Oct. 26, 2011.
“Juan Roberto Rincon-Rincon, one of the highest ranking members of the Gulf Cartel, posed a threat to the citizens of both the United States and Mexico,” said Peña. “This case highlights the work of law enforcement in the Rio Grande Valley in keeping our border communities safe and ensuring Mexican drug traffickers do not find refuge in the United States.”
Evidence at trial proved that more than 9,000 kilograms of marijuana was seized by Border Patrol during the months of September and October 2011 when Rincon-Rincon was proven to be the Plaza Boss of Rio Bravo, Tamaulipas, Mexico. During his time in that leadership role, the money derived from the Gulf Cartel was more than $20 million. As the plaza boss, which is the lead representative for the Gulf Cartel in a particular region or town, Rincon-Rincon, aka Primo or X-5, was in charge of maintaining control of the region to ensure safe passage of the Gulf Cartel’s narcotics and ensuring no narcotics passed through his area of responsibility without his approval or knowledge.
Testimony at trial indicated that control of the plaza was accomplished by bribing Mexican law enforcement, some elements of the Mexican military, the news media and elected public officials. Additionally, testimony indicated that control of the plaza was also accomplished by secretly and illegally wiretapping the phones at law enforcement offices, public offices and phones, hotels and news media outlets. License plate readers and cameras were also used in order to detect infiltration of rival cartels or the movements of the Mexican military, according to testimony. Rincon-Rincon also had at least 100 individuals at his disposal armed with semi-automatic rifles, body armor, grenades, .50 Caliber automatic rifles and some had rocket launchers.
Testimony at trial further revealed that beginning in approximately 2000, Rincon-Rincon began working his way up the ranks of the Gulf Cartel through his associations with other known Cartel members. Testimony indicated that in 2000, Rincon-Rincon was a police officer in Matamoros, Tamaulipas, patrolling its streets with Jorge Eduardo Costilla-Sanchez, the eventual leader of the Cartel Del Golfo. During this time, Rincon-Rincon and Costilla were in charge of drug houses in Matamoros, Tamaulipas, according to testimony. Rincon-Rincon was eventually one of Costilla’s most trusted associates. In 2003, Osiel Cardenas-Guillen was arrested and Jorge Eduardo Costilla-Sanchez then took over the leadership of the Gulf Cartel. The jury heard testimony that many individuals involved in the drug transactions would have to often go through Rincon-Rincon to relay information to Costilla in order to receive authorization to transport drugs, to make bribe payments and to negotiate drug terms. Rincon-Rincon would also receive large amounts of bulk cash currency that were proceeds from the sale of large amounts of Gulf Cartel narcotics.
During his association with the Cartel, Rincon-Rincon was also in charge of a “Polla,” which involves the collection of money for the purchase of cocaine and its distribution to those who contributed to it. Several co-defendants testified that Rincon-Rincon would collect between $500 and $700 thousand from Gulf Cartel conspirators and then return with 100 to 120 kilograms of cocaine which would then be imported into the U.S. by Gulf Cartel associates. According to testimony, Rincon-Rincon conducted the “Polla” at least once per month from approximately 2003 to 2010.
An internal power struggle later developed which eventually led to a fire fight on Oct. 25, 2011, at which time another plaza boss was killed. As a result, Rincon-Rincon and others fled into the United States and were captured by law enforcement on Oct. 26, 2011.The case was investigated by Homeland Security Investigations, Drug Enforcement Administration, FBI, Border Patrol, Texas Department of Public Safety, Cameron County Sheriff’s Office and police departments in Brownsville and Progresso. Assistant United States Attorneys Angel Castro and Jody L. Young prosecuted the case.
Goodwin: “another Pedophile Headed to Prison”Read the Press Release
Kanawha Co. man sentenced to 3 years in federal prison for possessing child pornography
CHARLESTON, W.Va. – “We’ve taken another pedophile off the streets. He is now on his way to prison,” U.S. Attorney Booth Goodwin announced today in the wake of a Kanawha County man’s federal sentencing on child pornography charges. Tracey E. Cooper, 38, of Giles, Kanawha County, W.Va., was sentenced today to three years in prison followed by 15 years of supervised release. The sentence was handed down today by United States District Judge John T. Copenhaver, Jr. Cooper previously pleaded guilty in January.
Cooper collected more than 600 pictures and videos of children having sex or performing sexual acts. The child pornography was found on Cooper’s computer after he downloaded it from the Internet. Cooper used the peer-to-peer file sharing programs Shareaza and Aires to download, receive and share child pornography. Cooper possessed more than 600 images of child pornography and traded the images with other pedophiles over the Internet.
“This kind of crime is downright sickening,” Goodwin said. “Behind every piece of child pornography traded over the Internet, there is a child somewhere who has been exploited in the most heinous way imaginable. People who download and share these pictures encourage that exploitation. My office will continue to be relentless in prosecuting these cases.”
The Federal Bureau of Investigation’s West Virginia Cyber Crimes Task Force, the Kanawha Bureau of Investigation and the Kanawha County Sheriff’s Department conducted the investigation. Assistant United States Attorney Lisa Johnston handled the prosecution.
Cooper entered into a stipulation agreeing to pay $10,000 in restitution to a known victim in the case.
This case was prosecuted as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia. Since January 2012, twenty-two defendants have been convicted as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia. Seventeen defendants have been sentenced to a total of more than 82 years (987 months, to be exact) in federal prison. The remaining five defendants currently await sentencing.
Goodwin Urges West Virginians to Join in Observance of National Peace Officers Memorial Day WednesdayRead the Press Release
Police Week salutes our heroic members of law enforcement
CHARLESTON, W.Va. - United States Attorney Booth Goodwin today asked West Virginians to join in recognition of Peace Officers Memorial Day on Wednesday, May 15, 2013. Peace Officers Memorial Day is a daylong observance held nationwide to honor the extraordinary service and sacrifice of our nation’s police officers. Peace Officers Memorial Day is held in conjunction with national Police Week, which is observed the entire week of May 12-18, 2013.
U.S. Attorney Booth Goodwin said, “The selfless and unsung work that our men and women in uniform do each day is remarkable. Members of law enforcement give their all – 24 hours a day, seven days a week - to keep us safe. And, tragically, thousands of brave peace officers throughout our nation’s history have made the ultimate sacrifice while protecting their fellow citizens. Peace Officers Memorial Day gives us a chance to honor them.”
Goodwin continued, “Police officers do much more than just catch the bad guys and put them in jail. They are community problem solvers. They do it all: whether it’s helping a stranded motorist, apprehending a gun-wielding robbery suspect, stopping drug traffickers from ravaging our communities, or serving as role models to our children. We can always count on them.”
“I encourage all West Virginians: if you see a member of law enforcement on Wednesday or at any time this week, take a few seconds to say ‘thank you.’”
In accordance with a proclamation issued by the President this week, all United States flags at federal facilities will be flown at half-staff on Peace Officers Memorial Day. The presidential proclamation similarly encourages all Americans to display the flag at half-staff from their homes and businesses on Wednesday.
Click on the links below to listen to audio clips provided byU.S. Attorney Booth Goodwin
Goodwin audio clip part 1
Goodwin audio clip part 2
Goodwin audio clip part 3
Garden City Man Pleads Guilty to Possessing Sawed-Off ShotgunRead the Press Release
BOISE – Jesse Scott Fleming, 24, of Garden City, Idaho, pleaded guilty today in United States District Court in Boise to unlawfully possessing a firearm, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Fleming was arrested after he attempted to sell marijuana to an undercover police officer on September 17, 2012. After he was arrested officers discovered a sawed-off shotgun in Fleming’s vehicle. Fleming admitted to possessing the sawed-off shotgun. Fleming is also prohibited from possessing firearms because he was previously convicted of the felony crime of aggravated assault in 2009.
The charge is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years supervised release. The Government is also seeking forfeiture of the sawed-off shotgun.
Sentencing is set for July 25, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by the Ada County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is 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.
Garcia Guilty PleaRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced that DANIEL GARCIA, age 36, pled guilty today before United States District Court Judge James Brady to one count of conspiracy to commit wire fraud in connection with a scheme to defraud the State of Louisiana’s Motion Picture Industry Development Tax Credit Program (“Tax Credit Program.”) GARCIA faces a sentence of up to five (5) years imprisonment, three (3) years of supervised release following imprisonment, and a fine of $250,000. The sentencing date has yet to be scheduled.
At today’s hearing, GARCIA admitted that he owned and operated DMG Holdings, LLC and Louisiana Film Finishers, LLC, companies that provided technical services for the production of motion pictures. GARCIA admitted, within a nine-day period beginning on June 10, 2009, he conspired with at least one other individual to transfer $1,000,000 he received from an investor through four separate film production companies. These transfers created cancelled checks which he later used as false documentation for $3,000,000 of motion picture productions.
The Louisiana Economic Development Office (“LED”) is a state entity which mission is to lead economic development for the state of Louisiana. LED operated the Motion Picture Industry Development Tax Credit Program (“Tax Credit Program”) which was designed to entice production companies to shoot films and video productions in Louisiana. The Tax Credit Program provided a 30% tax credit on qualified expenditures for the production of films in Louisiana. Once issued by LED, the tax credits were fully transferable.
Between February 10, 2009 and March 31, 2010, GARCIA applied for, and received, tax credits from the LED for various movies. In total, $3,000,000 of the purported expenditures related to films were based upon the false expenditures created in the scheme described above. GARCIA admitted that he was not entitled to $900,000 of the tax credits he received for these films.
U.S. Attorney Donald J. Cazayoux, Jr., stated, “We will continue our commitment to prosecuting anyone abusing the Tax Credit Program. Those who misuse this program, through fraud and deceit, undermine the purpose of the Tax Credit Program and will be investigated and prosecuted to the fullest extent of the law. We appreciate the work of the FBI and the Louisiana State Inspector General’s Office in this case and the cooperation of the LED.”
Louisiana State Inspector General Stephen Street commented, “This sort of blatant thievery unfairly mars the whole Tax Credit Program, and cannot be tolerated. We are committed to working with the FBI and United States Attorney to root this sort of corruption out wherever it may exist.”
This investigation was conducted by the FBI and the Louisiana State Inspector General’s Office and is being prosecuted by Assistant United States Attorney Frederick A. Menner, Jr.
Four More Men Sentenced for Providing Material Support to TerroristsRead the Press Release
MINNEAPOLIS—Earlier today in federal court, four more men were sentenced for their roles in terrorism offenses. United States District Court Chief Judge Michael J. Davis sentenced Omer Abdi Mohamed to 144 months in federal prison, followed by 20 years of supervised release. He was ordered to remain in the custody of the Bureau of Prisons. Abdifatah Yusuf Isse, Salah Osman Ahmed, and Ahmed Hussein Mahamud were each sentenced to 36 months in federal prison, followed by 20 years of supervised release. Isse, Ahmed, and Mahamud cooperated with the United States and testified at the trial of Mahamud Said Omar. Yesterday, Judge Davis sentenced Omar to 20 years in prison following his conviction at trial for numerous terrorism offenses relating to his provision of money to al-Shabaab fighters and the facilitation of travel for young men from Minnesota to join al-Shabaab, a U.S.-designated Foreign Terrorist Organization based in Somalia.
Relative to today’s sentencings, Omer Abdi Mohamed, age 28, of Minneapolis, pleaded guilty on July 18, 2011, to one count of conspiracy to provide material support to co-conspirators who intended to murder, kidnap, or main Ethiopian and Somali government troops. Abdifatah Yusuf Isse, age 29, of Minneapolis, pleaded guilty on April 24, 2009, to one count of providing material support to terrorists. Salah Osman Ahmed, age 30, of Minneapolis, pleaded guilty on July 28, 2009, to one count of providing material support to terrorists. And Ahmed Hussein Mahamud, age 28, formerly of Eden Prairie but most recently of Westerville, Ohio, pleaded guilty on February 6, 2012, to one count of conspiring to provide material support to al-Shabaab.
Following today’s sentencings, United States Attorney B. Todd Jones said, “These defendants, by providing material support to a designated terrorist organization, broke both the law and the hearts of family members across the Twin Cities. They facilitated the travel of other men to Somalia to fight or they themselves traveled to fight, often leaving Minnesota in the dead of night, without so much as a word to their parents. Today’s sentences reflect not only the misguided and insidious nature of their crimes, but also the importance of cooperation and community involvement in preventing potential acts of terrorism.”
J. Chris Warrener, Special Agent in Charge of the Federal Bureau of Investigation’s Minneapolis Field Office, which leads the Minnesota Joint Terrorism Task Force, the primary investigative entity in this case, added, “The sentencing hearings of these four young men serve as reminders that the FBI will continue its efforts to thwart the radicalization of our youth through both investigations and engagement of our community. We remain steadfastly committed to each.”
In his plea agreement filed on July 18, 2011, Omer Abdi Mohamed admitted that between September and December of 2007, he assisted men from Minneapolis in traveling to Somalia to fight with al-Shabaab, knowing that once there, the men intended to murder, kidnap, or main Ethiopian and Somali government troops. Mohamed specifically attended meetings at a Minneapolis mosque, restaurant, and private residence, where he and his co-conspirators formed a secret plan that called for Somali men residing in Minneapolis to travel to Somalia to join al-Shabaab. He also facilitated the travel of several of these young men, helping them obtain plane tickets as well as the false itinerary needed by one man to mislead his family about the purpose of his travel. Mohamed was also present in Minneapolis when money was raised for such travel. Many of those donations came from unsuspecting members of the Somali-American community, who were told the money was to be used for Somalia relief efforts.
In his plea agreement filed on April 24, 2009, Abdifatah Yusuf Isse admitted that during 2007, he met other men at a Minneapolis mosque to conspire to provide money and people to fight in Somalia. Then, on December 8, 2007, he traveled to Somalia and joined al-Shabaab. While there, he participated in fund-raising calls back to Minnesota in an effort to garner money to purchase his own AK-47 rifle. In Somalia, Isse stayed at an al-Shabaab safe house and briefly attended an al-Shabaab training camp before quitting the camp in the Spring of 2008.
In his plea agreement filed on July 28, 2009, Salah Osman Ahmed admitted that in October 2007, he conspired with others in Minneapolis to provide money and people to al-Shabaab. To that end, he raised money from the Somali-American community in Minnesota under false pretenses. Then, on December 6, 2007, Ahmed traveled from Minneapolis to fight in Somalia. While in Somalia, he received basic training from al-Shabaab on AK-47s, rocket-propelled grenades, and machine guns. He also assisted in building a training camp for al-Shabaab, before quitting camp with Isse.
In his plea agreement filed on February 6, 2012, Ahmed Hussein Mahamud admitted that from 2008 through February of 2011, he conspired with others to provide money and people to al-Shabaab. Specifically, in the summer of 2008, he assisted with fundraising under false pretenses, claiming the money raised would be used for a local mosque or to help orphans in Somalia, when, in fact, it was for purchasing airline tickets and paying other expenses for men who traveled from Minneapolis to Somalia to join al-Shabaab. In 2009 and 2010, he also conspired to send money to an al-Shabaab fighter to assist in buying weapons. He sent money via wire transfers to a co-conspirator in Somalia, knowing the money would be used to purchase weapons or otherwise support al-Shabaab.
This case arose out of “Operation Rhino,” a federal investigation that has focused primarily on the disappearance of approximately 20 young, ethnic Somali men from the Twin Cities area during the past six years. The young men were recruited to fight with al-Shabaab. The earliest groups of men departed the United States in October and December of 2007, while others left in February 2008, August 2008, September 2008, November 2008, and October 2009. Upon arriving in Somalia, the men resided in al-Shabaab safe houses in Southern Somalia until constructing an al-Shabaab training camp, where they were trained from that point on. Senior members of al-Shabaab and a senior member of al-Qaeda in East Africa conducted those trainings.
In July 2008, men from Minneapolis as well as other Americans participated in an al-Shabaab ambush of Ethiopian troops. On October 29, 2008, one of those men, Shirwa Ahmed, who left Minneapolis in December 2007, detonated a vehicle-borne improvised explosive device as one of five coordinated suicide bombings in Bosaso and Hargeisa, Somalia. Ahmed is believed to have become the first American suicide bomber in Somalia. On May 30, 2011, Farah Mohamed Beledi, an indicted individual who departed Minnesota in October 2009, was killed at a checkpoint in Somalia as he attempted to detonate his suicide vest. To date, approximately 18 individuals have been charged through Operation Rhino, and eight have been convicted. The remaining ten are believed to be fugitives or have been killed in Somalia.
These cases resulted from a long-term investigation conducted by the FBI’s Minneapolis Joint Terrorism Task Force.
The case was prosecuted by Assistant U.S. Attorneys Charles J. Kovats, John Docherty, and LeeAnn K. Bell, and William M. Narus of the Counterterrorism Section of the U.S. Department of Justice’s National Security Division.Former Personal Care Attendant Sentenced for Stealing the Identity of A Minor in Her CareRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a former Twin Cities personal care attendant was sentenced for stealing the identity of a minor in her care. United States District Court Judge Richard H. Kyle sentenced Charnell Alene Hudson, age 40, unknown residence, to 42 months on one count of mail fraud and one count of aggravated identity theft, as well as pay restitution to the victims. Hudson was indicted on July 23, 2012, and pleaded guilty on November 19, 2012.
In her plea agreement, Hudson acknowledged that between June 2008 and September 2010, she devised and executed a scheme to defraud by stealing the identity of a minor in her care. In 2005, Hudson worked as a personal care attendant for the elderly and disabled in the Twin Cities area. That year, she was hired to provide care for a minor at the minor’s home. In 2006, the minor moved in with Hudson. Hudson assumed responsibility for all aspects of the minor’s care and had access to all of the minor’s personal identifying documents. When the minor moved out the next year, Hudson kept all of the minor’s identifying documents and information.Hudson used the minor’s Social Security card and birth certificate to obtain a Minnesota driver’s license and a title for a vehicle. Since Hudson had a criminal history that prevented her from opening a licensed daycare, she also used the minor’s identity to establish a business called “Lil Dumplin’s Daycare,” which allowed her to receive $70,000 from Ramsey County pursuant to a contract to provide services to the community. On March 25, 2010, Hudson also used the minor’s identity to purchase a $153,000 home in St. Paul, Minnesota. Hudson then used the minor’s identity to send monthly payment checks of $916.12 to the seller of the house.
This case was the result of an investigation by the U.S. Postal Inspection Service and the Social Security Administration’s Office of the Inspector General. It was prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.Former Letter Carrier Sentenced for Stealing MailRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a former U.S. postal carrier was sentenced for stealing from the mail he delivered. United States District Court Judge John R. Tunheim sentenced Giang Nguyen, age 49, of Superior, Wisconsin, to two years of probation, along with payment of restitution, and 100 hours of community service on one count of theft of mail by a postal employee. Nguyen was charged via an Information on September 6, 2012, and pleaded guilty on September 26, 2012.
Following today’s sentencing, Pete Gately, Special Agent in Charge of the U.S. Postal Service-Office of Inspector General (“USPS-OIG”), said, “The majority of U.S. Postal Service employees are dedicated public servants who take great pride in ensuring the sanctity and security of the U.S. Mail. Unfortunately, Giang Nguyen betrayed the trust placed in him, and his actions resulted in deserved consequences for violating that trust. Today’s outcome demonstrates the ongoing commitment of the USPS-OIG and the U.S. Attorney’s Office to vigorously investigate and prosecute those matters. The public can remain confident that the USPS-OIG will continue to ensure the security of their mail.”
In his plea agreement, Nguyen admitted that from March 2010 to January 7, 2011, he removed applications for Menards rebate checks, the actual rebate checks, and Menards Big Game Money Cards from the mail he was entrusted to deliver. During this period, Nguyen was employed by the Duluth Post Office. Nguyen used the rebate checks and Big Game Money Cards that he stole to make purchases at Menards. He also altered the stolen rebate check applications so that Menards would issue the checks to him, rather than the customers on his route. In total, Nguyen stole at least 77 pieces of mail intended for Menards and residents on his route. Through his activity, Nguyen stole at least $1,456.75.
This case was the result of an investigation by the U.S. Postal Service-Office of Inspector General. The case was prosecuted by Assistant U.S. Attorneys John E. Kokkinen and Lola Velazquez-Aguilu.Former Goodwill Industries Official Sentenced to Federal Prison for Theft ConvictionRead the Press Release
ALBUQUERQUE – This morning, Francis Louis Carrillo, 49, of Albuquerque, N.M., was sentenced to 12 months in federal prison followed by three years of supervised release for his conviction for stealing money from a program receiving federal funds. Carrillo also was ordered to pay restitution in the amount of $56,417.82. Carrillo’s sentence was announced by U.S. Attorney Kenneth J. Gonzales, and Phyllis Grissom-Robinson, Special Agent in Charge of Region 6 of the Office of Inspector General, U.S. Department of Housing and Urban Development (HUD), and William R. Jones, Acting Special Agent in Charge of the Washington Regional Office of Labor Racketeering and Fraud Investigations, U.S. Department of Labor (DOL).
Carrillo was indicted in May 2012, and charged with theft of government property and theft concerning programs receiving federal funds. The six-count indictment charged Carrillo with embezzling thousands of dollars in federal funds provided through grant programs administered by HUD and the U.S. Department of Labor (DOL). At the time of the offenses charged, Carrillo was employed as the Deputy Director of Community Programs at Goodwill Industries of New Mexico (Goodwill).
HUD funds the Supportive Housing Program (SHP) which provides affordable housing for low-income Americans and DOL funds the Senior Community Service Employment Program (SCSEP) which provides vocational training for older Americans. Although funded by HUD and DOL, the SHP and SCSEP are administered at the local level by community organizations and not-for-profit corporations. Goodwill, a not-for-profit corporation that provides skill development and vocational training opportunities to community members facing barriers to employment, received more than $80,000 per year in 2008, 2009 and 2010 through the SHP and SCSEP programs. Goodwill was permitted to use these federal funds to provide short-term emergency rental assistance to local residents facing eviction and homelessness as the result of sudden job loss or other economic setback. According to the indictment, between 2008 and 2010, Carrillo engaged in a scheme to steal funds from Goodwill, including funds received through the SHP and SCSEP programs, by issuing false and fraudulent checks for short-term rental assistance.
In Oct. 2012, Carrillo entered a guilty plea to Count 6 of the indictment, charging him with theft concerning programs receiving federal funds. According to the plea agreement, Carrillo was employed by Goodwill from 2004 to 2010, where he initially held the title of Program Manager and later was promoted to Deputy Director of Community Programs. Carrillo’s responsibilities included administering programs that received federal funds and approving applications by low-income clients for emergency rental assistance.
In entering his guilty plea, Carrillo admitted abusing his position at Goodwill by engaging in a scheme to approve and issue checks for false applications for emergency rental assistance. Upon issuance of the checks, Carrillo would have the payees either cash the checks and provide him with the funds, or endorse the checks so that Carrillo could cash them himself. Carrillo also admitted that, between 2006 and 2010, he caused approximately 130 checks to be issued by Goodwill under false pretenses and fraudulently converted the proceeds of those checks to his own use. During the course of his illegal scheme, Carrillo embezzled approximately $80,000 from Goodwill.
As required by the terms of Carrillo’s plea agreement, the United States will move to dismiss Counts 1 through 5 of the indictment.
The case was investigated by HUD’s Office of Inspector General and DOL’s Office of Labor Racketeering and Fraud Investigations, and was prosecuted by Assistant U.S. Attorney John C. Anderson.Former Construction Company Owner Indicted in Nevada for Income Tax EvasionRead the Press Release
A federal grand jury in Nevada today returned an indictment against a former construction company owner for evading federal income and employment taxes, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Internal Revenue Service-Criminal Investigation (IRS-CI) Chief Richard Weber, FBI Acting Special Agent in Charge William C. Woerner of the Las Vegas Field Office, and Sheriff Doug Gillespie of the Las Vegas Metropolitan Police Department.
Leon Benzer, 46, of Las Vegas, was charged in U.S. District Court in the District of Nevada with two counts of tax evasion.
In January 2013, Benzer was indicted in a related case on charges of wire fraud and conspiracy to commit wire and mail fraud. According to court documents, from approximately August 2003 through February 2009, Benzer orchestrated a scheme to direct construction defect litigation and repairs at condominium complexes to a conspiring law firm and Benzer’s construction company, Silver Lining Construction (SLC). As a result of this scheme, the indictment alleges that SLC was awarded a contract worth over $7 million for work at the Vistana Homeowner’s Association (Vistana HOA) in Las Vegas. The case is pending.
According to the indictment returned today, in August 2006 Benzer filed five years’ worth of personal tax forms and business tax returns without any payments accompanying those returns. As of April 2007, Benzer had allegedly failed to pay his personal tax liability of approximately $459,000 and SLC’s employment tax liability of approximately $687,000 and unemployment tax liability of approximately $18,000. In May 2007, the IRS issued a notice of intent to file a levy; Benzer subsequently appealed this process and indicated that he wanted to enter into an “offer-in-compromise” with the IRS to pay a portion of what was owed in full satisfaction of all his tax liabilities. According to the indictment, during this offer-in-compromise process, the IRS requested detailed financial information from Benzer.
Between March 2005 and January 2008, the indictment alleges that Benzer and SLC received over $7 million from the Vistana HOA contract, including a wire transfer of over $1 million on Sept. 21, 2007, to a personal US Bank account that Benzer opened in August 2007. The indictment alleges that when Benzer filed certain IRS forms related to the offer-in-compromise process on Sept. 25, 2007, he failed to disclose this personal U.S. Bank account or the assets contained in it.
The maximum prison sentence for each count of tax evasion is five years in prison and a maximum fine of $100,000.
The charges and allegations against the indicted defendant are merely accusations, and the defendant is considered innocent unless and until proven guilty.
The case is being prosecuted by Senior Deputy Chief Kathleen McGovern, Deputy Chief Charles La Bella and Trial Attorney Thomas B.W. Hall of the Criminal Division’s Fraud Section. The case is being investigated by IRS-CI, the FBI and the Las Vegas Metropolitan Police Department, Criminal Intelligence Section.
Today’s charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Former City Employee John McDaniel Sentenced for FraudRead the Press Release
PHILADELPHIA - Former Philadelphia city employee John D. McDaniel, 39, of Philadelphia, was sentenced today to 12 months and one day in prison for a wire fraud charge connected to the theft of $100,000 from a campaign/political committee. McDaniel, the former Treasurer of the campaign/political committee for a Philadelphia City Councilperson, was fired from his city-paid airport job after the city Board of Ethics identified numerous reporting irregularities by McDaniel in the campaign’s required city filings.
Between 2009 and 2011, McDaniel used several methods to routinely and, at times, without authorization, withdraw funds from the committee account, which funds he then used for his own purposes and other purposes. At times, McDaniel wrote and cashed checks to himself, and wrote checks to Progressive Agenda, a political action committee which he controlled, from which he then took stolen funds. McDaniel concealed the theft by filing false and incomplete campaign finance reports.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Paul L. Gray.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former Chisholm Resident Charged with Defrauding Customers of Classic Car Restoration CompanyRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 26-year-old Michigan man, formerly of Chisholm, was charged with defrauding customers of Memory Lane Classics, a company that restored and rebuilt classic cars. Edwin Scott Verdung was specifically charged via an Information with one count of wire fraud and one count of transaction money laundering. He allegedly defrauded customers out of more than $1 million.
From April 2007 through May 2010, Verdung purportedly took money from individuals who were in the market for classic automobiles or who brought their own vehicles into the shop to be restored or rebuilt. Despite accepting the funds, however, Verdung allegedly failed to provide the vehicles or the restoration services promised. In some instances, he reportedly represented falsely that he had made progress in rebuilding or restoring a customer’s vehicle, when, in fact, he had done nothing along those lines. Verdung also allegedly required some customers to make “progress” payments, providing those customers with fraudulent photographs as evidence of the progress made in restoring the vehicle. Verdung spent the money he received on things other than restoring vehicles as he had promised.If convicted, Verdung faces a potential maximum penalty of 20 years in federal prison on the wire fraud count and 10 years in federal prison on the transaction money laundering count. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the Internal Revenue Service-Criminal Investigation, Minnesota Bureau of Criminal Apprehension, and the Chisholm Police Department. It is being prosecuted by Assistant United States Attorney Nicole A. Engisch.
A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.