Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 23 April 2013
Maryland Business Owner Pleads Guilty to Health Care Fraud in Scheme Involving More Than $200,000 in False Medicaid Claims-Scheme Carried Out from 2007 to 2011, Involved Incontinence Supplies-Read the Press Release
WASHINGTON – Tina Jackson-White, the owner and president of Family Home Medical Equipment and Supplies, LLC, pled guilty today to a federal charge of health care fraud stemming from a scheme in which the firm submitted and collected more than $200,000 in fraudulent Medicaid claims.
The guilty plea was announced by U.S. Attorney Ronald C. Machen Jr.; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Nicholas DiGiulio, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS - OIG) for the region including the District of Columbia, and Charles J. Willoughby, District of Columbia Inspector General.
Jackson-White, 51, of Bowie, Md., pled guilty in the U.S. District Court for the District of Columbia. The Honorable Amy Berman Jackson scheduled sentencing for July 9, 2013. Jackson-White faces a statutory maximum of 10 years in prison and financial penalties. Under federal sentencing guidelines, the parties have agreed that she faces a likely range of 24 to 30 months of incarceration and a fine of up to $50,000. As part of her plea agreement, Jackson-White has agreed to pay $212,893 in restitution to the District of Columbia Medicaid program.
According to a statement of offense, signed by the defendant as well as the government, Family Home Medical Equipment and Supplies provided durable medical equipment, or DME, such as adult incontinence supplies and other medical products to Medicaid beneficiaries in the District of Columbia and Maryland. Under Medicaid rules, the company would pay for the cost of the products supplied to beneficiaries and then submit claims for reimbursement.
Between January 2007 and December 2011, the company billed D.C. Medicaid for a total of $212,893 in fraudulent claims. The claims, knowingly submitted by the defendant, were for incontinence products, such as briefs, diapers and liners, which were not actually provided.
“Medicaid is designed to provide low-income families and people with disabilities with access to critical health care,” said U.S. Attorney Machen. “Over five years, this business owner defrauded the Medicaid program by submitting bills for more than $200,000 in supplies that were never delivered. This prosecution illustrates our commitment to fighting the fraud that undermines the integrity of federal health care programs and diverts resources intended to serve our neighbors in need.”
“Instead of providing medical supplies to citizens in the District of Columbia and Maryland, Ms. Jackson-White intentionally manipulated our Medicaid system and pocketed the money from claims she submitted,” said Assistant Director in Charge Parlave. “Along with our partners at HHS-OIF and DC-OIG, the FBI will continue to pursue all such fraudulent schemes which damage the ability of health care providers, employers and patients to participate in a system free of fraud and dishonesty.”
“As demands on the D.C. Medicaid program increase even as resources remain scarce, fraud is less tolerable than ever”, said HHS-OIG Special Agent in Charge DiGiulio. “Criminals such as Jackson-White will be brought to justice through aggressive investigation and prosecution.”
“This matter again represents how the District can work together with its federal colleagues in law enforcement to protect the interests of its citizenry and the public treasury,” said Inspector General Willoughby.
In announcing the guilty pleas, U.S. Attorney Machen, Assistant Director in Charge Parlave, Special Agent in Charge DiGiulio, and Inspector General Willoughby expressed appreciation for the work done by those who investigated the case from the FBI, HHS-OIG and the Medicaid Control Unit of the District of Columbia Office of the Inspector General. They also commended the work of Paralegal Specialists Krishawn Graham and Diane Hayes of the U.S. Attorney’s Office. Finally, they acknowledged the efforts of Assistant U.S. Attorney Lionel André, of the U.S. Attorney’s Office, and Special Assistant U.S. Attorney Stuart Silverman, of the D.C. Medicaid Control Unit, who are prosecuting the case.
13-141Manhattan U.S. Attorney Files Healthcare Fraud Lawsuit Against Novartis Pharmaceuticals Corp. for Orchestrating A Multi-Million Dollar Prescription Drug Kickback SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Ronald T. Hosko, the Assistant Director of the Federal Bureau of Investigation, Criminal Investigative Division (“FBI”), announced today that the United States has filed a civil healthcare fraud lawsuit against NOVARTIS PHARMACEUTICALS CORP. (“NOVARTIS”). The Government’s Complaint seeks treble damages and civil penalties under the False Claims Act against Novartis for giving kickbacks, in the form of rebates and discounts, to 20 or more pharmacies in exchange for their switching transplant patients from competitor drugs to NOVARTIS’s drug, Myfortic. The lawsuit alleges that, as a result of NOVARTIS’s kickback scheme, Medicare and Medicaid have issued tens of millions of dollars in reimbursements based on false, kickback-tainted claims.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, using the lure of kickbacks disguised as rebates, Novartis co-opted the independence of certain pharmacists and turned them into salespeople for one of its drugs. And by allegedly hiding this illegal quid pro quo from physicians, patients, and federal healthcare programs, Novartis caused the public to pay tens of millions of dollars for kickback-tainted drugs that were dispensed by pharmacists who were in cahoots with the company. Novartis, as we allege, is a repeat offender, having settled healthcare fraud charges based on kickbacks less than three years ago.”
FBI Assistant Director Ronald T. Hosko said: “The FBI takes these allegations very seriously because of the potential impact to the nation’s healthcare system and to the public. These cases are one of the highest priorities of the FBI’s health care fraud program. We have established a centralized unit called the Major Provider Response Team to provide nationwide investigative assistance given the complexity of such investigations.”
The following allegations are based on the Complaint filed today in Manhattan federal court:
NOVARTIS markets and manufactures Myfortic, an immunosuppressant drug approved for use by patients who have undergone kidney transplants. NOVARTIS markets Myfortic to hospital centers and pharmacies that serve these transplant patients. Since 2005, NOVARTIS has orchestrated a scheme whereby it offered kickbacks, disguised as “performance” rebates and discounts, to 20 or more pharmacies with influence over prescription decisions. In exchange, those pharmacies committed to use that influence to “convert” (i.e., switch) patients to Myfortic from competitor drugs and/or to oppose the use of a cheaper, generic immunosuppressant drug.
In one case, according to a NOVARTIS manager, NOVARTIS offered a pharmacist in Los Angeles a “bonus” rebate equal to 5% of that pharmacist’s annual Myfortic sales, amounting to several hundred thousand dollars, to induce the pharmacist to “shoulder the burden” of switching 700 to 1,000 transplant patients to Myfortic. NOVARTIS found that it was highly profitable to pay pharmacies even 10% or 20% in kickbacks in exchange for switching transplant patients to Myfortic because, in the words of a Novartis manager, the “short term cost” bought NOVARTIS “a long term annuity.”
In an effort to actively conceal the quid pro quo, NOVARTIS documented its relationships with the pharmacies in rebate and discount contracts that omitted the agreements between NOVARTIS and the pharmacies to switch patients to Myfortic or keep them from switching to competitor drugs. For example, in discussing a potential kickback relationship with a national pharmacy, NOVARTIS and the pharmacy recognized that, although a basic objective of that relationship was the “conversion” of patients to Myfortic, NOVARTIS “cannot put this in writing.” Further, the pharmacies hid the financial benefits they stood to gain from physicians, patients, and the federal healthcare programs, and instead, presented their efforts to switch patients to Myfortic as unbiased professional judgments.
NOVARTIS’s kickback scheme violated the federal anti-kickback statute, which prohibits the offer or payment of rebates and other types of remuneration to induce the purchase or recommendation of any drug or service covered by Medicare, Medicaid, or another federal healthcare program. By orchestrating this scheme, NOVARTIS further caused the pharmacies to submit tens of thousands of claims to Medicare and Medicaid, resulting in those programs paying out tens of millions of dollars in reimbursements based on false claims tainted by kickbacks.
The Complaint seeks treble damages and penalties under the False Claims Act, 31 U.S.C. §§ 3729 et seq., for the tens of millions of dollars in reimbursements that Medicare and Medicaid paid for Myfortic shipments that resulted from NOVARTIS’s kickback scheme. In addition, the United States seeks compensatory damages under the common law theory of unjust enrichment for the tens of millions of dollars in profits that NOVARTIS has obtained as result of Medicare and Medicaid reimbursements for Myfortic.
Mr. Bharara praised the investigative work of the FBI’s Major Provider Response Team. He also thanked the Office of Inspector General at the U.S. Department of Health and Human Services and the Commercial Litigation Branch of the U.S. Department of Justice’s Civil Division in Washington D.C., for their extraordinary assistance in this case.
The case is being handled by the Office’s Civil Frauds Unit. Mr. Bharara established the Civil Frauds Unit in March 2010 to bring renewed focus and additional resources to combating healthcare and other types of frauds. Assistant U.S. Attorneys Li Yu, Ellen M. London, and Rebecca C. Martin are in charge of the case.
U.S. v. Novartis Pharmaceuticals Corporation - Complaint in Intervention (11 Civ 8196)
Manhattan Physician Charged with Unlawfully Prescribing Prescription DrugsRead the Press Release
TOPEKA, KAN. – A doctor in Manhattan, Kan., has been charged with unlawfully prescribing prescription drugs, U.S. Attorney Barry Grissom said today.
Physician Michael Schuster, 53, who operates Manhattan Pain and Spine in Manhattan, Kan., is charged with one count of conspiracy to illegally distribute controlled substances.
A criminal complaint filed today in U.S. District Court in Topeka alleges that Schuster employed unlicensed staff members who distributed controlled substances to patients using Schuster’s signature on prescriptions while he was traveling out of the state or out of the country. The indictment alleges that Schuster was out of the office when a total of 542 patients received prescriptions for medications including oxycodone, morphine, hydromorphone, oxymorphone, fentanyl, amphetamine salts, tapentadol, methadone, methylphenidate, hydrocodone, diazepam, alprazolam, zolpidem titrate and clonazepam.
According to an investigator’s affidavit, the investigation began early in 2012 when the Riley County Police Department received reports that Schuster was issuing prescriptions for high dosages of scheduled drugs based on minimal or cursory physical examinations. As a result, several patients had overdosed on their medications and Riley County Police were investigating the diversion of prescription drugs. Simultaneously, physicians and hospital staff at Fort Riley voiced concerns to Army Criminal Investigative Division that active duty soldiers and family members who died from overdoses were patients of Schuster. Investigators examined records indicating Schuster prescribed unusually high dosages of scheduled narcotics despite questionable medical necessity and allowed his patients to get early refills of controlled substances.
The affidavit states that in order to prescribe controlled substances in a legal manner a physician must meet with a patient to determine that the medication being prescribed is for a legitimate medical purpose. Only licensed health care professionals including physicians and physician assistants can lawfully issue prescriptions for controlled substances.
Investigators documented various prescriptions bearing Schuster’s signature while he was on trips to Russia, South Africa, Uruguay, Canada, New York, Chile, Argentina, and Israel.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $1 million. If death or bodily injury results from the crime, the penalty is not less than 20 years. Investigating agencies include the Riley County Police Department; the Federal Bureau of Investigation; the Department of Defense, Criminal Investigative Service (DCIS); the Department of Health and Human Services, Office of Inspector General (HHS-OIG); the Drug Enforcement Administration (DEA); the Department of Homeland Security - Homeland Security Investigations (DHS-HSI); and the Diplomatic Security Service (DSS).
Man Indicted for Illegal Reentry After DeportationRead the Press Release
United States Attorney Brendan V. Johnson announced that a man has been indicted by a federal grand jury for allegedly living in the United States illegally after previously being deported to Mexico twice.
Abraham Cortez-Morales, age 25, was indicted by a federal grand jury on March 19, 2013 for Illegal Reentry after Deportation.
Cortez-Morales appeared before U.S. Magistrate Judge Veronica L. Duffy on April 12, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 2 years of imprisonment and a $250,000 fine.
The charge is merely an accusation and Cortez-Morales is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Cortez-Morales was remanded to the custody of the U.S. Marshal. A trial date has been set for June 18, 2013.
Louis Michael Healy Found Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that on April 16, 2013, in Great Falls, after a federal district court trial before Chief U.S. District Judge Dana L. Christensen, LOUIS MICHAEL HEALY, a 40-year-old resident of Hays and an enrolled member of the Fort Belknap Tribes, was found guilty of assault resulting in serious bodily injury, aggravated sexual abuse, and abusive sexual contact. Sentencing is set for July 26, 2013. He is currently detained.
At trial, the following evidence and testimony was presented to the jury.
On October 13, 2012, the victim drove HEALY to the store where he bought several black cans of Smirnoff. After leaving the store, the victim drank a little from a can, and HEALY drank one can very quickly. They drove to a hill where HEALY drank two or three more cans of Smirnoff. The victim drank an additional can. HEALY then asked the victim to marry him. The victim replied that she would not marry HEALY unless he could prove he had ceased speaking with his ex-girlfriend.
HEALY and the victim returned to his home on the Fort Belknap Indian Reservation. They turned on HEALY's computer and the victim read e-mails that indicated HEALY was still speaking with his ex-girlfriend. The victim was sitting in a rolling computer chair. She became upset and HEALY grabbed her neck with his right hand and pushed her across the floor in the chair. Due to the force of the push, she crashed and hit her head. When she awoke, HEALY had his hand on her throat applying pressure. He then walked to the kitchen and grabbed a knife. HEALY stood over the victim, placed the knife to her throat, and told her to get up.
The victim began to cry, her throat hurt, and HEALY told her to get into the bedroom. He instructed her to lie down and said, "if you don't stop **** crying, you know what you're going to get and we both aren't coming out of the room, so stop **** crying." At that point, the victim believed HEALY was going to kill her. The victim continued to complain that her throat hurt so HEALY went to the kitchen where he returned with water and a popsicle. She then began to vomit due to the drinking or strangulation she had experienced. According to the victim, she spoke with HEALY for a little bit while sitting on the bed until HEALY grabbed her and sexually assaulted her while she continued to tell him to stop. HEALY then told the victim to get back on the computer and instructed her to tell his ex-girlfriend that the victim was going to leave her alone.
HEALY went to the bathroom after this instruction. The victim decided this was her chance to escape and she ran out of the house to the next door neighbor's home. HEALY realized the victim had run away and he chased after her, but she got inside the neighbor's home safely.
The neighbors testified that they had awoken at approximately 4:00 a.m. to someone pounding on the door. The victim was at the door very upset and trying to get inside. The victim was crying and saying her boyfriend was trying to kill her. He had held a knife to her throat and she said, "he's going to kill me."
When law enforcement arrived at HEALY's home, HEALY was walking and carrying two black bags. HEALY was ordered to stop and HEALY turned around and yelled, "**** you." The police ordered HEALY to the ground and pepper sprayed him in an effort to subdue him.
An ambulance arrived and transported the victim to the hospital where a nurse immediately assessed that the victim had trouble swallowing due to strangulation. The nurse noted the left side of the victim's throat had a few areas of linear petechial, which is bruising around the throat. She applied ice and the victim told the nurse she was sexually assaulted and strangled. The hospital also performed a sexual assault examination. The victim ended up returning to the hospital a few days later due to continued throat pain and inability to swallow.
Assistant U.S. Attorney Jessica A. Betley prosecuted the case for the United States.
HEALY faces possible penalties of life imprisonment, a $250,000 fine and up to a lifetime of supervised release.
The investigation was conducted by the Federal Bureau of Investigation.
Local Chiropractor and Company Sentenced on Federal Healthcare Fraud and Pension Fraud ChargesRead the Press Release
St. Louis, MO - Dr. Anthony Calandro was sentenced to 72 months imprisonment and ordered to pay $1,018,746 restitution for billing 18 insurance companies and patients for services the patients did not receive and using pension plan funds, without authorization, to buy stock and to purchase several Florida condominiums. His business, Chiropractic Accident Centre of Crestwood, was sentenced on the healthcare fraud charges to two years of probation and ordered to pay a $2,000 special assessment.
ANTHONY WILLIAM CALANDRO, Chesterfield, Missouri, and Chiropractic Accident Centre of Crestwood, P.C., St. Louis, Missouri, were convicted in November of one felony count of health care fraud. Dr. Calandro was also convicted of three counts of making false statements related to health care services, the corporation was convicted of four counts of making false statements.
According to testimony presented at his trial, during 2010 and 2011, two undercover investigations revealed that Dr. Calandro and Chiropractic Centre billed multiple insurance companies for services that were never rendered. From 2006 to 2011, they submitted numerous reimbursement claims that falsely stated that the Chiropractic Centre had taken more x-rays than were actually taken. In almost all instances, only one or two x-rays were taken during a patient’s visit, but as many as eight to twelve x-ray views were billed. Dr. Calandro also billed for other non-rendered services, including whirlpool therapy, although he did not have a whirlpool. Because health insurance companies would not reimburse Dr. Calandro and Chiropractic Centre for a missed or canceled appointment, they falsely indicated that a billable service had been provided to patients. Using false procedure codes, they submitted thousands of false claims for missed and canceled appointments.According to court documents, on January 23, 2013, Dr. Calandro pled guilty in another case to mail fraud and making false statements to federal agencies concerning the Chiropractic Centre pension plan. Dr. Calandro was the trustee for the pension plan and had sole control over the funds of the pension plan. In 2005 and 2006, he used $60,000 of the pension plan funds to buy stock and $128,121 to make down payments on the purchase of three Florida condominiums in his name. To conceal the theft of the funds, from 2005 to 2009, Dr. Calandro falsely reported to his employees, the Department of Labor and the Internal Revenue Service that the pension plan owned the condominiums and other assets.
Dr. Calandro appeared today for sentencing before United States District Judge E. Richard Webber.
Dr. Calandro’s billing assistant Sherry Rueter, St. Louis, Missouri, previously pled guilty to related health care fraud charges and has been sentenced.
This case was investigated by the Federal Bureau of Investigation and the Department of Labor-Office of the Inspector General. Assistant United States Attorneys Dorothy McMurtry and Dianna Collins handled the case for the U.S. Attorney’s Office.
Lee's Summit Soccer Coach ChargedRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lee’s Summit, Mo., youth soccer coach was charged in federal court today with producing child pornography by secretly videotaping members of his soccer team.
Joel D. White, 40, of Lee’s Summit, was charged with producing child pornography in a criminal complaint that was filed in the U.S. District Court in Kansas City, Mo. White, who coaches a girls under-12 soccer team and a girls under-15 soccer team through a local soccer association, remains in federal custody pending a detention hearing.
According to an affidavit filed in support of today’s criminal complaint, law enforcement officers in Commerce City, Colo., discovered videos of nude minors on White’s camera. White was at a soccer stadium in Colorado last month for a World Cup qualifying game when the cameras were seized by law enforcement officers as part of a criminal investigation.
Several videos allegedly depict White positioning a video camera in a bedroom of his residence in such a way that the camera is hidden. Shortly after White leaves the room, the affidavit says, the videos depict several minors, approximately 11 or 12 years old, entering the room and changing their clothes. Minors are fully nude in the videos and do not appear to know they are being videotaped.
White allegedly told police that he videotaped nude minors 10 to 15 times without their consent from May to October 2012. According to the affidavit, at least four child victims have been identified so far in the investigation.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by the Lee’s Summit, Mo., Police Department and the Commerce City, Colo., 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."Lafayette Medical Clinic Owner Pleads Guilty to Bogus Prescription Drug SchemeRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that Gloria Adams, 63, of LaPlace, La., pleaded guilty before U.S. District Magistrate Judge Patrick J. Hanna for her part in a conspiracy to sell and fill prescriptions without doctor supervision.
According to the Stipulated Factual Basis at the guilty plea, Adams, who is not a doctor, opened Essential Medical Center (EMC) in Lafayette November 2005. She admitted to conspiring to dispense Controlled Dangerous Substances (CDS) such as Xanax and Lortab when no doctors were present at the clinic through a system called “pre-signing.” Pre-signing took place at the clinic when some non-physician staff used pre-signed documents to dispense prescriptions to patients while doctors were absent. She also admitted that she aided and abetted the practice of dispensing CDS outside the scope of professional practice and not for a legitimate medical purpose. Adams also admitted to using $15, 917 in proceeds derived from the illegal sale of controlled substances to engage in a monetary transaction through a financial institution.
Adams pleaded guilty to one count of unlawful dispensing of controlled substances and one count of money laundering. Each count carries a maximum penalty of up to 10 years in prison, a $250,000 fine, and three years of supervised release. Adams is scheduled to appear Aug. 8, 2013, for sentencing before U.S. District Court Judge Elizabeth E. Foote in Lafayette. Adams was indicted with co-defendants Dr. Kasimu Moody, Dr. Toland Ash, and Patrick Smith on May 12, 2011.The Drug Enforcement Agency (DEA)/Office of Diversion Control and the Internal Revenue Service (IRS) conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy is prosecuting the case.
Kaufman County Man Admits Possessing and Transporting Child PornographyRead the Press Release
Defendant Faces 30 Years in Federal Prison
DALLAS — Billy Wayne Johnson, 55, of Scurry, Texas, appeared Friday in federal court in Dallas, before Chief U.S. District Judge Sidney A. Fitzwater, and pleaded guilty to a superseding information charging one count of transportation of child pornography and one count of possession of child pornography. According to the terms of the plea agreement, if the Court accepts the plea, the parties agree that the appropriate term of imprisonment is 30 years in federal prison. Johnson, who has been in custody since his arrest in February 2013 on a related federal criminal complaint, also faces up to a $500,000 fine and a lifetime of supervised release. Sentencing is set for August 2, 2013, before Judge Fitzwater. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, the investigation began in December 2012 when a special agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) was conducting an undercover investigation to identify persons who were distributing child pornography using peer-to-peer file-sharing and the Internet. The investigation revealed an IP address that was connected to Johnson.
Johnson admitted that he obtained images of child pornography from other peer-to-peer users/members in his private network of contacts, and that he downloaded, viewed and shared images of child pornography. A forensic evaluation of Johnson’s laptop and thumb drive that were seized revealed more than 1600 images and 194 videos of child pornography. Also located on his laptop were lewd and lascivious photographs, as well as a video, that he admitted taking of boys under age six. He further admitted that some of the images and videos he possessed depicted sadistic images of prepubescent minors. He also admitted that he engaged in several chats with other members of his peer-to-peer network in which he and the others discussed their interest in molesting and sexually assaulting children under the age of six.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
ICE HSI is in charge of the investigation; Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Johnstown Man Tells Court He Distributed HeroinRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of distribution of heroin, United States Attorney David J. Hickton announced today.
Maurice L. Lindsay, 37, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on Nov. 3, 2011, Lindsay distributed less than 100 grams of heroin.
Judge Gibson scheduled sentencing for Sept. 5, 2013, at 10:30 a.m. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Lindsay.
Jefferson County Man Sentenced for Bank RobberyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 39-year-old Beaumont, Texas man has been sentenced to federal prison for bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Jonathan Keith Roberts pleaded guilty on Aug. 23, 2012, to two counts of bank robbery and brandishing a firearm during a crime of violence and was sentenced to 180 months in federal prison today by U.S. District Judge Thad Heartfield.
According to information presented in court, on Dec. 4, 2009, Beaumont police officers were dispatched to BBVA Compass Bank on Phelan Boulevard in Beaumont, in reference to a robbery. During their investigation, officers learned that a man wearing a black mask entered the front door when tellers were changing their registers, resulting in more cash than usual being on hand at the counter. He produced a handgun and started shouting at employees as he approached the counter. He placed a blue nylon bag on the counter and approximately three times, said, "Give me your money now!" The man pointed the gun at several of the bank stations, showing employees the registers from which he wanted money. He did not point to any of the stations that had no money in them, which was strange to the employees. When employees hesitated, he said he would shoot one of them to show them he was serious. Employees put the money in the bag as directed, and, after the man grabbed the bag, he told the employees to go to the back. He told them not to come out and then he quickly fled on foot. The employees locked themselves in a room to hide until officers arrived. It was later determined that $29,170.89 had been stolen during the robbery.On Jan. 9, 2010, as the manager of the Guaranty Bank on Interstate 10 East in Beaumont walked toward the entry door to lock the door in preparation to close for the day, a man wearing a mask and dressed in black entered the bank with an automatic handgun. The man pointed the firearm toward her and another worker and ordered them to get on their knees. They did not move fast enough so the man chambered a round in the gun to show that the gun was loaded and he was serious. In doing so, a .40 caliber live round dropped to the floor that had already been in the chamber. He then made them crawl to the back of the lobby and lay down on the floor.
A co-actor with a handgun entered the bank behind the first man. The co-actor went to the counter and approached a customer, pointed a gun at her back, and told her "get your hands up." The customer raised her hands and dropped $60 that she was holding in her hand. The robber took her money and ordered her to walk to the back of the lobby. He opened the door that led to the break room/restroom areas. At that moment, a hired contractor who had been working on signs at the bank, exited the restroom and was also ordered around at gunpoint. The co-actor then led Larzo and the contractor back to the lobby and onto the floor. An employee put money in a bag as instructed by one of the robbers. The employee also put a "dye pack" and "bait bills" in the bag. The robber wanted more money, and asked for a manager. The robber was told there was no more money and the robbers then left the bank on foot.
A witness had seen the two actors being dropped off at the bank by the driver of a car that left the area and parked in the area of a nearby hotel. When the actors left the bank, they ran to the get-away car. Witnesses observed the men as a dye pack exploded while one of the robbers was carrying the bag of money. The explosion caused the robber to fall, but he got up and limped to the vehicle which then sped away.
During a subsequent investigation of a robbery at Harbor Freight Store in Beaumont, officers interviewed Jonathan Roberts who confessed to taking part in both bank robberies as well as the Harbor Freight Store robbery. Roberts knew details about the robberies that were not released to the public, such as the description of the witnesses and the presence of the dye pack in the January 9, 2010 bank robbery.
This case was investigated by the FBI and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Baylor Wortham.
Jasper Wade Half Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on April 23, 2013, before Senior U.S. District Judge Jack D. Shanstrom, JASPER WADE HALF, a 37-year-old resident of Crow Agency and an enrolled member of the Crow Tribe of Indians, pled guilty to assault with a dangerous weapon. Sentencing has been set for July 24, 2013. He is currently detained.
In an Offer of Proof filed by Assistant U.S. Attorney Lori Harper Suek, the government stated it would have proved at trial the following:
On May 20, 2011, HALF and the victim were drinking alcohol in Hardin. They left together and were on the off-ramp outside Hardin, when they began to argue. They pulled over and began to fist-fight. The victim beat up HALF. HALF got into his car and drove away across the interstate. He then turned around and returned to the exit. When HALF was on the on ramp, he stopped, pulled out a .22 caliber rifle from the trunk, and shot at the victim. HALF individually loaded the second round and fired again.
Shortly after HALF shot the gun, he was arrested by Big Horn County Sheriff's deputies. HALF initially stated that he had aimed the gun "in the air." Later, HALF reconsidered his previous statement and explained that he had pointed the gun at the victim and then up in the air.
A witness saw the incident and explained that, to her, it looked like HALF was pointing the gun at and shooting at the victim.
HALF faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was a cooperative effort between the Big Horn County Sheriff's Office and the Federal Bureau of Investigation.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on April 18, 2013, before U.S. Magistrate Judge Jeremiah C. Lynch, the following individual was arraigned:
JOSHUA TYLER APLAND, a 21-year-old resident of Minot, North Dakota, appeared on charges of: Count I: conspiracy to possess with the intent to distribute methamphetamine, Counts II & III: possession with the intent to distribute methamphetamine and distribution of methamphetamine, Count IV: possession of a firearm in furtherance of a drug trafficking crime, and Count V: felon in possession of a firearm.
He is currently detained. If convicted of these charges, APLAND faces possible penalties of: Counts I, II & III: a mandatory minimum of 10 years in prison and could be sentenced to life and a $10,000,000 fine for each count; Count IV: a mandatory minimum of 5 years and could be sentenced to life and a $250,000 fine, to run consecutively to any other sentence; and Count V: 10 years and a $250,000 fine. Assistant U.S. Attorneys Joseph E. Thaggard and Zeno B. Baucus are the prosecutors for the United States. The investigation was a cooperative effort between the Federal Bureau of Investigation and the Montana Division of Criminal Investigation.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on April 23, 2013, before U.S. Magistrate Judge Keith Strong, the following individual was arraigned:
EDWARD HENRY PRATT, a 34-year-old resident of Browning, appeared on charges of assault with intent to commit murder, assault resulting in serious bodily injury, assault with a dangerous weapon, and being a felon-in-possession of a firearm. He is currently detained. If convicted of these charges, PRATT faces possible penalties of 20 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Laura B. Weiss is the prosecutor for the United States. The investigation was a cooperative effort between the Federal Bureau of Investigation and the Blackfeet Law Enforcement Services.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on April 18, 2013, before U.S. Magistrate Judge Keith Strong, the following individual was arraigned:
LEVI ANTHONY LABUFF, JR., a 36-year-old resident of Browning, appeared on charges of conspiracy to possess with the intent to distribute methamphetamine, possession with the intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of these charges, LABUFF faces possible penalties of a mandatory minimum of 5 years and could be sentenced to 40 years, a $5,000,000 fine, and four years supervised release. Assistant U.S. Attorney Ryan G. Weldon is the prosecutor for the United States. The investigation was conducted by the Federal Bureau of Investigation.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Informational: Federal Court ArraignmentRead the Press Release
The United States Attorney's Office announced that during a federal court session in Billings, on April 18, 2013, before U.S. Magistrate Judge Carolyn S. Ostby, the following individual was arraigned:
CARL CHESTER ALDEN, JR., a 23-year-old resident of Crow Agency, appeared on charges of involuntary manslaughter and (2) counts of assault resulting in serious bodily injury. He is currently released on special conditions. If convicted of these charges, ALDEN faces possible penalties of 10 years in prison, a $250,000 fine, and 3 years supervised release. Assistant U.S. Attorney Lori Harper Suek is the prosecutor for the United States. The investigation was a cooperative effort between the Federal Bureau of Investigation and the Bureau of Indian Affairs.
The defendant pled not guilty to the charges.
The charge, an indictment, information or complaint, is merely an accusation and all persons named as defendants are presumed innocent until proven guilty. A pre-trial conference and a trial date will be set and the United States will be required to prove the allegations set forth in the indictment beyond a reasonable doubt.
Indiana, Pa., Man Charged with Possessing Sexually Explicit Images of ChildrenRead the Press Release
PITTSBURGH, Pa. - A resident of Indiana County, Pa. has been indicted by a federal grand jury in Pittsburgh on a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The one-count indictment named Christopher Murdock, 27, as the sole defendant.
According to the indictment, on or about Nov. 17, 2012, Murdock possessed visual depictions, namely, videos and images in computer graphics files, the production of which involved the use of minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Pennsylvania State Police and the Federal Bureau of Investigation 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Imperial County Man Charged with Possession of Child PornographyRead the Press Release
El Centro, CA - United States Attorney Laura E. Duffy announced the arraignment this afternoon of Damian C. Mora on an indictment charging him with one count of possession of images of minors engaged in sexually explicit conduct, in violation of Title 18, United States Code, Section 2252(a)(4)(b), a felony.
According to the criminal complaint filed earlier in the case, the defendant posted about collecting photographs of minors engaged in sexually explicit conduct on a website relating to the sexual exploitation of children and also posted about his sexual interest in children. According to the complaint, the defendant’s collection included depictions of children, as young as one to two years of age, sexually exploited by adults.
The defendant was arrested by Immigration and Customs Enforcement, Homeland Security Investigations agents on April 9, 2013, in El Centro, California. Anyone with information relating to the charges against this defendant is urged to call 760 335 5389 and leave a confidential message, which will be returned by special agents investigating this case.
The public is reminded that an indictment is not evidence that the defendant committed the crime charged. The defendant is presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
This case stems from an investigation by the Department of Homeland Security, Immigration and Customs Enforcement’s Homeland Security Investigations.
DEFENDANT Case Number: 13cr1471JM Damian C. Mora SUMMARY OF CHARGESTitle 18, United States Code, Section 2252(a) (4) (Possession of Child Pornography)
INVESTIGATING AGENCY
Maximum Penalties: 10 years’ incarceration, $250,000 fine, a minimum of 5 years and up to a lifetime of supervised release and registration as a sex offender.Immigration and Customs Enforcement’s Homeland Security Investigations
Huntsville Army Officer Sentenced for False Statements and Theft of Government PropertyRead the Press Release
BIRMINGHAM – A judge today sentenced a U.S. Army officer to two years’ probation, to include six months of house arrest, and fined him $25,000 for making false statements to a department of the United States and for stealing government property, announced U.S. Attorney Joyce White Vance and Defense Criminal Investigative Service, Southeast Field Office, Special Agent in Charge John F. Khin.
U.S. District Judge Abdul K. Kallon sentenced LT. COL. JAMES O. McLINNAHAM, 45, on three counts of making false statements on official, confidential financial disclosure forms; one count of making false statements in a questionnaire for national security clearance; one count of theft of government property; and three counts of making false statements in work orders submitted to the Army print shop. A federal jury convicted McLinnaham in January. As part of McLinnaham’s sentence, Judge Kallon ordered him to pay $1,600 restitution to the government.
“We should be able to expect honesty and integrity from all government employees, including military personnel,” Vance said. “This case demonstrates our commitment to investigating and prosecuting those who do not live up to the trust that our citizens have placed in them. Government employees will be held accountable for theft and deceit,” she said.
“This field grade officer’s corrupt and unethical conduct was shameful,” Khin said. “DCIS and our partners will relentlessly pursue and bring to justice those who deliberately deprive America’s Warfighters of increasingly limited resources by stealing and abusing taxpayer funds,” he said.
McLinnaham was stationed at Redstone Arsenal in Huntsville. Evidence at his trial showed the he had certified that his financial disclosure forms were true when he had failed to disclose his position with an outside business, and to having received wages and other payments from that business. The evidence also showed that McLinnaham had certified that his questionnaire for national security clearance was true, when he had failed to disclose his association with the same business, a prior marriage, and a prior misdemeanor arrest. The defendant was required to fill out all these forms as part of his official duties with the U.S. Army.
False statements on the work orders related to McLinnaham certifying that posters printed and mounted by the Army print shop were for official purposes when they were actually for his outside business. The theft of government property charge related to the same posters, and to the defendant obtaining a conference table from Redstone Arsenal for which his business received a $400 credit toward the purchase of another conference table from a local furniture store.
The case was investigated by the U.S. Department of Defense Criminal Investigative Service, with assistance from the U.S. Army Criminal Investigation Command, and the Internal Revenue Service, Criminal Investigation Division. Assistant U.S. Attorneys Russell E. Penfield and Terence M. O’Rourke prosecuted the case.
Goodwin: Logan Doctor Pleads Guilty in Federal Pill-mill ProsecutionRead the Press Release
So-called doctor’s office lacked running water, medical equipment; doctor faces up to six years in federal prison
*Audio Clip included*
CHARLESTON, W.Va. –United States Attorney Booth Goodwin announced today that a Logan County doctor has pleaded guilty to federal drug charges in connection with a Logan County pill mill. Dr. Fernando Gonzales-Ramos, 47, pleaded guilty in federal court to conspiracy to distribute controlled substances without a legitimate medical purpose. Gonzales-Ramos was charged earlier this month in a legal filing known as an information.
“Dr. Gonzales-Ramos wasn’t operating a doctor’s office, he was running a drug den,” said U.S. Attorney Goodwin. “His so-called office had no exam table, no running water, and not even so much as a stethoscope. For thousands of dollars in cash, he was pumping out prescriptions for thousands of units of powerful narcotics.”
Gonzales-Ramos traveled from El Paso, Texas to Logan, West Virginia every three months to illegally dispense prescription painkillers from a Logan County office. Gonzales-Ramos also hired a commercial security guard who was armed with a firearm to protect his makeshift Logan County doctor’s office.
On March 2, 2013, an individual cooperating with the FBI entered the building that the defendant used as an office and paid $450 cash in exchange for a prescription for the painkiller hydrocodone. Prior to obtaining the prescription, the cooperating individual had not been examined or questioned by anyone. The cooperating individual obtained the prescription from Gonzales-Ramos’s office in less than three minutes.On March 3, 2013, law enforcement agents executed a search warrant on the building located at 2130 Old Logan Road in Logan, W.Va. During the execution of the warrant, agents found several individuals waiting inside to get written prescriptions for controlled substances from Gonzales-Ramos.
From September 2011 through March 3, 2013, Gonzales-Ramos ran a cash-only business at the Logan County office where he charged patients $450 for Schedule III controlled substance prescriptions and $500 for Schedule II controlled substance prescriptions. After collecting the cash payments, Gonzales-Ramos directed a known associate to make cash deposits into his personal bank accounts.
Gonzales-Ramos faces a minimum of 57 months and up to 71 months in prison when he is sentenced on August 14, 2013 by U.S. District Judge John T. Copenhaver, Jr.As part of his plea agreement, Gonzales-Ramos has agreed to surrender his Drug Enforcement Administration Certificate of Registration.
The investigation was conducted by the FBI, the U.S. 119 Drug Task Force, the West Virginia State Police, and the Logan County Sheriff’s Department. Assistant United States Attorney Steven Loew is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
# # #
Click here listen to an audio clip from U.S. Attorney Booth Goodwin
Glendale Man Who Played Role in Kickback Scheme That Bilked San Francisco Food Company Sentenced to Federal PrisonRead the Press Release
LOS ANGELES – A Glendale man who pleaded guilty in a scheme that led to his San Francisco employer suffering losses of more than $2 million – a plot that has connections to a kickback scheme that defrauded Huntington Hospital in Pasadena – has been sentenced to 20 months in federal prison.
Tony Hamedany, 58, who formerly resided in Hillsborough, California, was sentenced yesterday by United States District Judge Percy Anderson, who also ordered the defendant to pay $1.54 million in restitution to his former employer, Columbus Manufacturing, Inc., the San Francisco-based manufacturer of salame and other deli products.
Tony Hamedany pleaded guilty in October 2011 to two counts of mail fraud in relation to a kickback scheme he orchestrated during his tenure as director of engineering for Columbus. Tony Hamedany’s position at Columbus enabled him to negotiate construction contracts that he agreed to award in exchange for kickback payments from vendors. The construction contracts – for construction projects related to the salame company’s production facilities in South San Francisco – were adjusted so that vendors would pay Tony Hamedany kickbacks from payments they received from the contracts with Columbus.
Among the people who paid kickbacks to Tony Hamedany was Alexander Svidler, 55, of San Francisco, who pleaded guilty to mail fraud stemming from his participation in the kickback schemes pertaining to both Huntington Hospital and Columbus and was sentenced to 18 months in federal prison (see: http://www.justice.gov/archive/usao/cac/Pressroom/2012/152.html).
Tony Hamedany is the brother of David Hamedany, 56, also of Glendale, who is serving a three-year prison term for executing a $4.8 million kickback and fictitious billing scheme during his tenure as director of construction for Huntington Memorial Hospital. The Hamedany brothers ran separate, but parallel, kickback schemes and commingled proceeds in bank accounts in the names of entities formed by the brothers.
In addition to the Hamedany brothers and Svidler, an attorney has pleaded guilty pursuant to this investigation. John Haw, 52, of Aliso Viejo, pleaded guilty to two counts of mail fraud in relation to the Huntington Hospital kickback scheme in which Haw received business in exchange for kicking back money to an entity set up by the Hamedany brothers. Haw is scheduled to be sentenced by Judge Anderson on May 6.
The investigation into the kickback schemes, which cost victim companies approximately $7 million, was conducted by the Federal Bureau of Investigation.
Release No. 13-056
French Citizen Charged with Fraud in Airplane IncidentRead the Press Release
PHILADELPHIA - Philippe Jeannard, 61, of La Rochelle, France, is charged by information1, filed today, with one count of fraud in connection with an identification document, announced United States Attorney Zane David Memeger. According to the information, when Jeannard boarded a commercial airplane, on March 20, 2013, at Philadelphia International Airport, he possessed a fraudulent Air France identification card of a former Air France employee and used that fraudulent identification card to gain access to the plane’s cockpit.
If convicted, Jeannard faces a maximum sentence of five years imprisonment, a three year term of supervised release, a $250,000 fine, and a $100 special assessment.
The case was investigated by the Immigration and Customs Enforcement Homeland Security Investigations, the FBI, Department of Transportation Office of Inspector General, and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney K.T. Newton.
1An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Fort Pierre Man Charged with Failure to Pay Child SupportRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Pierre, South Dakota man has been indicted by a federal grand jury for Failure to Pay Legal Child Support.
Jason L. Hackett, age 36, was indicted by a federal grand jury on July 10, 2012. He appeared before U.S. Magistrate Judge Moreno on April 18, 2013 and pled not guilty to the indictment. The maximum penalty upon conviction is 2 years' imprisonment, a $250,000 fine, 1 year of supervised release, $100 special assessment and possible restitution.
The charge is merely an accusation and Hackett is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Department of Health and Human Services. Assistant U.S. Attorney Troy Morley is prosecuting the case.
Hackett was released on bond pending trial. A trial date has not been set.
Former Woodruff Arts Center Employee Pleads Guilty to EmbezzlementRead the Press Release
ATLANTA – Ralph Clark pleaded guilty today to embezzling more than $1.1 million from the Woodruff Arts Center while serving as Woodruff’s Director of Facilities.
“The Woodruff Arts Center is an important part of the fabric of our community,” said United States Attorney Sally Quillian Yates. “This defendant embezzled over $1 million from funds intended for the benefit of our citizens.”
"Mr. Clark chose to violate his position of trust at the Woodruff Arts Center,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “In addition, he violated federal law by attempting to profit through arrangements with various contracted vendors. The FBI will continue to provide assistance and investigative resources in such matters that negatively impact our non-profit, cultural institutions such as the Woodruff Arts Center.”
According to United States Attorney Yates, the charges and other information presented in court: In June 2006, Clark was promoted to Director of Facilities at the Woodruff Arts Center. He had been acting in this capacity for several months before he was promoted. His duties included ensuring that the Arts Center was properly maintained. As Director of Facilities, he was authorized to approve vendor contracts up to $50,000. While carrying out these duties between November 2005 and October 2012, Clark embezzled more than $1.1 million from the Woodruff Arts Center.
Clark embezzled the money by submitting invoices for bogus expenses to Woodruff Arts Center’s accounts payable department. The bogus invoices included invoices from his wife’s business – Lowe’s Services – which was an apartment cleaning business set up by his wife in 2003. The bogus Lowe’s Services invoices were for goods and services that were never provided to the Woodruff Arts Center, or were performed by Clark himself. After the accounts payable department received the invoice, they generated checks from their checking account at SunTrust Bank. Clark would then pick the checks up in person, and deposit them into accounts on which he had signatory authority.
Clark also defrauded the Woodruff Arts Center by requiring another vendor who provided maintenance services to pay him kickbacks based on inflated invoices. Clark told the vendor that in order for him to get future work he would have to inflate invoices Clark ultimately submitted to Woodruff Arts Center by 30%, and then give that 30% back to Clark.
Clark, 42, of Ellenwood, Ga., could receive a maximum sentence of ten years in prison and a fine of up to $250,000. However, in determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.Sentencing is scheduled for August 7, 2013, at 2:30 p.m. before United States District Judge Julie E. Carnes.
This case is being investigated by Special Agents of the Federal Bureau of Investigation.
Assistant United States Attorney Bernita B. Malloy is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Former Woodruff Arts Center Employee Pleads Guilty to EmbezzlementRead the Press Release
ATLANTA – Ralph Clark pleaded guilty today to embezzling more than $1.1 million from the Woodruff Arts Center while serving as Woodruff’s Director of Facilities.
“The Woodruff Arts Center is an important part of the fabric of our community,” said United States Attorney Sally Quillian Yates. “This defendant embezzled over $1 million from funds intended for the benefit of our citizens.”
“Mr. Clark chose to violate his position of trust at the Woodruff Arts Center,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “In addition, he violated federal law by attempting to profit through arrangements with various contracted vendors. The FBI will continue to provide assistance and investigative resources in such matters that negatively impact our non-profit, cultural institutions such as the Woodruff Arts Center.”
According to United States Attorney Yates, the charges and other information presented in court: In June 2006, Clark was promoted to Director of Facilities at the Woodruff Arts Center. He had been acting in this capacity for several months before he was promoted. His duties included ensuring that the Arts Center was properly maintained. As Director of Facilities, he was authorized to approve vendor contracts up to $50,000. While carrying out these duties between November 2005 and October 2012, Clark embezzled more than $1.1 million from the Woodruff Arts Center.
Clark embezzled the money by submitting invoices for bogus expenses to Woodruff Arts Center’s accounts payable department. The bogus invoices included invoices from his wife’s business – Lowe’s Services – which was an apartment cleaning business set up by his wife in 2003. The bogus Lowe’s Services invoices were for goods and services that were never provided to the Woodruff Arts Center, or were performed by Clark himself. After the accounts payable department received the invoice, they generated checks from their checking account at SunTrust Bank. Clark would then pick the checks up in person, and deposit them into accounts on which he had signatory authority.
Clark also defrauded the Woodruff Arts Center by requiring another vendor who provided maintenance services to pay him kickbacks based on inflated invoices. Clark told the vendor that in order for him to get future work he would have to inflate invoices Clark ultimately submitted to Woodruff Arts Center by 30%, and then give that 30% back to Clark.
Clark, 42, of Ellenwood, Ga., could receive a maximum sentence of ten years in prison and a fine of up to $250,000. However, in determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.Sentencing is scheduled for August 7, 2013, at 2:30 p.m. before United States District Judge Julie E. Carnes.
This case is being investigated by Special Agents of the Federal Bureau of Investigation.
Assistant United States Attorney Bernita B. Malloy is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Former North Las Vegas Corrections Officer Indicted on Excessive Force and Obstruction ChargesRead the Press Release
The Department of Justice today announced that a federal grand jury sitting in Las Vegas has indicted a former North Las Vegas corrections officer on federal civil rights and obstruction of justice charges. Stuart Barlow Johnson, 47, was indicted on one count of violating the victim’s civil rights by using excessive force on the victim and one count of obstruction of justice for falsifying an incident report in an attempt to cover up the incident.
The indictment alleges that on Nov. 29, 2008, while acting as a corrections officer at the North Las Vegas Detention Center, Johnson assaulted an unnamed victim, identified as “D.H.,” resulting in bodily injury to D.H. The obstruction count alleges that on the same day, Johnson knowingly falsified a document with the intent to impede, obstruct and influence the investigation and proper administration of a matter within the jurisdiction of the FBI.
If convicted, the defendant faces a statutory maximum penalty of 10 years in prison on the civil rights count and a statutory maximum penalty of 20 years in prison on the obstruction count.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
This case is being investigated by the Las Vegas division of the FBI. It is being prosecuted by Assistant U.S. Attorney Nicholas Dickinson of the District of Nevada and Trial Attorneys Ryan Murguía and Patricia Sumner of the Criminal Section of the Civil Rights Division of the Department of Justice.
Florida Real Estate Professional Sentenced to 26 Years in Federal Prison for Mortgage FraudRead the Press Release
Tampa, FL - U.S. District Judge Elizabeth A. Kovachevich sentenced John Lebron (33, Tampa) last week to 26 years in federal prison for conspiracy to commit wire fraud, wire fraud affecting a financial institution, and making false statements to a financial institution. Lebron was also ordered to serve a 5-year term of supervised release, following his release from prison. As part of his sentence, the court also entered a money judgment in the amount of $1,469,300. Lebron was found guilty on October 19, 2012, following a three-week jury trial.
According to testimony and court documents, Lebron was a Florida-licensed realtor and worked as a loan officer. Taking advantage of the downturn in the real estate market, Lebron participated in mortgage foreclosure rescue fraud and short sale fraud, which is sometimes called “flopping” a house.
As part of the scheme, Lebron had hand drawn signs placed on the side of the roads, usually in low income neighborhoods. These signs often advertised the sale of nonexistent houses. The purpose of the signs was to generate leads, to prey upon unsophisticated people, particularly those losing their houses in foreclosure.
Working with another Florida-licensed real estate agent, Lebron opened up a company, called EZ Investments. During their first deal, they used a victim whose house was falling into foreclosure. Lebron arranged for a straw purchaser - his sister - to buy the house in a non-arm’s length transaction. That is, Lebron controlled both ends of the deal. Lebron also served as the loan officer, thus receiving the mortgage broker’s commission, although another loan officer’s name was placed on the paperwork to conceal what Lebron had done. Lebron also took the check that represented the proceeds of the sale of the home from the distressed home owner without her knowledge.
After the straw purchaser “bought” the house, Lebron paid the original mortgage for a short time to prevent the victim from detecting the fraud. He then arranged a short sale of the house to his brother-in-law, in another non-arm’s length transaction. Six days later, using simultaneously recorded deeds, the property was resold to a “credit partner,” that is, another straw purchaser, who Lebron had arranged to buy the house before the short sale proposal was submitted to the bank. This straw purchaser, essentially unemployed, was added on to bank accounts under the control of the conspirators to make it appear that he had assets. The down payment for the transaction was funded through those bank accounts. Fake pay stubs were created to give the appearance that the buyer had an income to support the loan.
In these deals, the conspirators pocketed the money that should have gone to the original distressed home owner. They also received the mortgage broker commission for arranging the first straw purchaser's loan and other commissions and fees, and got the difference between the short sale amount and the new loan. The straw purchasers were each paid $5,000 for their role in the scheme. In addition, Lebron acquired four other loans through fraud.
During the course of the conspiracy, Lebron used stolen and false identities; fraudulently verified his own employment claiming jobs he never had; and, for at least one of the properties, bought it as his primary residence when he legally could not move into it. Lebron committed these crimes while on pretrial release and while on probation.
"This case is particularly disturbing on several fronts," stated John Joyce, Special Agent in Charge, United States Secret Service - Tampa Field Office. "Mr. Lebron and his cohorts knowingly took advantage of homeowners who were in financial distress in order to advance their own financial well being. Mr. Lebron had the audacity to commit these fraudulent acts while on probation and he also defaulted on $1.4 million in loans. He will soon understand that 26 years is a stiff price to be paid for his actions.”
This case was investigated by U.S. Secret Service. It was prosecuted by Assistant United States Attorney Thomas N. Palermo.
Florida Man Nets Federal Prison for Felony Election OffenseRead the Press Release
Jay Odom, 56, of Destin, Fla., was sentenced today by Senior U.S. District Judge Lacey A. Collier to six months in federal prison for his conviction on one count of causing a presidential campaign committee to make a false statement to the Federal Election Commission (FEC). Additionally, Judge Collier ordered Odom to pay a fine of $46,000 and a Special Monetary Assessment of $100 for the felony conviction. The sentencing was announced this afternoon by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Robert O. Davis, Acting U.S. Attorney for the Northern District of Florida.
According to court documents, in approximately December 2007, Odom directly and indirectly solicited employees of his business entities and their family members to each make the maximum allowable contributions to the authorized campaign committee of a presidential candidate. The employees were encouraged to make these donations with the understanding that Odom would advance funds to or reimburse these individuals for their contributions. During his guilty plea on February 12, 2013, Odom admitted to both knowing that this activity was illegal and intending to conceal the true source and amount of the campaign contributions.
In 2007, Odom directly or indirectly used personal funds to reimburse individual contributions to the authorized campaign committee of the presidential candidate for a total of $23,000. As a result of this scheme, Odom intentionally caused the presidential candidate’s authorized campaign committee to file a report with the FEC that falsely stated that 10 individual donors had made federal campaign contributions when in fact each contribution was made by Odom.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Randall J. Hensel and Trial Attorney Brian K. Kidd of the Criminal Division’s Public Integrity Section.
Five Shelby County Residents Indicted in Drug ConspiracyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – Five Shelby County, Texans residents have been arrested in connection with a drug trafficking conspiracy in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
A 13-count indictment was returned by a federal grand jury on Apr. 17, 2013 charging the following individuals with federal gun and drug crimes:
Lakeva Shillette Hill, a/k/a Sugar Momma, 35;
Lester Earl Pitts, 48;
Vincent Jermaine Lathan, a/k/a Reed Cartwright, 36;
Cornelius Vansharles Gray, 36; and
Anthony Gene Chumbley, 46.The indictment alleges that beginning in May 2010, Hill, Pitts, Lathan and Gray were involved in a conspiracy to distribute marijuana and crack cocaine in East Texas. Hill, Pitts and Gray are also charged with conspiracy to possess a firearm in furtherance of a drug trafficking crime and possession of a firearm during a drug trafficking crime. Pitts is charged with three counts of providing a firearm to a drug trafficker and three counts of providing a firearm to a convicted felon. Hill and Chumbley are charged with being a felon in possession of a firearm.
The defendants were arrested on Apr. 18, 2013 and made initial appearances before U.S. Magistrate Judge Keith Giblin on Apr. 22, 2013.
If convicted of the drug conspiracy charge, the defendants each face up to life in federal prison. The firearms conspiracy charge carries a maximum penalty of 20 years in federal prison. The firearms possession charges carry a penalty of a minimum of five years in prison. For providing a firearm to a drug dealer or a convicted felon, the defendant faces up to 10 years for each charge. For being a felon in possession of a firearm, the defendants each face a minimum of 15 years in federal prison.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Texas Department of Public Safety, and the Center Police Department and prosecuted by Assistant U.S. Attorney John B. Ross.
A grand jury indictment is not evidence of guilt and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Final Members of Outlaw Motorcycle Gang Sentenced on Racketeering Conspiracy ChargesRead the Press Release
St. Louis, MO - ANTHONY ROBINSON, a/k/a “Blade,” formerly of, Chicago, was sentenced today to two terms of imprisonment of life without the possibility of parole by Chief United States District Judge Catherine D. Perry in St. Louis. Robinson was one of seven defendants convicted by a jury in December 2012 of Racketeering Conspiracy and other crimes. Also sentenced today was Jerry L. Peteet, a/k/a “Angel,” once a well-known criminal defense attorney in Gary, Indiana. Peteet was sentenced to a term of 276 months in prison. Robinson, Peteet and 22 other defendants were indicted as part of a vast federal investigation into the Wheels of Soul Outlaw Motorcycle Club, a nationwide organization based in Philadelphia, Pennsylvania. The Wheels of Soul claim to be the largest mixed-race “outlaw” motorcycle club in the United States, with more than 400 members and chapters in at least 25 states nationwide.
The investigation into the Wheels of Soul began in St. Louis in 2009 and was undertaken by the Federal Bureau of Investigation, St. Louis Field Division. In August 2009, St. Louis chapter President Dominic Henley, a/k/a “Bishop” and Timothy Balle, a/k/a “T” committed an armed robbery in which they stole the motorcycle club “colors” of two local St. Louis residents. Days later, Henley and Balle were involved in an altercation at the clubhouse of another local St. Louis motorcycle club, during which they shot and killed a member of the Sin City Titans. Henley and Balle were sentenced last week to 204 and 96 months in prison, respectively. When sentencing Dominic Henley, the judge told him that he was responsible for the Sin City Titan member's death.
The St. Louis chapter of the Wheels of Soul was part of the Mid-West Region of the organization, which included chapters in Indiana, Kentucky, Ohio, Wisconsin, Minnesota and Illinois. At one time, the Wheels of Soul maintained two chapters in the Chicago area - the Westside Chapter located at 16th and Keeler, and the Southside Chapter located in the 7400 block of Racine. Given the scale of the investigation, the FBI St. Louis contacted law enforcement partners in Chicago, and learned that the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Chicago Police Department had also begun an investigation of the Wheels of Soul. The CPD and ATF immediately agreed to join their investigation with the parallel one in St. Louis.
On June 9, 2011, a Grand Jury sitting in the Eastern District of Missouri returned a federal indictment charging Robinson and others with Racketeering Conspiracy and other federal crimes, including Violent Crime in Aid of Racketeering - Murder. Robinson was arrested at his home in Chicago on July 12, 2011.Most of the indicted members of the Wheels of Soul pled guilty, admitting their involvement in the Racketeering Conspiracy. Some also admitted to having committed violent crimes in furtherance of the conspiracy. Other defendants proceeded to trial in October 2012. The trial lasted roughly 35 days and involved more than 60 witnesses. The jury deliberated for eight days before returning guilty verdicts on all seven remaining defendants.
"The collective effort of law enforcement, corrections and prosecutors in seven states, reflects that justice has no tolerance for violent gangs and that this gang's very existence fuels sheer violence in the community. ATF will continue to target violent gangs that are responsible for gun violence in our cities." -- Larry Ford Special Agent in Charge, Chicago Field Division.
Federal and state law enforcement agencies across the country lent their assistance to the investigation of the Wheels of Soul. The Office of the United States Attorney for the Eastern District of Missouri extends its appreciation to the following for their invaluable contributions:
- Federal Bureau of Investigations - St. Louis Field Division
- Bureau of Alcohol, Tobacco, Firearms, and Explosives - Chicago Field Division
- Chicago Police Department
- St. Louis Metropolitan Police Department
- St. Louis County Police Department
- Marion (Ohio) Police Department
- Gary (Indiana) Police Department
- United States Marshals Service
- Federal Bureau of Investigations - Philadelphia Field Division
- Bureau of Alcohol, Tobacco, Firearms, and Explosives - Philadelphia, Pennsylvania
- Bureau of Alcohol, Tobacco, Firearms, and Explosives - Denver, Colorado
- Bureau of Alcohol, Tobacco, Firearms, and Explosives - Louisville, Kentucky
- Bureau of Alcohol, Tobacco, Firearms, and Explosives - Youngstown/Columbus, Ohio
- Bureau of Alcohol, Tobacco, Firearms, and Explosives - Sacramento, California
- Federal Bureau of Prisons
- Office of the State’s Attorney for Cook County, Illinois
- Indianapolis Police Department
- Columbus (Ohio) Police Department
- Office of the State’s Attorney for LaPorte County, Indiana
and the Offices of the United States Attorneys for the following Districts:
- Northern Illinois
- Eastern Pennsylvania
- Northern Ohio
- Northern Indiana
- Eastern Wisconsin
- Western Kentucky
- Colorado
Federal Judge Sentences Two Men in Cocaine ConspiracyRead the Press Release
McALLEN, Texas - Poteet resident Jonathan Pena and Victor Reyes-Campos, of Mexico City, Mexico, have been sentenced to federal prison for conspiracy to possess with the intent to distribute multi-kilogram amounts of cocaine, United States Attorney Kenneth Magidson announced today.
Jonathan Pena, 28, and Reyes-Campos, 34, of Mexico City, Mexico, entered guilty pleas on April 2, 2012, and Sept. 17, 2012, respectively.
Today, U.S. District Judge Randy Crane handed Pena a 121-month sentence, while Reyes was ordered to serve 210 months in the U.S. Bureau of Prisons.From December 2008 to January of 2010, Pena and Reyes were members of a drug trafficking and money laundering conspiracy which was responsible for transporting thousands of kilograms of cocaine from the Rio Grande Valley area to Georgia. During the investigation, agents were able to seize hundreds of kilograms of cocaine and millions of dollars in drug proceeds.
The investigation leading to the charges was conducted by the Drug Enforcement Administration. Assistant United States Attorney James Sturgis prosecuted the case.
Federal Court Issues Permanent Injunction Prohibiting Los Angeles Tax Service and Its Owner from Preparing Federal Tax ReturnsRead the Press Release
LOS ANGELES – A federal judge has permanently barred Yonny Torres, who does business under the name Yonny’s Income Tax in downtown Los Angeles, from preparing federal tax returns, the Justice Department announced today.
The civil injunction, which was filed last Thursday by United States District Judge Stephen V. Wilson, determined that Torres engaged in “dishonest conduct” when he prepared federal income tax returns that contained false information that increased his clients’ earned income credit (EIC) so that their tax refunds would be fraudulently inflated.
“This overall scheme spanned over multiple years, comprised thousands of instances of noncompliance, and accumulated losses to the government estimated as high as $6.5 million,” Judge Wilson wrote in his order.
Torres was sued by the United States on December 10, 2012. The permanent injunction was issued last week along with a default judgement in the lawsuit.
Two years ago, Torres was assessed a $52,000 penalty for failing to perform due diligence on clients tax returns.
Release No. 13-057
Fort McDowell Yavapai Man Sentenced to Federal Prison for Sexual AbuseRead the Press Release
PHOENIX --- On April 22, 2013, Arthur Victor Smith, 20, of Peach Springs, Ariz., was sentenced by U.S. District Judge G. Murray Snow to 140 months imprisonment, followed by lifetime supervised release. Smith, a Fort McDowell Yavapai Nation member, pleaded guilty on Feb. 5, 2013, to sexual abuse.
Smith was charged by indictment with one count of aggravated sexual abuse of a minor pursuant to 18 U.S.C. § 2241(c). According to the plea agreement, the defendant sexually abused a minor female, age 14, and the sexual abuse occurred on the Hualapai Nation Indian Reservation.
The investigation in this case was conducted by the Hualapai Nation Police Department and the Federal Bureau of Investigation. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-11-8189-PCT-GMS
RELEASE NUMBER: 2013-032_SmithFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Destin Man Nets Federal Prison for Felony Election OffenseRead the Press Release
PENSACOLA, FLORIDA – Jay Odom, 56, of Destin, was sentenced today by Senior U.S. District Judge Lacey A. Collier to six months in federal prison for his conviction on one count of causing a presidential campaign committee to make a false statement to the Federal Election Commission (FEC). Additionally, Judge Collier ordered Odom to pay a fine of $46,000 and a Special Monetary Assessment of $100 for the felony conviction. The sentencing was announced this afternoon by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Robert O. Davis, Acting United States Attorney for the Northern District of Florida.
According to court documents, in approximately December 2007, Odom directly and indirectly solicited employees of his business entities and their family members to each make the maximum allowable contributions to the authorized campaign committee of a presidential candidate. The employees were encouraged to make these donations with the understanding that Odom would advance funds to or reimburse these individuals for their contributions. During his guilty plea on February 12, 2013, Odom admitted to both knowing that this activity was illegal and intending to conceal the true source and amount of the campaign contributions.
In 2007, Odom directly or indirectly used personal funds to reimburse individual contributions to the authorized campaign committee of the presidential candidate for a total of $23,000. As a result of this scheme, Odom intentionally caused the presidential candidate’s authorized campaign committee to file a report with the FEC that falsely stated that 10 individual donors had made federal campaign contributions when in fact each contribution was made by Odom.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Randall J. Hensel and Trial Attorney Brian K. Kidd of the Criminal Division’s Public Integrity Section.
Defendant Charged in White Plains Federal Court with Bank Fraud and Stealing Nearly Half A Million Dollars from the IRSRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Toni Weirauch, the Special Agent-in-Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), today announced the arrest of MELANIE FERREIRA for engaging in a series of frauds, which included cheating the Internal Revenue Service (“IRS”) out of nearly half a million dollars, and perpetrating a bank fraud scheme. FERREIRA was arrested by FBI and IRS agents this morning at her residence in Dutchess County, New York, and was presented this afternoon before U.S. Magistrate Judge Lisa M. Smith in White Plains federal court.
U.S. Attorney Preet Bharara said: “As alleged, Melanie Ferreira thumbed her nose at the IRS, stealing hundreds of thousands of dollars in refunds to which she was not entitled, and forged a check to satisfy a debt. We enjoy many rights and privileges in this country but not among them is the right to enjoy the fruits of law-abiding taxpayers’ money while evading the tax laws and defrauding the government and thereby your fellow citizens.”
FBI Assistant Director-in-Charge George Venizelos said: “As alleged, the defendant committed tax fraud that was as unsophisticated as it was audacious. She simply lied about the amount of taxes already paid in 2008. The method of Ferreira’s alleged bank fraud may be tied to her questioning the legitimacy of the government. Regardless, she apparently had no qualms stealing from the treasury.”
IRS-CI Special Agent-in-Charge Toni Weirauch said: “The privilege of living in the United States carries certain responsibilities, one of which is that one must pay his or her fair share of taxes. Filing a false claim with the IRS is stealing, not only from the U.S. Treasury, but from all law-abiding taxpayers. Whether through claiming fictitious deductions, exemptions or withholding amounts, the charge is serious, and so are the consequences.”
According to the allegations in the Complaint unsealed today in White Plains federal
court:
On October 15, 2009, FERREIRA filed a U.S. Individual Income Tax Return, Form 1040, for the year 2008 (“2008 Return”). In her 2008 Return, she falsely reported interest income of $661,600 from three different banks. She then falsely claimed that she had paid taxes in the amount of $661,536 to the IRS for Tax Year 2008. On that basis, she claimed a refund of $440,924. In reality, she actually earned only $17 in interest income from those three banks. Furthermore, contrary to her claim on her 2008 Return that she had already paid $661,536 in federal taxes, she actually paid only $236.
On October 23, 2009, the IRS wired $440,924 to FERREIRA’s bank account.
The following spring, on April 15, 2010, FERREIRA tried to carry out the same type of scheme when she filed her Form 1040 for the year 2009, but this time, the IRS rejected her refund request.
In addition, FERREIRA also perpetrated a bank fraud scheme against the Bank of America (“BOA”), which was the bank that held the mortgage for her house in Dutchess County, New York (“House 1”). In May 2010, she caused a forged cashier’s check for $316,966.05, purporting to be drawn on the Federal Reserve Bank of Cleveland, Ohio (“Check 1”), to be sent to BOA in satisfaction of the mortgage on House 1. Believing that Check 1 was legitimate, BOA filed a satisfaction of mortgage with the Dutchess County Clerk’s Office. BOA subsequently determined that Check 1 was fraudulent and filed suit in New York State Supreme Court in order to have the mortgage reinstated.
Similarly, on June 2, 2012, FERREIRA sent a check in the amount of $305,000 (“Check 2”) to BOA, purporting to pay off the balance of her mortgage from BOA on House 1. When BOA tried to negotiate Check 2, it was returned since the originating bank account had been closed. On the memo line of Check 2, FERREIRA wrote, in red ink, “FOR DISCHARGE OF DEBT EFT ONLY.” On the back of the check, she wrote several lines in a different color of ink, including the following: “NOT FOR DEPOSIT; EFT ONLY; FOR DISCHARGE OF DEBT.”
FERREIRA’s scheme – sometimes known as an electronic funds transfer or “EFT” scheme – is a scheme often used by adherents to the Sovereign Citizens Movement, a group comprised of individuals who, although they reside in the United States, assert the position that they do not have to answer to any government authority, including courts, taxing entities, motor vehicle departments or law enforcement.
FERREIRA, 60, of Lagrangeville, New York, is charged with one count of wire fraud, one count of filing false claims with the IRS, and one count of bank fraud. She faces a maximum sentence of 55 years in prison and a maximum fine of $1,000,000, or twice the gross gain or gross loss from the offense.
Mr. Bharara praised the outstanding investigative work of the FBI and the IRS.
This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorney Jason P.W. Halperin is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Melanie Ferreira Complaint
Dallas-Area Lawyer Pleads Guilty to Felony Offense of Covering up Bank FraudRead the Press Release
DALLAS — Jerry Goh, 50, a resident of Allen, Texas, appeared in federal court this morning before U.S. Magistrate Judge Irma C. Ramirez and pleaded guilty to a superseding information charging him with one count of misprision of a felony, stemming from his involvement in a loan fraud scheme in 2007. Goh, a lawyer with offices in the Dallas-Fort Worth metroplex, faces a maximum statutory penalty of three years in federal prison, a $250,000 fine and restitution. Sentencing is set for August 12, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Two defendants also charged in the case, Plano, Texas, residents Vathany Theng and Lina Ma, have pleaded guilty to their roles in the fraud and are awaiting sentencing. According to documents filed in the case, Goh, acting in his capacity as the escrow officer on the loan, and thus with control of the loan proceeds, concealed from the lender, Prosper Bank, the fraudulent release of $498,720 of loan proceeds to provide funds for a $431,000 down payment. Goh wired $498,720 of lender Prosper Bank’s funds from an escrow account, knowing that these seller proceeds funds would later be used as the source of borrower Lina Ma’s down payment on her loan from Prosper Bank.
This case was prosecuted 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. Attorney’s 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 http://www.stopfraud.gov/.
The case was investigated by the U.S. Small Business Administration – Office of the Inspector General and the FBI. Assistant U.S. Attorney David L. Jarvis is in charge of the prosecution.
Citizen of Jamaica Sentenced to Two Years in Prison for Illegally Reentering the U.S. After DeportationRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that HAROLD ANTHONY SOLTAU, 43, a citizen of Jamaica last residing in Bridgeport, was sentenced today by Senior United States District Judge Alfred V. Covello in Hartford to 24 months of imprisonment for illegally reentering the United States after being deported.
According to court documents and statements made in court, SOLTAU was deported from the United States to Jamaica in June 1990 after he was convicted of a felony drug trafficking offense. He subsequently reentered the United States without first obtaining the consent of the Attorney General of the United States or his successor, the Secretary for the Department of Homeland Security, to reapply for admission into the United States.
SOLTAU has been detained since his arrest on July 31, 2012. On January 29, 2013, he pleaded guilty to one count of illegal reentry of a removed alien.
This case was investigated by U.S. Immigration and Customs Enforcement and was prosecuted by Assistant United States Attorney Felice M. Duffy.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Cherry Creek Man Convicted for Assaulting, Resisting or Impeding A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that Kaleb Earl Hollow Horn, age 25, of Cherry Creek, South Dakota appeared before U.S. District Judge Roberto A. Lange on April 16, 2013 and pled guilty to the Superseding Information that charged him with Assaulting, Resisting or Impeding a Federal Officer. The maximum penalty upon conviction is 8 years of custody, a $250,000 fine, or both; a $100 assessment; and restitution.
The conviction is the result of an incident that occurred in February 2012 when Hollow Horn assaulted, resisted or impeded a Cheyenne River Sioux Tribe police officer.
The investigation was conducted by the Cheyenne River Sioux Tribal Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Mikal Hanson.
A presentence investigation was ordered, and a sentencing date was set for July 8, 2013. Hollow Horn will report to the U.S. Marshals Service on June 3, 2013.
California Woman Pleads Guilty to Feeding Whales in Marine SanctuaryRead the Press Release
A California woman pleaded guilty to illegally feeding killer whales in the wild this Tuesday in federal court in San Jose, Calif., the Department of Justice Environment and Natural Resources Division and the U.S. Attorney’s Office for the Northern District of California announced.
Nancy Black of Monterey, Calif. pleaded guilty to one count of violating the Marine Mammal Protection Act (MMPA), specifically the MMPA’s feeding prohibition. The MMPA regulations make it a crime to feed marine mammals in the wild. The prohibition applies to commercial and recreational boaters, and applies to all species of marine mammals.
Killer whales (orcas) prey on gray whales in the Monterey Bay National Marine Sanctuary. On the occasions when orcas manage to kill a gray whale, the pod of orcas does not always eat all of the gray whale at once. Often, portions of the carcass, including strips and chunks of blubber (some over six feet in length and weighing over a hundred pounds), remain floating or semi-submerged after a kill. Orcas and sea birds feed on these chunks of blubber while they are still available in the area.
According to the factual basis of the plea agreement, on or about April 25, 2004, Black was on her boat in the Monterey Bay National Marine Sanctuary, when she and her assistants encountered a place where orcas had killed a gray whale calf. She was observing the orcas as they fed on pieces of gray whale blubber that were floating in the water. In an effort to facilitate their viewing, she or her crew grabbed the blubber, cut a hole through the corner of the blubber chunk, and ran a rope through the piece of the blubber. Shortly thereafter, they returned the blubber to the water and monitored the feeding behavior of the orcas as they ate the blubber off of the rope. Black and her crew repeated the process with the rope and other pieces of the blubber. In court papers, Black admitted that she did not have a permit that would have allowed her to engage in this conduct. She also admitted that on or about April 11, 2005, she was involved in a similar incident involving the collection of floating blubber and offering it to orcas utilizing the same rope method.
In a separate incident on or about Oct. 24, 2005, Nancy Black met with a sanctuary officer and a National Oceanic and Atmospheric Administration (NOAA) investigative agent at their offices in Monterey. The sanctuary officer was investigating a reported harassment of an endangered humpback whale earlier that month in the Monterey Bay National Marine Sanctuary. The interaction with the humpback whale was filmed by one of Black’s crewmembers. Before Oct. 24, the sanctuary officer had previously asked Black to provide the videotape of the humpback whale encounter.
Black voluntarily agreed to provide the videotape, but prior to doing so she edited the video footage to remove several minutes that included footage of the humpback whale between two vessels that belonged to Black’s whale watching business, among other footage, and sounds. Black did not tell the officer that she had edited the tape. In filed court papers, Black admitted that by not disclosing the editing of the video, she could have impeded or influenced NOAA's investigation into the humpback whale incident.
Sentencing in the case is set for Aug. 6, 2013.
The case was investigated by agents of the National Oceanic and Atmospheric Administration and the FBI with support from enforcement personnel from the Monterey Bay National Marine Sanctuary. The case was prosecuted by Christopher L. Hale of the Justice Department’s Environmental Crimes Section, Environment and Natural Resources Division, and Jeffrey Schenk of the U.S. Attorney’s Office in San Jose, California.
Related Materials:
Plea Agreement
Broward County Return Preparer Sentenced for Tax Fraud Scheme and Failing to File Personal Tax ReturnsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), announced today’s sentencing of defendant Vladimyr Jean Baptiste, 41, of Coral Springs, Florida. Baptiste was sentenced to 57 months in prison, to be followed by 3 years of supervised release. The defendant was also ordered to pay $331,459.49 in restitution to the Internal Revenue Service.
Baptiste previously pled guilty to a 76-count superseding indictment that charged him with 73 counts of aiding in the preparation and presentation to the Internal Revenue Service of false U.S. Individual Income Tax Returns, Forms 1040 and 1040A, for calendar years 2007 through 2010, in violation of Title 26, U.S.C., Section 7206(2); and three counts of failing to file personal income tax returns for calendar years 2008 through 2010, in violation of Title 26, U.S.C., Section 7203.
According to court documents, Baptiste operated Tax Plus in Pompano Beach, Florida and filed numerous false income tax returns for clients. These false returns claimed fraudulent statuses, wages, deductions, credits and expenses. Specifically, Baptiste admitted to: inflating earned income credits; encouraging clients to file separately with each individual claiming head of household although married, thereby obtaining additional tax credits; and giving various clients a fictitious $3,650 personal tax exemption for returns and allowances to lower their taxes. Baptiste also admitted that he has not filed his personal tax returns for the past five years.
Mr. Ferrer commended the investigative efforts of IRS-CID. The case is being prosecuted by Assistant U.S. Attorney Michael Walleisa.
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.
Birmingham Man Sentenced to 20 Years in Prison for Ensley Pharmacy Armed RobberyRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Birmingham man to 20 years and one month in prison for a 2011 armed robbery of an Ensley pharmacy, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
U.S. District Judge Abdul K. Kallon sentenced WILLIE EDWARDS, 39, for robbing Moore’s Pharmacy on Ensley Avenue in Birmingham on July 30, 2011, and brandishing a gun during the robbery. Edwards pleaded guilty in January to the armed robbery involving controlled substances charge and to the charge of brandishing a gun during a crime of violence. The brandishing charge carries a mandatory seven-year prison sentence that must be served consecutively to any other sentence imposed for the crime.
“This defendant, and the co-defendants in this case, all endangered innocent people in their violent quest to steal one of the most commonly abused prescription substances in our communities -- hydrocodone,” Vance said. This type of violent criminal must be taken off the streets.”
Edwards was charged in the armed robbery along with ANTHONY YOUNG, 21, of Hueytown. Young’s case has been continued.
According to court documents, Edwards entered Moore’s Pharmacy with the other robber and ordered employees to lie down on the floor after a gun was brandished. Edwards and his accomplice took pills and cough syrup containing hydrocodone, a narcotic pain killer.
Edwards and Young were indicted in November, along with Edwards’ cousin, STERLING EDWARDS, 20, also of Birmingham. Sterling Edwards pleaded guilty in February to the Oct. 13, 2011, armed robbery of Campbell’s Pharmacy in Adamsville, and the March 13, 2012, armed robbery of Helena Hometown Pharmacy in Helena. Controlled substances were taken and guns were used in both robberies. Sterling Edwards pleaded guilty to brandishing a gun in the Helena robbery.
Sterling Edwards is scheduled for sentencing May 30.
The FBI and Birmingham Police Department investigated the case. Assistant U.S. Attorney Joseph P. Montminy and Robin B. Mark are prosecuting the case.
Baltimore Man Exiled to over 11 Years in Prison on Drug ChargesRead the Press Release
Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Tracey Betters, age 21, of Baltimore, Maryland, today to 135 months in prison followed by five years of supervised release for conspiracy to possess with the intent to distribute five kilograms or more of cocaine.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Baltimore City State’s Attorney Gregg L. Bernstein; Commissioner Anthony W. Batts of the Baltimore Police Department; and Maryland Attorney General Douglas F. Gansler.
According to their plea agreements, in May 2012, Tracey Betters, his brother Blake Betters, and Brandon Harris, were introduced to an undercover Bureau of Alcohol, Tobacco and Firearms (ATF) agent who proposed robbing a large scale drug trafficker of multiple kilograms of narcotics. The Betters brothers and Harris agreed to commit the robbery and to resell the stolen narcotics to customers in the Baltimore area.
On June 14, 2012, Tracey and Blake Betters, Harris and three co-conspirators met with the undercover agent to make their final preparations to commit the robbery. Tracey and Blake Betters, Harris and their co-conspirators were armed, and they all expected the weapons to be used to commit the robbery. After confirming that they were ready to rob the stash house, the Betters’, Harris and their co-conspirators followed the agent to a location in Baltimore where they believed they would be given the location of the robbery. En route to the final meeting location, Tracey Betters and his co-conspirators discussed their willingness to kill the stash house guards as well as the undercover agent, who they planned to rob of his share of the stolen cocaine. As the arrest team approached, the Betters and Harris fled, but were quickly apprehended and arrested.
Co-defendants Blake Betters, age 23, and Brandon Harris, age 22, both of Baltimore were each previously sentenced to 10 years in prison for their roles in the conspiracy.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorneys Clinton J. Fuchs and Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, who prosecuted the case.
Andover Business Owner Is Charged with ObstructionRead the Press Release
BOSTON – An Andover man was charged in an Information with obstructing a grand jury investigation by altering and deleting documents from his computer.
Kamlesh Patel, 48, was charged with obstruction by destruction and alteration of documents in connection with a grand jury investigation.
The Information alleges that Patel received a grand jury subpoena for records relating to his business dealings with another company and relating to claims that the other company was a service-disabled, veteran-owned and operated business. Allegedly, Patel was aware that he had documents on his computer that were responsive to the subpoena and that were relevant to the pending investigation. Patel nonetheless deleted documents on his computer that were responsive to the grand jury subpoena.
The statutory maximum sentence for the charge is 20 years in prison, followed by three years of supervised release and a fine of $250,000 or twice the gross gain or loss from the crime, whichever is greater. In the event of a conviction, any actual sentence will be determined by the assigned federal judge.
United States Attorney Carmen M. Ortiz; Jeffrey Hughes, Special Agent in Charge
of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Division; Luis Hernandez, Special Agent in Charge of the General Services Administration, Office of Inspector General, Office of Investigations, New England Regional Office; Michael D. Conner, Special Agent in Charge of the U.S. Army Criminal Investigation Command, Boston Fraud Branch Office; Aaron Collins, Special Agent in Charge of the Small Business Administration, Office of Inspector General, Regional Office; Robert Panella, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering & Fraud Investigations, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Sara Miron Bloom and William Bloomer of Ortiz’s Office.The details contained in the Information are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Additional Charges Filed in Murder-For-Hire CaseRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that more charges were filed today against two men accused of participating in a murder-for-hire scheme.
According to United States Attorney Peter J. Smith, a federal grand jury returned separate superseding indictments against Edward McLaughlin, of Florida and Gary Williams, of Scranton, related to an alleged conspiracy to murder McLaughlin’s ex-wife.
One superseding indictment charges McLaughlin with conspiracy to commit a murder-for-hire; two counts of solicitation to commit a crime of violence; possessing a firearm in furtherance of a crime of violence; unlawfully shipping a firearm and ammunition as a convicted felon; unlawfully transferring a firearm to be used in a violent crime; unlawfully shipping a firearm to commit a felony offense; and unlawfully transporting a firearm in interstate commerce.
The second indictment charges Williams with conspiracy to commit a murder-for-hire; possessing a firearm in furtherance of a violent crime; receiving a firearm with the intent to commit a felony offense; unlawfully possessing a firearm as a convicted felon; and attempting to tamper with a witness.
McLaughlin was originally indicted in July 2012. The charges resulted from an investigation by the Federal Bureau of Investigation and the Scranton Police Department. The cases are assigned to Senior U.S. District Judge A. Richard Caputo who ordered that the defendants be charged separately.The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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 these particular cases, both defendants face a mandatory minimum of five years imprisonment. The maximum penalty under the federal statute is life 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.
Abingdon Residents Sentenced to Fourteen Years Imprisonment for Manufacturing MethamphetamineRead the Press Release
ABINGDON, VIRGINIA -- United States Attorney Timothy J. Heaphy announced today that Travis Dewayne Crasten a/k/a “Tater”, age 31, and Jessica Michelle Morefield, age 26, both of Abingdon, Va., were sentenced in the United States District Court for the Western District of Virginia in Abingdon to serve fourteen years in prison for their involvement in the manufacture of methamphetamine.
Following their convictions by a jury on October 17, 2012, Crasten and Morefield were each ordered to serve 168 months imprisonment and serve eight years supervised release for one count of conspiracy to manufacture 50 grams or more of methamphetamine, one count of manufacturing methamphetamine, one count of maintaining a place for the purpose of manufacturing methamphetamine, and one count of purchasing pseudoephedrine for the purpose of manufacturing methamphetamine. Previously, co-defendant Timothy Doss was sentenced to 10 years imprisonment and co-defendant Kelli Nicole Harris was sentenced to 51 months imprisonment following their guilty pleas to one count of conspiracy to manufacture 50 grams or more of methamphetamine.
According to evidence presented at trial and other hearing by Assistant United States Attorney Zachary T. Lee, Drug Enforcement Administration agents began investigating large quantities of pseudoephedrine being purchased by Crasten, Moorefield, Doss, and Long in Abingdon, Bristol, Virginia, and Bristol, Tennessee, beginning in November 2011 and continuing through February 2012. On February 23, 2012, agents with the Drug Enforcement Administration, Washington County Sheriff’s Office, Abingdon Police Department and Virginia State Police executed a search warrant at Crasten and Moorefield’s residence on Sugarbush Lane in Abingdon, Virginia. Agents found Crasten, Moorefield, Doss and Long in the residence, a red phosphoreus methamphetamine lab, and approximately nine grams of methamphetamine.
The investigation of this case was conducted by the Drug Enforcement Administration, Washington County Sheriff’s Office, Abingdon Police Department and Virginia State Police. Assistant United States Attorney Zachary T. Lee of the United States Attorney’s Office in Abingdon prosecuted the case.2012 Martin Luther King Park Murder of One Person, Wounding of Four Attributed to Alleged Bailey Boys Gang MemberRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Buffalo has charged Tariq Brown, 20, with the May 12, 2012 shooting at Martin Luther King Park that left Marquay Lee dead and four other individuals wounded. Two of the injured persons suffered permanent injuries, one victim is now a paraplegic and another was blinded in one eye.
According to Assistant U.S. Attorney Anthony M. Bruce, who is handling the prosecution of this case, the charges are contained in a fourth superseding indictment in the ongoing investigation into the Bailey Boys, a violent criminal gang operating on Buffalo's East Side. Brown is alleged to be a member of the Bailey Boys Gang which operates in an area of the City bounded by Winspear Avenue, the Kensington Expressway, Eggert Road and Main Street. Defendant Brown already stands accused of three other attempted murders which injured two people.
Today's charges carry a mandatory sentence of life in prison with the possibility of the death penalty.
Based on this latest superseding indictment, Bailey Boys members now stand accused four murders, 14 attempted murders, including four drive-by shootings. The attempted murders include a shooting that occurred during a neighborhood party with numerous children present and a shooting that occurred during a robbery. To date, two defendants have been convicted.
U.S. Attorney William J. Hochul, Jr., stated that “The fact that these violent events occurred in a park named after one of our most prominent advocates of peace and non violence should certainly not be lost on the public. Keeping in mind Dr. King's belief once warned that 'Our lives begin to end the day we become silent about things that matter', this office will continue to prosecute those who commit violence upon the streets of our community."
"Since the night of this incident, the Buffalo Division Safe Streets Task Force (SSTF) has worked tirelessly with our law enforcement partners to identify and bring to justice the person responsible for this extremely violent act," said FBI Acting Special Agent in Charge Richard M. Frankel. "Through the collaborative efforts of our law enforcement partners the Buffalo Division/SSTF remains committed to dismantling the most violent street gangs operating in Western New York."
"This has been an intense investigation from day one that has culminated with a dangerous person now off our streets," said Buffalo Police Commissioner Daniel Derenda. "For nearly a year, Buffalo Police have worked hand in hand with the U.S. Attorney's Office and the FBI to bring this individual to justice. I want to thank the public for all of the help they provided in solving this case."The superseding indictment is the result of an ongoing investigation on the part of the United States Attorney’s Office in close cooperation with the Erie County District Attorney’s Office, under the direction of District Attorney Frank A. Sedita, III, the Buffalo Police Department, under direction of Police Commissioner Daniel Derenda, the Federal Bureau of Investigation’s Safe Streets Task Force, under the Direction of Acting Special Agent in Charge Richard M. Frankel, the Erie County Sheriff’s Office, under the direction of Sheriff Timothy B. Howard, the Drug Enforcement Administration, under the direction of Special Agent in Charge Brian R. Crowell, New York Field Division, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Resident Agent in Charge Frank Christiano. The Safe Streets Task Force includes members of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the Buffalo Police Department, the Amherst Police Department, under the direction of Chief John Askey, the Cheektowaga Police Department, under the direction of Chief David Zack, the Hamburg Police Department, under the direction of Chief Michael Williams, the Niagara Frontier Transportation Authority Police, under the direction of Chief George Gast, the Erie County Sheriff’s Department, the New York State Police, under the direction of Major Matthew Renneman, the New York State Department of Corrections and Community Supervision, under the direction of Commissioner Brian Fischer.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
13 Correctional Officers among 25 Alleged BGF Gang Members and Associates Indicted on Federal Racketeering ChargesRead the Press Release
Baltimore, Maryland - A federal grand jury returned a racketeering indictment charging 25 individuals, including 13 correctional officers with the Maryland Department of Public Safety and Correctional Services, for conspiring to run operations of the Black Guerilla Family (BGF) gang inside correctional facilities. All 25 defendants also are charged with conspiracy to distribute and possession with intent to distribute drugs; and 20 of the defendants are charged with money laundering conspiracy.
The indictment and a detailed affidavit were unsealed today upon the arrests of the defendants and the execution of 15 search warrants. Approximately 170 agents and officers assisted in today's arrests and search warrants. The indictment was returned on April 2, 2013. One defendant was killed in a robbery several hours before the indictment was filed. The defendants are identified in Attachment A.
The indictment arose from the efforts of the Maryland Prison Task Force, a group of local, state and federal stakeholders that met regularly for more than two years and generated recommendations to reform prison procedures.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore Police Commissioner Anthony W. Batts; Secretary Gary D. Maynard of the Maryland Department of Public Safety and Correctional Services; and Chief Mark A. Magaw of the Prince George's County Police Department.
U.S. Attorney Rosenstein also recognized the efforts of the other members of the Maryland Prison Task Force in this investigation and prosecution, including: Baltimore City State's Attorney Gregg L. Bernstein; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; United States Marshal Johnny Hughes; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Tom Carr, Director of the Washington-Baltimore High Intensity Drug Trafficking Area; and Dave Engel, Executive Director of the Maryland Coordination and Analysis Center.
"Correctional officers were in bed with BGF inmates, in violation of the first principle of prison management," said U.S. Attorney Rod J. Rosenstein. "Preventing prison corruption requires intensive screening at prison entrances and punishment for employees who consort with inmates or bring cell phones and drugs into correctional facilities."
"This investigation revealed the pervasive nature of prison corruption in Baltimore City's Detention Centers," said FBI Special Agent in Charge Stephen E. Vogt. "Such corruption causes the FBI to divert crucial investigative resources away from addressing violence on the streets of Baltimore. In this case, the inmates literally took over "the asylum," and the detention centers became safe havens for the BGF. Such a situation cannot be tolerated. Law enforcement should not have to concern itself with criminal subjects who have already been arrested and relegated to detention centers."
"Ninety-nine percent of our Correctional Officers do their jobs with integrity, honesty and respect," said Secretary Gary Maynard of the Maryland Department of Public Safety and Correctional Services. "Today's indictment, along with those in the past, show that our Department will not stand idly by and let a few bad actors affect the security of our institutions. Nor will we allow them to impugn the reputation of the men and women who come to work every day and go about their jobs honorably. Those who would break the law should know we will always work tirelessly with our federal, state and local partners to root out corruption."
"Today's multi-jurisdictional takedown of suspected BGF gang members and orchestrators who infiltrated the criminal justice system is another example of the Baltimore Police Department's relentless focus on targeting the malignant gang organizations that plague our communities," said Police Commissioner Anthony Batts. "Thanks to the hard working detectives, federal agents and prosecutors who worked behind the scenes to build these cases. Our continued pledge to the people of Baltimore is that we will leverage the full capacity of our state and federal partnerships to identify those responsible for violence and bring them to justice."
The 10 men and 15 women charged in the indictment are alleged to be members or associates of the BGF, a gang active in prisons throughout the United States. According to the indictment, BGF has been the dominant gang at the Baltimore City Detention Center (BCDC), and in several connected facilities, especially the Baltimore Central Booking Intake Center, the Women's Detention Center, which houses many men, and in the Jail Industries Building. The indictment alleges that since at least 2009, BGF members and associates in BCDC and related prison facilities engaged in criminal activities, including drug trafficking; robbery; assault; extortion; bribery; witness retaliation; money laundering; and obstruction of justice.
BGF members and associates allegedly bribed correctional officers at BCDC and related prison facilities to smuggle drugs, cell phones and other contraband. Correctional officers arranged favored treatment and privileges for imprisoned BGF gang members, and officers thwarted interdiction and law enforcement efforts against BGF inmates. BGF members and associates allegedly had long-term sexual relationships with several correctional officers and impregnated them.
BGF leaders allegedly used contraband cell phones to order contraband. Co-conspirators delivered contraband to corrupt correctional officers who smuggled the items into the prisons. Correctional officers often arranged payment for the contraband. Some gang dues and drug profits were used to support activities of BGF street organizations outside the prisons.
The charging documents allege that correctional officers were able to bring contraband directly into the prisons through the main entrances. Inside the prisons, BGF was able to control contraband smuggling because BGF gang members were designated as "working men." Working men are inmates who are paid to assist management and are free to move about the facility.
Green Dot cash debit cards were allegedly used by inmates to pay BGF for smuggled contraband and used by BGF to transfer criminal proceeds. Luxury automobiles were among the purchases made by BGF with Green Dot cards.
According to the indictment, members and associates followed directions from the ranking BGF members in BCDC, especially inmate Tavon White. On January, 5, 2013, White explained in a phone call:
"This is my jail. You understand that? I'm dead serious.... I make every final call in this jail, ... and nothing go past me, everything come to me.... Any of my brothers that deal with anybody, it's gonna come to me. You see what I am saying? Everything come to me. Everything. Before a mother-f----- hit a n----- in the mouth, guess what they do, they gotta run it through me. I tell them whether it's a go ahead, and they can do it or whether they hold back. Before a mother-f----- stab somebody, they gotta run it through me.... Anything that get done must go through me."
Tavon White summarized his position in a conversation with correctional officer Adrena Rice on February 11, 2013:
"I told them worker men that they had to step down off the worker men spots or they was getting hit.... I hold the highest seat you can get... My word is law..., so if I told any mother-f------ body they had to do this, hit a police, do this, kill a mother-f-----, do anything, it got to get done. Period."
White allegedly used contraband cell phones to discuss BGF activities inside BCDC, such as the collection of fees and taxes, to request information about inmates, to hear grievances from other BGF inmates, and to coordinate his contraband smuggling operation. White and other gang members developed sexual relationships with officers in order to gain influence over them.
White allegedly had long-term sexual relationships inside BCDC with four correctional officers, Jennifer Owens, Katera Stevenson, Chania Brooks and Tiffany Linder, impregnating each of the four officers at least once. Owens had "Tavon" tattooed on her neck and Stevenson had "Tavon" tattooed on her wrist. All four officers allegedly help smuggle contraband into BCDC and related facilities. White allegedly gave Owens a diamond ring and provided luxury automobiles to Owens, Stevenson and Brooks. The indictment includes many overt acts in furtherance of the racketeering enterprise. For example, in November 2012, correctional officer Jasmin Jones allegedly stood guard outside a closet in BCDC so that correctional officer Kimberly Dennis and inmate Derius Duncan could have sex. Corrupt officers also warned BGF inmates about law enforcement operations. For example, Brooks and Linder allegedly notified White when they learned about upcoming canine scans and jail cell searches. The affidavit specifies two occasions in which warning calls to White were intercepted: December 21, 2012 (from Brooks), and January 6, 2013 (from Linder). White then used his cell phone to spread the word to other inmates.
On January 6, 2013, White allegedly said:
"I just got a message (from Officer Tiffany Linder) saying that they was going to pull a shake down (prison search) tonight. Let me call all these dudes in my phone and let them know."
The U.S. Attorney expressed appreciation to Secretary Maynard and select members of his senior staff who confidentially arranged for 30 trusted correctional officers from outside Baltimore to join with federal agents and conduct surprise searches of BGF members and their jail cells on February 14, 2013, resulting in the discovery of important evidence.
The indictment seeks the forfeiture of $500,000 and other proceeds of the enterprise, including luxury automobiles.
The defendants face a maximum sentence of 20 years in prison on the racketeering and drug conspiracies, as well as for conspiracy to commit money laundering. Stevenson, Yarborough and Pinder each also face five years in prison for possession with intent to distribute marijuana.
The defendants are expected to have initial appearances in U.S. District Court in Baltimore this afternoon.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland Department of Public Safety and Correctional Services, Baltimore Police Department, the Prince George's County Police Department and Maryland Prison Task Force, Baltimore City Assistant State's Attorneys Kevin Wilson and Katie O'Hara for their work in the investigation. Mr Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Ayn B. Ducao, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
ATTACHMENT A
The following defendants are charged in the indictment unsealed today.
Inmates:
Tavon White, a/k/a Bulldog and Tay, age 36, of Baltimore;
Jamar Anderson, a/k/a Hammer and Hamma Head, age 26, of Baltimore;
Derius Duncan, age 26, of Baltimore;
Steven Loney, a/k/a Stevie, age 24, of Baltimore;
Jermaine McFadden, a/k/a Maine, age 24, of Baltimore;
Kenneth Parham, age 23, of Baltimore; and
Joseph Young, a/k/a Monster, age 30, of Baltimore.Correctional officers:
Antonia Allison, age 27, of Baltimore;
Ebonee Braswell, age 26, of Baltimore;
Chania Brooks, age 27, of Baltimore;
Kimberly Dennis, age 26, of Baltimore;
Jasmin Jones, a/k/a J.J., age 24, of Baltimore;
Taryn Kirkland, age 23, of Baltimore;
Katrina LaPrade, a/k/a Katrina Lyons, age 31, of Baltimore;
Tiffany Linder, age 27, of Baltimore;
Vivian Matthews, age 25, of Essex, Maryland;
Jennifer Owens, a/k/a O and J.O., age 31, of Randallstown;
Adrena Rice, age 25, of Baltimore;
Katera Stevenson, a/k/a KK, age 24, of Baltimore; and
Jasmine Thornton, a/k/a J.T., age 26, of Glen Burnie.Outside suppliers:
Tyesha Mayo, age 29, of Baltimore;
Teshawn Pinder, age 24, of Baltimore;
Tyrone Thompson, a/k/a Henry, age 36, of Baltimore;
Ralph Timmons, Jr., a/k/a Boosa, age 34, of Baltimore (deceased); and
James Yarborough, a/k/a J.Y., age 26, of Baltimore
Monday 22 April 2013
U. S. Attorney's Office and Detroit One MembersObserve National Crime Victims's Rights WeekRead the Press Release
Detroit, Michigan - United States Attorney Barbara L. McQuade, Detroit Police Chief Chester Logan, along with several law enforcement agencies and community members of Detroit One as well as the mother of a crime victim will hold an observance in memory of crime victims. The observance will take place on Thursday, April 25, 2013 at 2:30 pm at Lafayette Green Park, located on the corner of W. Lafayette Blvd and Shelby in the downtown area of Detroit.
This event is being held in conjunction with the observance of National Crime Victims' Rights Week, April 21-27. This year's theme, "New Challenges. New Solutions," celebrates the spirit of Detroit One and also highlights the need for us to assist and serve each and every victim in need of hope and help.
A perennial cottage garden will be planted in remembrance of crime victims who have lost their lives to violence in the City of Detroit, with the event to serve as an announcement and invitation to come out and view this lovely memorial. The perennials will re-bloom each year symbolizing those who are not forgotten. The garden is tended regularly and is kept looking beautiful year round.
"The U.S. Attorney's Office is deeply committed to assisting victims of federal crimes, ensuring they are afforded their rights under the Crime Victims' Rights Act, protecting them from further harm, and helping them reshape their futures," said U.S. Attorney McQuade. "This week is a time to raise awareness about the rights and needs of crime victims, the challenges victims face in the recovery process, and the positive impact of those who provide services and support to victims."
The Crime Victims' Rights Act (CVRA), enacted in 2004, grants victims in federal criminal proceedings certain enforceable rights, including the right to be reasonably heard at public court proceedings and to receive full and timely restitution as provided by law. The Eastern District of Michigan, like other federal, state and local law enforcement agencies, has a dedicated Victim Witness Unit that serves federal crime victims across the District's many counties. Members of this unit notify victims of significant case events through the Department of Justice's Victim (DOJ) Notification System (VNS). Such notice enables victims to participate in court proceedings and make their voices heard. According to Department of Justice Statistics, in Fiscal Year (FY) 2011, the U.S. Attorneys' offices provided notice of over 10.4 million case events, including notices regarding criminal charges filed, plea hearings, bond hearings and sentencing hearings.
Notification of significant case events leads to increased victim participation in court proceedings. In FY 2011, Victim-Witness personnel in the United States Attorney's offices accompanied over 28,000 victims to court hearings and trials. Court accompaniment helps ensure that victim participation in court proceedings is meaningful as Victim-Witness personnel can answer questions and explain the federal judicial process.
In addition to notification and court accompaniment, the Eastern District of Michigan's Victim Witness Unit provides essential services to victims, such as making referrals for counseling, securing temporary housing, assisting with access to victim compensation funds, and accompanying victims to court to provide support and guidance during the proceedings. These services provide tools victims need to reshape their futures.
Further information about National Crime Victims' Rights Week is available at http://ovc.ncjrs.gov/ncvrw/.
Two Sentenced for Alton Heroin Overdose DeathRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Tyrone L. Adams, 33, and Cara L. Moss, 26, were each sentenced in United States District Court in East St. Louis on Monday, April 22, 2013, for selling the heroin which caused the overdose death of Leonard O. Hormann, III.
Adams, of Alton, IL, received a sentence of 15 years. Moss, also of Alton, received a sentence of 10 years.
Adams and Moss pled guilty on January 14, 2013 to selling heroin to Hormann in Alton on August 20, 2012. Hormann was 23 years old when he died.
“These severe federal prison sentences should put drug dealers on notice that they peddle heroin at their own risk, and those risks are considerable. My office will continue its initiative to stop the heroin overdose death epidemic among our young citizens. The prosecution and sentencing of Adams and Moss are just a part of our ongoing anti-heroin initiative,” said United States Attorney Wigginton.
Wigginton especially commended the work of the Alton Police Department. “The Alton Police investigation in this case was as good as any I have seen. I am also proud that these convictions resulted from close coordination between my office and the Madison County State’s Attorney’s Office,” said Wigginton.
Adams also received concurrent 15 year sentences for “Maintaining Drug-Involved Premises” at his Powhattan Street residence in Alton, IL, and for “Distribution of Heroin Within 1000 Feet of a School,” that being The Motivational Achievement Center, a public school in Alton.
Moss also received a concurrent 10 year sentence for “Maintaining Drug-Involved Premises” at the residence she shared with Adams in Alton, between June and September 2012.
Close family members of the late Leonard O. Hormann, III spoke at the sentencing hearings on April 22, 2013. Each of those family members spoke of their grief and continuing sense of loss.
At her sentencing hearing on Monday, Moss told the Court that “I started with drinking in high school, then marijuana, cocaine, then pain pills, and finally heroin. I went to rehab and failed. Now I’ve lost my kids because of the terrible choices I made. I just wish I could take it all back.”
The investigation that resulted in the successful prosecutions of Adams and Moss was conducted by the Alton Police Department.
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Two Northern California Men in ‘Sextortion’ Plot Targeting Professional Poker Players Receive Federal Prison SentencesRead the Press Release
LOS ANGELES – Two Silicon Valley men were sentenced today to federal prison terms of 3½ years and two years for their roles in a scheme that used naked photographs and other private information stolen from email accounts in an attempt to extort hundreds of thousands of dollars from professional players on the World Poker Tour.
Tyler Schrier, 23, of Menlo Park, was sentenced to 42 months in prison after pleading guilty to conspiracy, extortion and unauthorized access to a protected computer to obtain information.
In addition to the “sextortion” plot, Schrier admitted that he had previously extorted and received more than $26,000 from professional poker players in another plot. He further admitted that while free on bond after being charged in the “sextortion” case, he illegally accessed two email accounts that allowed him to steal approximately $4,000 from online poker accounts.
The second man sentenced today – Keith James Hudson, 39, of San Jose – received a two-year prison term after pleading guilty to unauthorized access to a protected computer to obtain information for purposes of private financial gain. Hudson admitted that he hacked into a poker player’s email account, stole naked photographs from the illegally accessed account, and plotted with Schrier to extort poker players with those naked images.
Schrier and Hudson were sentenced by United States District Judge S. James Otero.
According to court documents, the sextortion scheme took place in the fall of 2010, after members of the conspiracy illegally accessed an email account belonging to Joe Sebok. Armed with intimate e-mails and photographs of the victim, Schrier threatened to post those intimate photographs and e-mails on the Internet unless Sebok and other victims paid hundreds of thousands of dollars in extortion payments. Sebok and the other victims in this sextortion case did not make any payments.
As part of the scheme, in November 2010, Schrier sent an e-mail with a nude photograph of Sebok to approximately 100 individuals.
During today’s sentencing hearing, Sebok addressed the court and said the victims of the plot had “their lives altered and shattered in irreparable ways.”
After the defendants hacked into his email account and released some information to the public, the fallout “instantly damaged my ability to sustain my livelihood doing what I had been since 2005,” Sebok told Judge Otero. “In short, I was no longer able to maintain my then-current level of participation in the poker industry, representing the brands that I had been previously, as well as greatly destroying my ability to do so with new companies moving forward. Without belaboring the point too much, it was a nightmare, and one that I was forced to live through with millions of people watching.”
A third defendant in the case, Ryder Finney, 22, of Philadelphia, pleaded guilty to conspiracy and will be sentenced later this year in federal court in Philadelphia. At sentencing, Finney faces a statutory maximum sentence of five years in prison.
The sextortion case was investigated by the Federal Bureau of Investigation.
Schrier pleaded guilty pursuant to a plea agreement that involved federal prosecutors in Los Angeles, San Francisco, Connecticut, Boston, Tampa and Minnesota.
Release No. 13-055