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Wednesday 10 April 2013
Tampa Couple Indicted for Stolen Identity Refund FraudRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces the unsealing of a seventeen-count indictment charging Tressa V. Guy and Brian E. Simmons with conspiracy to commit wire fraud and multiple counts of wire fraud, access device fraud, and aggravated identity theft. If convicted, they each face a maximum penalty of twenty years in federal prison on the conspiracy count; twenty years in federal prison on each wire fraud count; and 10 years in federal prison on each charge of access device fraud, all to be followed by two consecutive years in prison for each aggravated identity theft count.
According to the indictment, Guy and Simmons participated in a scheme to defraud the United States Treasury that caused at least 322 fraudulent federal income tax returns to be filed with the IRS claiming at least $2,701,844 in fraudulent refunds. Guy, Simmons, and others would direct the fraudulent tax refunds into bank accounts linked to prepaid debit cards issued in the names of third parties without the third parties’ knowledge. Guy and Simmons also used the prepaid debit cards issued in this manner to make cash withdrawals in Florida and Georgia and to pay for personal expenditures.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service, the Tampa Police Department, and the Monroe County (Georgia) Sheriff’s Office with assistance from the Hillsborough County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Matthew J. Mueller and Trial Attorney Jason H. Poole of the Department of Justice, Tax Division.
Tallahassee Tax Preparer Convicted of Tax FraudRead the Press Release
TALLAHASSEE – Kenneth L. Barber, 62, of Tallahassee, Florida, was convicted by a federal jury in Tallahassee today of wire fraud, preparing false tax returns, making a false statement to a bank, and conspiracy to commit tax fraud. The verdict was announced by Pamela C. Marsh, the United States Attorney for the Northern District of Florida.
At trial, the government presented evidence that Barber ran and operated a local tax preparation business where he encouraged preparers to falsify clients’ tax returns. Barber’s former employees testified that the defendant trained them on how to prepare fraudulent returns to increase the clients’ tax refunds. At Barber’s instruction and direction, the employees filed returns falsifying income, deductions, credits, dependents, and filing status in order to obtain inflated tax refunds and to limit the tax due to the IRS. Government agents testified that the scheme resulted in a loss of more than $700,000.
Barber was convicted of making false statements to a financial institution based upon evidence that he provided a bank with false information concerning his income in order to qualify for loans totaling more than $300,000. Records introduced at trial showed that personal and corporate tax returns Barber submitted to Wachovia Bank reflected substantially greater income than the returns the defendant actually filed with the IRS.
The defendant is facing a maximum sentence of five years in prison for conspiracy, three years in prison on each count of preparing fraudulent tax returns, twenty years in prison on each count of wire fraud, and thirty years in prison on each count of making a false statement to a bank.
In announcing the verdict, U.S. Attorney Marsh said, “As honest American citizens are filing their tax returns in advance of Monday’s deadline, this verdict emphasizes that we continue to aggressively pursue those who defraud and illegally manipulate the tax system. Tax return preparers who engage in illegal schemes abuse positions of trust and willfully undermine the entire tax system. I am grateful to the dedicated public servants who tirelessly investigated and prosecuted this case.” U.S. Attorney Marsh specifically praised the work of the Internal Revenue Service, whose investigation led to the convictions in the case
Barber is scheduled for sentencing on June 26, 2013 before United States District Judge Robert L. Hinkle.
The case was prosecuted by Assistant U.S. Attorney Winifred Acosta NeSmith.St. Pauls Man Sentenced for Possession of FirearmRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that in federal court today MONTREAL MITCHELL, 32, of St. Pauls, North Carolina was sentenced by Senior United States District Judge Malcolm J. Howard to 110 months imprisonment, followed by 3 years of supervised release.
On January 8, 2013, MITCHELL pled guilty to felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g).
According to the investigation, on December 9, 2010, MITCHELL assaulted a woman, pointed a firearm at her, and threatened to kill her. The firearm was recovered still in MITCHELL’S possession.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Robeson County Sheriff’s Office, Fayetteville Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Seven Charged in Health Care Fraud SchemeRead the Press Release
Medicare Billed $3.6 Million for Unnecessary Ambulance Rides
PHILADELPHIA – An indictment was unsealed today charging Penn Choice Ambulance Inc., operating from Philadelphia, PA, Huntington Valley, PA and Camp Hill, PA, its owner, Anna Mudrova, and operators Yury Gerasyuk, Mikhail Vasserman, Irina Vasserman, Aleksandr Vasserman, Valeriy Davydchik, and Khusen Akhmedov, with conspiracy to commit health care fraud. The alleged scheme involved more than $3.6 million in fraudulent claims submitted to Medicare. The defendants were also charged with related crimes including making false statements in connection with health care matters, aggravated identity theft, paying kickbacks to patients, and money laundering, announced United States Attorney Zane David Memeger.
Valeriy Davydchik, 58, and Khusen Akhmedov, 22, Mikhail and Irina Vasserman, both 50, and Aleksandr Vasserman, 29, all of Philadelphia, were arrested this morning. Mudrova, 40, Gerasyuk, 41, also of Philadelphia, will make a court appearance tomorrow. According to the indictment, the defendants conspired to defraud Medicare by recruiting patients who were able to walk and could travel safely by means other than ambulance and who therefore were not eligible for ambulance transportation under Medicare requirements. It is alleged that the defendants, and others acting on their behalf, falsified reports to make it appear that the patients needed to be transported by ambulance when the defendants knew that the patients could be transported safely by other means and that many of them walked to the ambulance for transport. It is further alleged that the defendants themselves, or through others, paid illegal kickbacks to the patients as part of scheme. The defendants allegedly billed Medicare for these ambulance services as if those services were medically necessary and, as a result of the allegedly fraudulent billing, the Medicare program sustained losses of more than $1.5 million for this medically unnecessary method of transportation.
If convicted, the defendants face substantial terms of imprisonment and fines. If convicted, Penn Choice Ambulance Inc. faces significant financial penalties, including substantial criminal fines, restitution and forfeiture obligations. All defendants could also be excluded from participating in federal health care programs.
Bank accounts and other assets were seized which are subject to criminal forfeiture proceedings.
The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of the Inspector General. It is being prosecuted by Assistant United States Attorney M. Beth Leahy.
Click here to view the indictment
An Indictment is an accusation, as is an Information. 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, 215-861-8525San Antonio-Based Texas Mexican Mafia Members SentencedRead the Press Release
United States Attorney Robert Pitman, FBI Special Agent in Charge Armando Fernandez and Texas Department of Public Safety Director Steve McCraw announced that two San Antonio-based members and associates of the Texas Mexican Mafia (TMM), including an individual whom authorities believe held the organizational rank of “Free World General,” have been sentenced to lengthy federal prison terms for their roles in a drug distribution conspiracy.
Appearing before United States District Judge Xavier Rodriguez this afternoon, 45-year-old former TMM General Robert Carreno (aka “Lil Bit”) was sentenced to 300 months in prison for his role in a conspiracy to distribute approximately 48 kilograms of heroin. Guadalupe Ramos (aka “Lupio”), age 48, was sentenced to 210 months in prison.
From December 1, 2009, to July 20, 2011, the defendants were responsible for distributing at least 48 kilograms of heroin, which the TMM sold for $750,000.00. Also, Carreno oversaw the transportation of the heroin from Laredo to San Antonio, for further distribution by TMM members.
Other sentences handed down to co-defendants include: Gabriel Quiroz (aka “Biker”), age 46, sentenced to 168 months; Julio Villanueva (aka “Shorty Hawk”), age 56, sentenced to 262 months; Teresa Alonzo (aka “Tia”), age 63, sentenced to 58 months ; Manuel Gonzales (aka “Speedy”), age 36, sentenced to 188 months; Joseph Sanchez (aka “Cowboy”), age 41, sentenced to 121 months; and Santos Trevino (aka “Dedos,” and “Beatles”), age 20, was sentenced to 120 months.
Co-defendant Alexander Garza (aka “Animal”), age 35, is pending sentencing in May; and 39-year-old Tony Berlanga (aka “Tony”) is pending trial in May.
This investigation was conducted by the Federal Bureau of Investigation’s Safe Streets Task Force, the Texas Department of Public Safety--Criminal Investigations Division, Homeland Security Investigations (HSI), San Antonio Police Department, Bexar County District Attorney’s Office, New Braunfels Police Department and the 81st Judicial District Attorney’s Office.
Ringleader of Large-Scale Identity Theft Scheme Sentenced in Manhattan Federal Court to 10 Years in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Eric T. Schneiderman, the New York State Attorney General, announced that PHILLIP SMITH was sentenced today in Manhattan federal court to 10 years in prison for running a large-scale identity theft scheme in which he and his co-conspirators used stolen identities of over 180 people to make more than $1 million worth of fraudulent purchases at retail stores in New York City and elsewhere. SMITH pled guilty in November 2012 and was sentenced before U.S. District Judge John F. Keenan.
Manhattan U.S. Attorney Preet Bharara stated: “Phillip Smith and his co-conspirators engaged in a ‘soup-to-nuts’ identity theft scheme that ripped off retailers for more than $1 million and had the potential to compromise his victims’ credit ratings. We take identity theft crimes very seriously and will continue to prosecute them to the full extent of the law.”
New York State Attorney General Eric Schneiderman stated: “This defendant victimized businesses and hundreds of New York consumers in a systematic and elaborate scheme to line his own pockets. My office will aggressively crack down on identity theft – and Phillip Smith will spend a decade behind bars for his crimes.”
According to the Complaint, Indictment, and Superseding Informations filed in this case, as well as statements made during court proceedings:
Beginning in 2008, PHILLIP SMITH obtained stolen identities, including the names and social security numbers of legitimate accountholders at large retail chains, including Home Depot, Sears, Kmart, and Kohl’s. After obtaining the stolen identities, SMITH called the customer service numbers at the retail stores to confirm that the victims had credit accounts and to determine the available credit limit. Once that information was obtained from the stores, SMITH procured fake driver’s licenses in the names of the victim accountholders but with photos of co-conspirators, including Eugene Smith and Winston Harris.
PHILLIP SMITH then drove his co-conspirators, including Harris and Eugene Smith, to retail stores throughout New York, Connecticut, New Jersey, and Pennsylvania, where they purchased more than $1 million of merchandise and gift cards using the victims’ accounts. The co-conspirators used the fake driver’s licenses at the time of those purchases to impersonate the victim accountholders.
PHILLIP SMITH obtained the fake driver’s licenses from Mahmoud Abdul Hussein, Ali Abdul Hussein, and Fadal Abdul Hussein, three brothers who operated out of two storefronts in the Greenwich Village area of Manhattan.
After the fraudulent purchases had been made, PHILLIP SMITH drove his co-conspirators, including Harris and Eugene Smith, to other locations of the retailers, where they returned the fraudulently acquired merchandise for store credits. The credits were then sold to other participants in the scheme, including Francis Hidalgo and Randy White, who in turn resold the store credits and gift cards to others.
In addition, Hidalgo used some of the proceeds and gift cards he obtained through the identity theft scheme to purchase building materials so that he could convert two warehouses in the Bronx into marijuana growhouses for a large marijuana distribution organization. A search of one of these growhouses resulted in the seizure of over 400 marijuana plants.
To date, eight of the nine defendants charged with participating in this scheme have been convicted. Charges remain pending against one defendant.
In addition to the prison term, Judge Keenan sentenced PHILLIP SMITH, 55, of the Bronx, New York, to three years of supervised release. SMITH was also ordered to forfeit $404,000 and to pay restitution of $1,153,000.
Francis Hidalgo, 45, of Pomona, New York, was sentenced by Judge Keenan on March 13, 2013 to 78 months in prison, and was ordered to pay $557,816 in restitution.
Randy White, 57, of the Bronx, New York, was sentenced by Judge Keenan on February 7, 2013 to time served, and was ordered to pay restitution in the amount of $46,000.
Winston Harris, 57, of Brooklyn, New York, was sentenced by Judge Keenan on January 24, 2013 to 48 months in prison, and was ordered to pay $70,000 in restitution.
Eugene Smith, 59, of the Bronx, New York, is scheduled to be sentenced by Judge Keenan on June 18, 2013.
Mahmoud Abdul Hussein, 28, Ali Abdul Hussein, 34, and Fadal Abdul Hussein, 23, of Seaford, New York, are scheduled to be sentenced by Judge Keenan on May 9, 2013.
Charges remain pending against Melissa Morton, who allegedly impersonated female identity theft victims at retailers. Morton is presumed innocent unless and until proven guilty.
Mr. Bharara praised the New York Attorney General’s Office, the Immigration and Customs Enforcement’s Homeland Security Investigations, the New York State Department of Financial Services, and the New Jersey Department of Human Services Police for their excellent assistance in the investigation of this matter. He also thanked the NYPD, the New Jersey Department of Labor and Workforce Development, Home Depot, and Kohl’s for their support and cooperation in the investigation.
The case is being handled by Assistant United States Attorney Joseph P. Facciponti of the
Office’s Complex Frauds Unit, Assistant Attorney General Meryl Lutsky, who has been
designated a Special Assistant U.S. Attorney, and Assistant Attorney General Tyler Reynolds.
Reva Man Charged with Stalking, ID Fraud, Other ChargesRead the Press Release
CHARLOTTESVILLE, VIRGINIA -- A resident of Reva, Virginia, who was arrested in March on a Federal criminal complaint, has been indicted by a Federal Grand Jury sitting in the United States District Court for the Western District of Virginia in Charlottesville.
The grand jury has charged Kenneth Edward Kuban, 61, of Reva, Virginia, with one count of stalking, one count of stalking in violation of a protection order, one count of identification fraud and one count of violating a protection order within the special maritime and territorial jurisdiction of the United States
The charges in the indictment allege that Kuban knowingly caused others to travel in interstate commerce to unknowingly stalk the victim, thereby placing the victim in fear of serious bodily injury and causing substantial emotional distress.
If convicted, the defendant faces a maximum possible penalty of up to five years in prison and/or a fine of up to $250,000 on each count.
The investigation of the case was conducted by the Library of Congress-Office of the Inspector General. Special Assistant United States Attorney Jason Beaton will prosecute the case for the United States.
A Grand Jury indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Removed Alien Charged with Immigration ViolationRead the Press Release
PITTSBURGH, Pa. - A citizen of Mexico has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal immigration laws, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on April 9, 2013, named Francisco Javier Abundes- Montiel, 32, of Mexico, as the sole defendant.
According to the indictment, Abundes-Montiel, an alien, was removed from the United States by United States Immigration and Customs Enforcement on April 2, 2011. He was found on March 1, 2013, by the Center Township Police Department.
The law provides for a maximum total sentence of two years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Margaret E. Picking is prosecuting this case on behalf of the government.
United States Immigration and Customs Enforcement (ICE) 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.
Prominent Tri-State Cardiologist Admits Record $19 Million Billing Fraud Scheme, Exposing Patients to Unskilled and Unnecessary Medical TreatmentRead the Press Release
NEWARK, N.J. – A well-known cardiologist and the founder, CEO, and sole owner of a pair of large medical services companies in New Jersey and New York admitted today to conspiring in a multimillion-dollar health care fraud scheme that subjected thousands of patients to unnecessary tests and potentially life-threatening, unneeded treatment, as well as treatment by unlicensed or untrained personnel. The guilty plea was announced today by New Jersey U.S. Attorney Paul J. Fishman.
Jose Katz, 68, of Closter, N.J., pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an Information charging him with one count of conspiracy to commit health care fraud and one count of Social Security fraud arising from a separate scheme to give his wife a “no show” job and make her eligible for Social Security benefits.
As part of his plea agreement with the government, Katz agreed that the loss amount sustained by Medicare, Medicaid and other insurers victimized by the fraudulent billings was $19 million. U.S. Department of Health and Human Services, Office of Inspector General and FBI records indicate the loss amount suffered by the victims is the largest recorded in New Jersey, New York and Connecticut for an individual practitioner convicted of health care fraud.
“After years of prominence in his field, Jose Katz will now be remembered for his record-setting fraud,” said U.S. Attorney Fishman. “Katz was so focused on illegal profits that he directed unlicensed and unqualified providers to treat his patients, ordered unnecessary tests and cavalierly ordered treatments that could have caused patient harm. Ripping off the government and insurance companies is bad enough; risking patient health in the bargain is inexcusable.”
“Health care fraud is not a victimless crime. It is a plague on American society and could put the health of people who need medical care at risk, said FBI Special Agent in Charge Aaron T. Ford. “The FBI, together with its law enforcement and regulatory agency partners, will vigorously investigate these crimes and hold those responsible accountable.”
“I am proud to be part of the federal team that brought Dr. Katz to justice after a complicated investigation,” said Tom O’Donnell, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Regional Office. Dr. Katz had very little regard for his patients and the Medicare program, as evidenced by his blatant behavior. Criminals can be assured that if they attempt to defraud Medicare and their patients, they will be brought to justice.”
According to documents filed in this case and statements made in court:
Katz was the founder, CEO, and sole equity-holder of Cardio-Med Services LLC (Cardio-Med), and Comprehensive Healthcare & Medical Services LLC (Comprehensive Healthcare). From 2004 through 2012, Cardio-Med had offices in Union City, Paterson, and West New York, N.J., and Comprehensive Healthcare had offices in Manhattan and Queens, New York. Both Cardio-Med and Comprehensive Healthcare provided cardiology, internal medicine and other medical services to individual patients. During that time period, Katz conspired to bill Medicare Part B, Medicaid, Empire BCBS, Aetna and others for unnecessary tests and unnecessary procedures based on false diagnoses, and for medical services rendered by unlicensed practitioners.
Between July 2006 and February, 2009, Katz spent more than $6 million for advertising on Spanish-language television and radio stations. The ads attracted hundreds of patients to Cardio-Med and Comprehensive Healthcare every day. Overall, Katz was able to bill Medicare and Medicaid more than $70 million for his services from 2005 through 2012.
Over the course of the conspiracy, Katz ordered and performed essentially the same battery of diagnostic tests for nearly all the patients he treated, regardless of their symptoms. Katz also instructed his non-physician employees to order and perform diagnostic tests for patients of other doctors working at his offices, even though he had not examined those patients and the other physicians had not ordered the unnecessary tests.
Most significantly, Katz admitted that he falsified patient charts with fictitious and boilerplate symptoms and falsely diagnosed a majority of his Medicare and Medicaid patients with coronary artery disease and debilitating and inoperable angina. He also admitted to making the diagnoses to justify prescribing and administering an unnecessary treatment for those patients called enhanced external counter pulsation, or EECP. Katz even prescribed EECP treatments for some patients with contraindications for the treatment, therefore subjecting those patients to a substantial risk of serious injury or death.
From 2005 through 2012, Medicare and Medicaid paid Katz more than $15.6 million just for his EECP treatments, most of which were fraudulent.
In addition, Katz ordered conspirator Mario Roncal, 62, of Woodland Park, N.J. – who had a medical degree from San Juan Bautista School of Medicine in San Juan, Puerto Rico, but did not have a license to practice medicine in any of the 50 states – to treat patients, knowing he was not licensed. At Katz’s direction, Roncal held himself out to fellow employees and to patients as “Dr. Roncal,” examined new patients as well as Katz’s follow-up patients, ordered diagnostic tests, diagnosed patients with medical conditions and diseases and recommended and prescribed courses of treatment and surgery – including falsely diagnosing patients with angina and prescribing EECP treatments for those patients.
To conceal this illegal and unlicensed practice of medicine, Roncal forged Katz’s signature on paperwork associated with Roncal’s unlawful medical services, including on patient charts. During the conspiracy, Katz used his own billing numbers to bill Medicare Part B and Medicaid for the illegal services Roncal provided as though they were provided by Katz.
Roncal was indicted on March 2, 2012, for conspiracy to commit health care fraud. He entered a guilty plea on Jan. 4, 2013 and awaits sentencing.
Katz also admitted to a Social Security fraud scheme in which, from 2005 through 2012, he kept his wife on Cardio-Med’s payroll though she performed little or no work. During the course of the scheme, Katz sent false W-2 forms for calendar years 2005 through 2011 to the U.S. Social Security Administration purportedly reflecting $1,251,604 in earnings for his wife, making her eligible for an estimated $263,000 in Social Security benefits to which she was not entitled.
The health care fraud conspiracy and fraud counts with which Katz is charged carry a maximum potential penalty of 10 and five years in prison, respectively. Each count also carries a maximum $250,000 fine, or twice the gross gain or loss from the offense. At sentencing, currently scheduled before Judge Linares on July 23, 2013, Katz will also be ordered to pay restitution to victims of his offenses. Katz was granted $200,000 bail pending sentencing.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge O’Donnell; the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Maria Kelokates; the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Edward J. Ryan; IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen; and criminal and civil investigators with the U.S. Attorney’s Office for the investigation leading to the guilty plea.
The case is being prosecuted by Assistant U.S. Attorney Scott B. McBride of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
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Defense counsel: Blair R. Zwillman Esq., Parsippany, N.J.
Joseph A. Hayden Jr., Esq.; Roseland, N.J.Katz Information
Prominent Tri-State Cardiologist Admits Record $19 Million Billing Fraud Scheme, Exposing Patients to Unskilled and Unnecessary Medical TreatmentRead the Press Release
NEWARK, N.J. – A well-known cardiologist and the founder, CEO, and sole owner of a pair of large medical services companies in New Jersey and New York admitted today to conspiring in a multimillion-dollar health care fraud scheme that subjected thousands of patients to unnecessary tests and potentially life-threatening, unneeded treatment, as well as treatment by unlicensed or untrained personnel. The guilty plea was announced today by New Jersey U.S. Attorney Paul J. Fishman.
Jose Katz, 68, of Closter, N.J., pleaded guilty before U.S. District Judge Jose L. Linares in Newark federal court to an Information charging him with one count of conspiracy to commit health care fraud and one count of Social Security fraud arising from a separate scheme to give his wife a “no show” job and make her eligible for Social Security benefits.
As part of his plea agreement with the government, Katz agreed that the loss amount sustained by Medicare, Medicaid and other insurers victimized by the fraudulent billings was $19 million. U.S. Department of Health and Human Services, Office of Inspector General and FBI records indicate the loss amount suffered by the victims is the largest recorded in New Jersey, New York and Connecticut for an individual practitioner convicted of health care fraud.
“After years of prominence in his field, Jose Katz will now be remembered for his record-setting fraud,” said U.S. Attorney Fishman. “Katz was so focused on illegal profits that he directed unlicensed and unqualified providers to treat his patients, ordered unnecessary tests and cavalierly ordered treatments that could have caused patient harm. Ripping off the government and insurance companies is bad enough; risking patient health in the bargain is inexcusable.”
“Health care fraud is not a victimless crime. It is a plague on American society and could put the health of people who need medical care at risk, said FBI Special Agent in Charge Aaron T. Ford. “The FBI, together with its law enforcement and regulatory agency partners, will vigorously investigate these crimes and hold those responsible accountable.”
“I am proud to be part of the federal team that brought Dr. Katz to justice after a complicated investigation,” said Tom O’Donnell, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Regional Office. Dr. Katz had very little regard for his patients and the Medicare program, as evidenced by his blatant behavior. Criminals can be assured that if they attempt to defraud Medicare and their patients, they will be brought to justice.”
According to documents filed in this case and statements made in court:
Katz was the founder, CEO, and sole equity-holder of Cardio-Med Services LLC (Cardio-Med), and Comprehensive Healthcare & Medical Services LLC (Comprehensive Healthcare). From 2004 through 2012, Cardio-Med had offices in Union City, Paterson, and West New York, N.J., and Comprehensive Healthcare had offices in Manhattan and Queens, New York. Both Cardio-Med and Comprehensive Healthcare provided cardiology, internal medicine and other medical services to individual patients. During that time period, Katz conspired to bill Medicare Part B, Medicaid, Empire BCBS, Aetna and others for unnecessary tests and unnecessary procedures based on false diagnoses, and for medical services rendered by unlicensed practitioners.
Between July 2006 and February, 2009, Katz spent more than $6 million for advertising on Spanish-language television and radio stations. The ads attracted hundreds of patients to Cardio-Med and Comprehensive Healthcare every day. Overall, Katz was able to bill Medicare and Medicaid more than $70 million for his services from 2005 through 2012.
Over the course of the conspiracy, Katz ordered and performed essentially the same battery of diagnostic tests for nearly all the patients he treated, regardless of their symptoms. Katz also instructed his non-physician employees to order and perform diagnostic tests for patients of other doctors working at his offices, even though he had not examined those patients and the other physicians had not ordered the unnecessary tests.
Most significantly, Katz admitted that he falsified patient charts with fictitious and boilerplate symptoms and falsely diagnosed a majority of his Medicare and Medicaid patients with coronary artery disease and debilitating and inoperable angina. He also admitted to making the diagnoses to justify prescribing and administering an unnecessary treatment for those patients called enhanced external counter pulsation, or EECP. Katz even prescribed EECP treatments for some patients with contraindications for the treatment, therefore subjecting those patients to a substantial risk of serious injury or death.
From 2005 through 2012, Medicare and Medicaid paid Katz more than $15.6 million just for his EECP treatments, most of which were fraudulent.
In addition, Katz ordered conspirator Mario Roncal, 62, of Woodland Park, N.J. – who had a medical degree from San Juan Bautista School of Medicine in San Juan, Puerto Rico, but did not have a license to practice medicine in any of the 50 states – to treat patients, knowing he was not licensed. At Katz’s direction, Roncal held himself out to fellow employees and to patients as “Dr. Roncal,” examined new patients as well as Katz’s follow-up patients, ordered diagnostic tests, diagnosed patients with medical conditions and diseases and recommended and prescribed courses of treatment and surgery – including falsely diagnosing patients with angina and prescribing EECP treatments for those patients.
To conceal this illegal and unlicensed practice of medicine, Roncal forged Katz’s signature on paperwork associated with Roncal’s unlawful medical services, including on patient charts. During the conspiracy, Katz used his own billing numbers to bill Medicare Part B and Medicaid for the illegal services Roncal provided as though they were provided by Katz.
Roncal was indicted on March 2, 2012, for conspiracy to commit health care fraud. He entered a guilty plea on Jan. 4, 2013 and awaits sentencing.
Katz also admitted to a Social Security fraud scheme in which, from 2005 through 2012, he kept his wife on Cardio-Med’s payroll though she performed little or no work. During the course of the scheme, Katz sent false W-2 forms for calendar years 2005 through 2011 to the U.S. Social Security Administration purportedly reflecting $1,251,604 in earnings for his wife, making her eligible for an estimated $263,000 in Social Security benefits to which she was not entitled.
The health care fraud conspiracy and fraud counts with which Katz is charged carry a maximum potential penalty of 10 and five years in prison, respectively. Each count also carries a maximum $250,000 fine, or twice the gross gain or loss from the offense. At sentencing, currently scheduled before Judge Linares on July 23, 2013, Katz will also be ordered to pay restitution to victims of his offenses. Katz was granted $200,000 bail pending sentencing.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge O’Donnell; the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Maria Kelokates; the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Edward J. Ryan; IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen; and criminal and civil investigators with the U.S. Attorney’s Office for the investigation leading to the guilty plea. He also thanked the Medicaid Fraud Division of the Office of the New Jersey State Comptroller for its assistance.
The case is being prosecuted by Assistant U.S. Attorney Scott B. McBride of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
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Defense counsel: Blair R. Zwillman Esq., Parsippany, N.J.
Joseph A. Hayden Jr., Esq.; Roseland, N.J.Katz Information
Pittsburgh Man Sentenced to 10 Years in Prison for Drug Law ViolationsRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh was sentenced on April 9, 2013, in federal court for violating federal narcotics trafficking laws, United States Attorney David J. Hickton announced today.
Andre Allen, 30, was sentenced to serve 120 months in prison followed by eight years of supervised release by United States District Judge Arthur J. Schwab. From January 2010 to March 3, 2011, Allen conspired to distribute and possess with intent to distribute at least 400 grams of heroin. On March 3, 2011, Mr. Allen was arrested in Pittsburgh. At that time, he possessed $3,698.00 in United States currency on his person and thirteen bricks of heroin inside his residence.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pittsburgh Police Department, the United States Postal Inspection Service, the Pennsylvania State Police, the Allegheny County Sheriff's Office, the Ross Township Police Department, the Canonsburg Police Department, and the Allegheny County Police Department for the successful investigation leading to the conviction and sentence in this case.
Pittsburgh Man Charged with Filing False Tax ReturnsRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh has been indicted by a federal grand jury on charges of filing false tax returns, United States Attorney David J. Hickton announced today.
The two-count indictment, returned on April 9, 2013, named Zenford A. Mitchell as the sole defendant.
According to the indictment, Mitchell, filed false tax returns on April 14, 2008, for calendar year 2006 and for 2007 by deliberately under reporting his income.
The law provides for a maximum total sentence of three years in prison, a fine of $250,000, or both for each count of conviction. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Internal Revenue Service 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.
Pinehill, N.M., Man Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Charlie Cohoe, 33, an enrolled member of the Navajo Nation who resides in Pine Hill, N.M., pleaded guilty to a federal assault charge under a plea agreement with the U.S. Attorney’s Office.
Cohoe was arrested on Jan. 25, 2013, on a criminal complaint charging him with assault with a dangerous weapon and assault resulting in serious bodily injury. According to the criminal complaint, on Jan. 18, 2013, Cohoe repeatedly stabbed another Navajo man who had agreed to drive Cohoe to a friend’s residence. The assault occurred in in Cibola County within the Ramah Indian Reservation.
During this morning’s proceedings, Cohoe pled guilty to a felony information, charging him with assault with a dangerous weapon. In entering his guilty plea, Cohoe admitted assaulting the victim with a knife, causing life-threatening injuries that required surgery.
Cohoe has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Cohoe faces a maximum penalty of ten years in prison, a $250,000 fine and three years of supervised release.
The case was investigated by the Ramah Navajo Police Department with assistance from the New Mexico State Police, the Grants Police Department and the Cibola County Sheriff’s Department, and is being prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
Philadelphia Man Sentenced for Laser Strike IncidentRead the Press Release
PHILADELPHIA - Daniel F. Dangler, 30, of Philadelphia, was sentenced today to three months in jail followed by seven months of home confinement for aiming the beam of a laser at an aircraft in the special aircraft jurisdiction of the United States. Dangler aimed a laser pointer at a Philadelphia television news helicopter on July 18, 2012. He pleaded guilty on October 17, 2012. U.S. District Court Judge John R. Padova also ordered three years of supervised release.
The news helicopter was on assignment when the news photographer noticed the helicopter cockpit light up with a bright green light. He instructed the pilot not to look in the direction of the beam. A green laser beam is more powerful than a red laser beam but either can cause retina damage to the crew of an aircraft. The helicopter crew was able to identify the house from which the laser originated, uniformed officers responded and Dangler was questioned. Initially he denied using the laser but, on a subsequent interview with FBI agents, he admitted to knowingly shining the laser beam at the helicopter.On February 14, 2012, President Barack Obama signed the FAA Modernization and Reform Act of 2012, which modernizes the nation’s aviation system. This Act establishes a new criminal offense for aiming the beam of a laser at an aircraft in the special aircraft jurisdiction of the United States, or at the flight path of such an aircraft. The statute was enacted in response to a growing number of incidents of pilots being distracted or even temporarily blinded by laser beams.
The FAA also has a civil case pending against Dangler in which Dangler could be fined up to $11,000.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It was prosecuted by Special Assistant United States Attorney Pedro de la Torre.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Omaha Man Sentenced for Illegal Possession of a FirearmRead the Press Release
United States Attorney Deborah R. Gilg announced that on April 10, 2013, Isaiah Cobb, Jr., 28, of Omaha was sentenced to a total of four years and 10 months (58 months) in prison for illegal possession of a firearm. Cobb was sentenced to three years and ten months (46 months) for being a felon in possession of a firearm. He received an additional one year (12 months) for violating the terms of his supervised release in an earlier case. The prison sentences are to run consecutively to each other. Following the completion of the prison terms, Cobb will serve an additional three years on supervised release.
In 2005, Cobb was convicted in federal court in Lincoln of possession with intent to distribute cocaine base (crack cocaine) within 1000 feet of a school. In January of 2007, Cobb began serving an eight-year term of supervised release after completing his prison term.
On August 24, 2012, Cobb’s supervising U.S. Probation Officer was conducting a home visit at Cobb’s Omaha apartment. During the visit, Cobb told his Probation Officer he had a gun in his apartment for protection due to his concerns about another resident of his apartment building. During a search of Cobb’s apartment, a U.S. Probation officer found a loaded pistol in a closet. Omaha Police Department records showed the gun had been reported stolen from a vehicle in June of 2007. In addition to being a violation of the law, the presence of the firearm in Cobb’s residence was a violation of the terms of his supervised release.
The matter was investigated by the United States Probation Office for the District of Nebraska and the Omaha Police Department.
Norwich Man Charged with Federal Narcotics and Firearms OffensesRead the Press Release
David B. Fein, United States Attorney for the District of Connecticut, announced that a federal grand jury sitting in New Haven returned a three-count indictment today charging THEODORE JONES, also known as “Ish,” and “William Wooley,” 28, of Norwich, with heroin and firearms related offenses.
As alleged in the indictment, on October 2, 2012, JONES possessed heroin, which he intended to distribute, a .45 caliber semi-automatic pistol and seven rounds of .45 caliber ammunition. Prior to October 2012, JONES had been convicted of felony drug, burglary and assault offenses.
The indictment charges JONES with one count of possession of heroin with intent to distribute, which carries a maximum term of imprisonment of 20 years and a fine of up to $1 million, and one count of possession of a firearm in furtherance of drug trafficking, which carries a mandatory consecutive prison term of at least five years and a fine of up to $250,000. The indictment also charges JONES with one count of possession of a firearm and ammunition by a convicted felon, which carries a maximum term of imprisonment of 10 years and a fine of up to $250,000.
JONES has been detained in state custody since his arrest on October 2, 2012.
This matter has been assigned to United States District Judge Michael P. Shea in Hartford.
U.S. Attorney Fein stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the Norwich Police Department and the Office of the State’s Attorney for the Judicial District of New London. The case is being prosecuted by Assistant United States Attorney John H. Durham.
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[email protected]Newark Police Officer Sentenced to Four Years in Prison for Defrauding Bank of $1.9 Million Loan and Bribing Bank EmployeeRead the Press Release
CAMDEN, N.J. – Newark Police Officer Victor Patela was sentenced today to 48 months in prison for his role in a conspiracy to commit bank fraud, bank fraud, two counts of loan application fraud and bank bribery, U.S. Attorney Paul J. Fishman announced.
The jury returned the guilty verdict against Patela, 37, of Newark, following a one-week trial before U.S. District Judge Noel L. Hillman in Camden federal court.
According to documents filed in this case and the evidence at trial:
Patela conspired to defraud Spencer Savings Bank, located in Elmwood Park, N.J., by providing false statements and documents in order to secure a $1,920,000 commercial loan for JVI Realty LLC, ("JVI") a New Jersey limited liability company solely owned by Patela. Patela made bribery payments to a bank employee, who served as the loan officer on JVI Realty's commercial loan. On August 30, 2004, Patela paid a $10,000 bribe to a Spencer Savings Bank employee.
Approximately two weeks later, Patela applied for a commercial real estate loan from Spencer Savings Bank to purchase apartment buildings located in Elizabeth, N.J. In order to obtain the loan, Patela signed a Personal Financial Statement ("PFS") falsely reporting that he had a net worth that included $430,000 cash in bank accounts and real estate valued at $3.5 million. Patela signed the PFS underneath the Representations and Warranties section, agreeing the information was correct, although he knew he did not have the money.
In connection with complying with Spencer Savings Bank's condition that Patela demonstrate proof that he had $480,000 to make a down payment on the properties in Elizabeth, Patela submitted a fake real estate contract to the bank.The Mortgage & Security Agreement JVI entered into with Spencer Savings prohibited Patela from encumbering or mortgaging the Elizabeth apartment buildings without the bank's written consent. However, JVI, through Patela, subsequently secured a second mortgage on the Elizabeth apartment buildings – signing the second mortgage and mortgage note as a corporate officer of JVI. The $300,000 loan was used as part of the $480,000 equity contribution to purchase the Elizabeth apartment buildings. The same day, Patela, through JVI, paid the bank employee a $20,000 bribe and over the next year paid the bank employee more than $10,000 in separate payments.
In addition to the prison term, Judge Hillman sentenced Patela to three years of supervised release and ordered him to pay $819,793 in restitution.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today's sentence.
The government is represented by Assistant U.S. Attorneys Zahid N. Quraishi and Vikas Khanna of the U.S. Attorney's Office Special Prosecutions Division in Newark.13-162
Defense counsel: Anna G. Cominsky Esq., NewarkNew York City Lawyer Sentenced in Manhattan Federal Court to Five Years in Prison for Operating Massive Immigration Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that EARL SETH DAVID was sentenced today in Manhattan federal court to five years in prison for running an immigration fraud mill through his Manhattan-based law practice. As part of the scheme, DAVID and his co-conspirators applied for legal status for tens of thousands of illegal aliens based on phony claims that they had been sponsored for employment by U.S. employers. DAVID was indicted in October 2011, and extradited to the United States from Canada in January 2012. He pled guilty in April 2012 to one count of conspiracy to commit immigration fraud, and one count of conspiracy to commit mail and wire fraud. DAVID was sentenced today before U.S. District Judge Naomi Reice Buchwald.
Manhattan U.S. Attorney Preet Bharara stated: “Earl David abused his attorney’s license to exploit his alien clients who were seeking the American dream and to perpetrate a fraud on the federal government. He is now the 12th defendant in this sprawling scheme to be punished.”
According to the Superseding Indictment and statements made during court proceedings:
U.S. law permits an alien to petition for legal status if the alien has obtained a certification from the U.S. Department of Labor (“DOL”) certifying that a U.S. employer wishes to employ, or “sponsor,” the alien. An alien who obtains the DOL certification can then use it to petition the U.S. Citizenship and Immigration Services to obtain legal status in the United States.
From 1996 until early 2009, DAVID operated a Manhattan-based immigration law firm (the “David Firm”) that took in millions of dollars in fees from its alien-clients for purportedly securing them legal immigration status. In return for fees of up to $30,000 per alien-client, the David Firm applied for and obtained thousands of DOL certifications based upon phony employment sponsorships and fabricated documents, including fake pay stubs, fake tax returns, and fake “experience letters,” purporting to show that the sponsorships were real and that the aliens possessed special employment skill sets justifying labor-based certification by DOL. In reality, the sponsors had no intention of hiring the aliens, and the sponsor companies often did not even exist other than as shell companies for use in the fraudulent scheme. As a result of the fraud, DOL issued thousands of certifications, and immigration authorities granted legal status to thousands of the David Firm’s clients, when such adjustments were unwarranted and otherwise would not have been made. The Government has identified at least 25,000 immigration applications submitted by the David Firm – the vast majority of which have been determined to contain false, fraudulent, and fictitious information.
In furtherance of the scheme, DAVID and his employees recruited many people to participate, including dozens of individuals who, in exchange for payment, agreed to falsely represent to DOL that they were sponsoring aliens for employment; corrupt accountants who created fake tax returns for the fictitious sponsor companies; and a corrupt DOL employee who helped ensure that DOL certifications were granted based upon the fraudulent applications.
DAVID continued to operate the scheme even after he was suspended from the practice of law in New York State in March 2004. He fled to Canada in 2006 after learning that his firm was under federal criminal investigation. However, illicit profits from the scheme continued to be funneled to him in Canada, including through a bank account in the name of a biblical treatise he had authored entitled “Code of the Heart.” The David Firm ceased operations in early 2009, when federal search warrants were executed at several locations associated with the firm.
To date, a total of 26 individuals have been charged with participating in the scheme. Twenty-four defendants have been convicted, and two – Ali Gomaa and Sariel Sabale – remain fugitives. The charges against Ali Gomaa and Sariel Sabale are merely accusations, and the defendants are presumed innocent unless and until proven guilty. DAVID is the twelfth defendant to be sentenced.
In addition to the prison term, Judge Buchwald sentenced DAVID, 49, of New York, New York, to two years of supervised release. He was also ordered to forfeit $2.5 million, and to pay a $200 special assessment.
Mr. Bharara praised the work of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations for their outstanding work in the investigation.
This case is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Janis Echenberg and James Pastore are in charge of the prosecution.
Nashville Man Sentenced for Environmental CrimeRead the Press Release
RALEIGH- United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever III, sentenced HARVEY BRYANT PRIDGEN, 58, of Nashville, North Carolina, to six months imprisonment followed by one year supervised release that includes six months home confinement with electronic monitoring. The Court also imposed a fine of $300,000. Additionally, as part of his plea agreement, PRIDGEN made a $11,367.77 payment to the North Carolina Ecogogical System Enhancement Program – Wetlands Restoration Fund.
A Superseding Criminal Information was filed on September 5, 2012, charging PRIDGEN with unauthorized fill of wetlands, in violation of Title 33, United States Code, Section 1311(a) and 1319(c)(1)(A). On September 6, 2012, PRIDGEN pled guilty to the charge.
According to evidence presented in court, in May, 2010, an investigation was initiated into the illegal dumping of petroleum-contaminated soil in a protected wetland area in Jones County, North Carolina. It was learned that the soil was a product of an environmental clean-up project on Marine Corp Air Station New River and that in March, 2010, the Marine Corps had contracted with Osage of Virginia Inc., to conduct environmental remediation services. Osage, in turn, contracted P&F Services, Inc., to haul contaminated soil from the excavation site and ensure its proper disposal. PRIDGEN was the owner of P&F.
In April, 2010, the manager of an area of farmland contracted PRIDGEN to deliver soil to the farm to fill a low-lying area. In April, 2010 to May, 2010, an estimated 50-60 trucks loaded with contaminated soil from the Marine Corps project were dumped on the property. The contaminated soil was then pushed by bulldozers into a protected wetlands area located on the farm. In mid-May, 2010, a site inspection of the farm was performed and it was confirmed that the soil dumped was contaminated.
Investigation of this case was conducted by the North Carolina State Bureau of Investigation, the United States Environmental Protection Agency – Criminal Investigation Division, the United States Department of Agriculture – Office of Inspector General, the North Carolina Department of Environment and Natural Resources, the Naval Criminal Investigative Service, and the United States Army Corps of Engineers. Assistant United States Attorney Banumathi Rangarajan prosecuted the case.
Munhall Man Charged with Assaulting FBI Task Force OfficerRead the Press Release
PITTSBURGH, Pa. - A resident of Munhall, Pa., has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal law, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on April 9, 2013, named Kim Winwood, 61.
According to the indictment, on or about March 14, 2013, Winwood assaulted, resisted, and impeded certain officers or employees of the United States during the performance of their official duties, and he caused bodily injury to a Federal Bureau of Investigation Task Force Officer.
The law provides for a maximum total sentence of 20 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 Eric S. Rosen is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation Greater Pittsburgh Safe Streets Gang Task Force, Allegheny County Sheriff's Office, Munhall Police Department, West Homestead Police Department and Pennsylvania Office of Attorney General 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.
Multi-Violating Drug Dealer SentencedRead the Press Release
RALEIGH- United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever III, sentenced JOEL ARTIS, 37, of Goldsboro, North Carolina, to 156 months imprisonment followed by three years supervised release.
ARTIS was originally charged by Criminal Information on March 19, 2012, with possessing with intent to distribute a quantity of marijuana and a quantity of cocaine. On May 10, 2012, ARTIS pled guilty to the charges.
According to evidence presented in court, on March 28, 2011, ARTIS met co-defendant Eric Henry at a store in Goldsboro, North Carolina. Henry offered to sell ARTIS some marijuana. A time and place were set for the drug deal to occur. ARTIS went to the specified location and waited. Co-defendant Isiah Young got into ARTIS’ car and handed him approximately 782 grams of marijuana. As ARTIS turned to put the bag in the back seat, he saw co-defendant Thompson walking up on the side of the vehicle. ARTIS looked back at Young and Young was pointing a gun at him. Thompson got in the back seat, and ARTIS grabbed his own gun and shot Young. A fight ensued between ARTIS and Young, with ARTIS firing his weapon again. Eventually Young and Thompson fled on foot. Officers, responding to a 9-1-1 call, observed a vehicle committing traffic violations. Officers stopped the vehicle, which contained Henry, Thompson, Young and a driver. Young had been shot. After smelling marijuana, officers saw a plastic bag full of marijuana in plain view and two guns, covered with blood, were on the floorboard. Henry, Thompson, and Young were arrested. During a search of ARTIS’ vehicle, officers found a small amount of cocaine, marijuana, and set of scales.
While awaiting sentencing, ARTIS was involved in another drug deal on September 4, 2012, at the Lighthouse Market in Goldsboro, North Carolina. ARTIS was arrested and found in possession of 0.73 gram of Heroin, 6.76 grams of cocaine, and a mixture of 0.87 grams of Benzylpiperazine (BZP), Trifluoromethylphrnylpiperazine(MDPPP)and Methyenedioxyprovalerone (MDPV).
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Goldsboro Police Department. Assistant United States Attorney Jane J. Jackson prosecuted the case.
Mt. Vernon Man Sentenced to 15 Years for Joplin Bank RobberyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Mt. Vernon, Mo., man was sentenced in federal court today for robbing a Joplin, Mo., bank.
Wesley Charles Osborne, 35, of Mt. Vernon, was sentenced by U.S. District Judge Greg Kays to 15 years in federal prison without parole. The court also ordered Osborne to pay $2,240 in restitution to United Missouri Bank.
On Sept. 12, 2012 Osborne pleaded guilty to robbing United Missouri Bank in Joplin on June 18, 2012. According to court documents, Osborne walked to the teller counter and presented a demand note to a bank teller. He jumped the teller counter, ordered bank employees to the ground and ordered a bank employee to open a teller drawer. Osborne grabbed money from the drawer, jumped back over the teller counter and left the bank.
On June 19, 2012 Osborne was arrested at the Downstream Casino in Quapaw, Okla., after security personnel at the hotel where Osborne was staying responded to a complaint made by another hotel guest. Osborne was arrested for allegedly assaulting a female he had registered with at the hotel. After his arrest, Osborne was transported to the Ottawa County Jail in Miami, Okla. The next day an anonymous caller identified Osborne as the man who robbed United Missouri Bank.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Joplin, Mo., Police Department and the FBI.
Mount Pleasant Man Sentenced for Domestic Assault on Indian ReservationRead the Press Release
A 49-year-old resident of Mount Pleasant, Michigan was sentenced today by United States District Judge Thomas L. Ludington to 28 months in custody followed by two years of supervised release, after having pled guilty on December 7, 2012 to domestic assault by a habitual offender announced U.S. Attorney Barbara L. McQuade.
On or about September 13, 2012, Paul Steven Hawk, got into an argument with his girlfriend and struck her in the lip. Hawk also illegally possessed a gun during this incident and attempted to improperly influence witnesses that he knew were going to testify at the grand jury. The assault occurred on the Isabella Reservation after Hawk had previously been convicted of Family Violence in 2000 and 2003.
The case was investigated by the Saginaw Chippewa Tribal Police. The case was prosecuted by Assistant United States Attorney Roy Kranz.
Mortgage Fraud Promoters Operating in Union and Mecklenburg Counties Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – Two defendants were sentenced to lengthy prison terms on Tuesday, April 9, 2013, for their role in a mortgage fraud conspiracy that primarily targeted neighborhoods in Union and Mecklenburg counties, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
Joining U.S. Attorney Tompkins in making today’s announcement is Jeannine A. Hammett, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
Kenneth Egri, 55, of Charlotte was sentenced to 78 months in prison and his co-defendant Dean Huffman, 57, formerly of Charlotte, was sentenced to 65 months in prison. U.S. District Court Judge Frank D. Whitney also ordered both defendants to serve two years of supervised release following their prison terms.
“Mortgage fraudsters like Egri and Huffman harm more than just the affected financial institutions; they wreak havoc on neighborhoods by virtue of the foreclosures resulting from their scheme” said U.S. Attorney Tompkins. “The defendants exploited the American Dream of home ownership in order to satisfy their own selfish greedy interests and they now have years of federal prison to contemplate their shameful conduct.”
“Individuals who commit mortgage fraud may be prosecuted on several charges including failure to file income tax returns. The law is crystal clear: people must pay their taxes. There is no gray area on this issue,” stated Jeannine A. Hammett, Special Agent in Charge of the Charlotte Field Office.
In July 2011, Egri and Huffman pleaded guilty to conspiracy to commit wire fraud in connection with their operation of a mortgage fraud cell that primarily targeted the neighborhood of Providence Downs. In addition, Egri pleaded guilty to two counts of failing to file income tax returns for the 2005 and 2006 tax years.
According to filed court documents and yesterday’s sentencing hearing, from in or about 2001 through in or about 2006, Egri and Huffman owned and operated Direct Home Services (DHS) in Charlotte. Egri and Huffman utilized DHS to generate over $37.4 million in fraudulent loans and to funnel over $5.4 million in fraudulent loan proceeds to themselves. To promote their scheme, Egri and Huffman would agree with a builder to purchase a property at the “true price.” Egri and Huffman would then arrange for a buyer to purchase the property at an inflated price—usually between $100,000 and $300,000 above the true price. In most circumstances, the buyer would agree to purchase the property in his or her own name and sign whatever documents were necessary, in exchange for a hidden kickback. The builder would sell the property at the inflated price, the lender would make a mortgage loan on the basis of that inflated price, and the difference between the inflated price and the true price would be extracted at closing by Egri and Huffman. To induce lenders to make mortgage loans, Egri and Huffman caused fraudulent loan packages to be submitted which included lies and misrepresentations about, among other things, buyers’ income and assets, place of employment, intent to occupy the homes as their primary residence, and true source of cash at closing.
In addition, according to the filed court documents and yesterday’s sentencing hearing, from 2003 through 2006, Egri failed to file income tax returns reporting $1,288,604 of income from the mortgage fraud scheme.
In pronouncing the sentence, Judge Whitney noted that both defendants were “integral players in the mortgage fraud scheme” and emphasized the harm their unlawful conduct caused to the community. Judge Whitney ordered Egri and Huffman to pay restitution to Bank of America in the amount of $1,335,744 and ordered Egri to pay restitution to the IRS in the amount of $257,721.
Egri and Huffman were ordered to self-report to the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation was handled by the IRS. The prosecution was handled by Assistant U.S. Attorney Mark T. Odulio, of the U.S. Attorney’s Office in Charlotte.
Member of Internet Piracy Group “IMAGiNE” Sentenced in Virginia to 23 Months in Prison for Criminal Copyright ConspiracyRead the Press Release
A member of the Internet piracy group “IMAGiNE” was sentenced today to serve 23 months in prison, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Virginia Neil H. MacBride and Special Agent in Charge John P. Torres of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) in Washington, D.C.
Javier E. Ferrer, 41, of New Port Richey, Fla., was sentenced by Senior U.S. District Judge Henry C. Morgan in the Eastern District of Virginia. In addition to his prison term, Ferrer was sentenced to serve three years of supervised release and ordered to pay $15,000 in restitution.
On Nov. 29, 2012, Ferrer pleaded guilty to one count of conspiracy to commit criminal copyright infringement. Ferrer is the fifth member of the IMAGiNE Group who has been sentenced to prison for the copyright conspiracy.
On Sept. 13, 2012, Ferrer was charged in a criminal information for his role in the IMAGiNE Group, an organized online piracy ring that sought to become the premier group to first release Internet copies of movies only showing in theaters. Four other IMAGiNE Group members, including the group’s leader, were indicted on April 18, 2012, for their roles in the IMAGiNE Group.
According to court documents, Ferrer and his co-conspirators sought to illegally obtain and disseminate digital copies of copyrighted motion pictures showing in theaters. Ferrer actively participated in the IMAGiNE Group’s illegal efforts to film copyrighted motion pictures currently showing in theaters as his co-conspirators used receivers and recording devices to secretly capture audio sound tracks of copyrighted movies playing in movie theaters. After the IMAGiNE Group obtained illegal copies of the audio and video portions of copyrighted motion pictures, Ferrer and his co-conspirators also engaged in processing or "encoding" the video files to enhance the picture quality and in synchronizing the audio files with the video files to make completed movies suitable for reproduction and distribution over the Internet, without the permission of the copyright owners.
According to testimony by a representative of the Motion Picture Association of America, the IMAGiNE Group constituted the most prolific motion picture piracy release group operating on the Internet from September 2009 through September 2011.
Co-defendants Sean M. Lovelady, Willie O. Lambert, Gregory A. Cherwonik and Jeramiah B. Perkins pleaded guilty on May 9, June 22, July 11 and Aug. 29, 2012, respectively, to one count each of conspiracy to commit criminal copyright infringement, before U.S. District Judge Arenda L. Wright Allen in the Eastern District of Virginia . Lambert and Lovelady were sentenced on Nov. 2, 2012, to serve 30 months and 23 months in prison, respectively. Cherwonik was sentenced on Nov. 29, 2012, to serve 40 months in prison. Perkins, the leader of the group, was sentenced on Jan. 3, 2013, to 60 months in prison.
The investigation of the case and the arrests were conducted by agents with the HIS Washington, D.C., Field Office. Assistant U.S. Attorney Robert J. Krask of the Eastern District of Virginia and Senior Counsel John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) are prosecuting the case. Significant assistance was provided by the CCIPS Cyber Crime Lab and the Criminal Division’s Office of International Affairs.
This case is part of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force) to stop the theft of intellectual property. Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/dag/iptaskforce .
This investigation was supported by the HSI-led National Intellectual Property Rights Coordination Center (IPR Center) in Washington. The IPR Center is one of the U.S. government's key weapons in the fight against counterfeiting and piracy. Working in close coordination with the Department of Justice’s IP Task Force, the IPR Center uses the expertise of its 21-member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and our war fighters.
Member of Internet Piracy Group "IMAGiNE" Sentenced in Virginia to 23 Months in Prison for Criminal Copyright ConspriacyRead the Press Release
Eastern District of Virginia – A member of the Internet piracy group “IMAGiNE” was sentenced today to serve 23 months in prison, announced U.S. Attorney for the Eastern District of Virginia Neil H. MacBride, Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, and Special Agent in Charge John P. Torres of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) in Washington, D.C.
Javier E. Ferrer, 41, of New Port Richey, Fla., was sentenced by Senior U.S. District Judge Henry C. Morgan in the Eastern District of Virginia. In addition to his prison term, Ferrer was sentenced to serve three years of supervised release and ordered to pay $15,000 in restitution.
On Nov. 29, 2012, Ferrer pleaded guilty to one count of conspiracy to commit criminal copyright infringement. Ferrer is the fifth member of the IMAGiNE Group who has been sentenced to prison for the copyright conspiracy.
On Sept. 13, 2012, Ferrer was charged in a criminal information for his role in the IMAGiNE Group, an organized online piracy ring that sought to become the premier group to first release Internet copies of movies only showing in theaters. Four other IMAGiNE Group members, including the group’s leader, were indicted on April 18, 2012, for their roles in the IMAGiNE Group.
According to court documents, Ferrer and his co-conspirators sought to illegally obtain and disseminate digital copies of copyrighted motion pictures showing in theaters. Ferrer actively participated in the IMAGiNE Group’s illegal efforts to film copyrighted motion pictures currently showing in theaters as his co-conspirators used receivers and recording devices to secretly capture audio sound tracks of copyrighted movies playing in movie theaters. After the IMAGiNE Group obtained illegal copies of the audio and video portions of copyrighted motion pictures, Ferrer and his co-conspirators also engaged in processing or "encoding" the video files to enhance the picture quality and in synchronizing the audio files with the video files to make completed movies suitable for reproduction and distribution over the Internet, without the permission of the copyright owners.
According to testimony by a representative of the Motion Picture Association of America, the IMAGiNE Group constituted the most prolific motion picture piracy release group operating on the Internet from September 2009 through September 2011.
Co-defendants Sean M. Lovelady, Willie O. Lambert, Gregory A. Cherwonik and Jeramiah B. Perkins pleaded guilty on May 9, June 22, July 11 and Aug. 29, 2012, respectively, to one count each of conspiracy to commit criminal copyright infringement, before U.S. District Judge Arenda L. Wright Allen in the Eastern District of Virginia. Lambert and Lovelady were sentenced on Nov. 2, 2012, to serve 30 months and 23 months in prison, respectively. Cherwonik was sentenced on Nov. 29, 2012, to serve 40 months in prison. Perkins, the leader of the group, was sentenced on Jan. 3, 2013, to 60 months in prison.
The investigation of the case and the arrests were conducted by agents with the HSI Washington, D.C., Field Office. Assistant U.S. Attorney Robert J. Krask of the Eastern District of Virginia and Senior Counsel John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) are prosecuting the case. Significant assistance was provided by the CCIPS Cyber Crime Lab and the Criminal Division’s Office of International Affairs.
This case is part of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force) to stop the theft of intellectual property. Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/iptf.
This investigation was supported by the HSI-led National Intellectual Property Rights Coordination Center (IPR Center) in Washington. The IPR Center is one of the U.S. government's key weapons in the fight against counterfeiting and piracy. Working in close coordination with the Department of Justice’s IP Task Force, the IPR Center uses the expertise of its 21-member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and our war fighters.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Man Indicted for Illegal Re-entry After DeportationRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 48-year-old Guatemalan national was indicted for entering the United States illegally after being deported as a criminal. Hector Raul Estrada-Garcia was charged with one count of illegal re-entry after deportation.
The indictment alleges that on March 7, 2013, Estrada-Garcia was found in the U.S. after having been previously deported to Guatemala in 2000, following a 1997 conviction in the District of Minnesota for distribution of methamphetamine. On March 7 of this year, Estrada-Garcia was identified in Anoka County as an illegal alien with a criminal record by the U.S. Immigration and Customs Enforcement’s (“ICE”) St. Paul Fugitive Operations Team.
If convicted, Estrada-Garcia faces a potential maximum penalty of 20 years in federal prison, followed by deportation. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by ICE’s Enforcement and Removal Operations. It is being prosecuted by Assistant U.S. Attorney John E. Kokkinen.An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Man Charged with Possession of A Firearm by A Convicted FelonRead the Press Release
Derrick Parks, 40, of Philadelphia, Pennsylvania, was charged today by Indictment with possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of ten years in prison, a three-year period of supervised release, a $250,000 fine and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Elizabeth Abrams.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Macomb Township Man Sentenced Today for Manufacturing and Distributing Child PornographyRead the Press Release
A 33-year-old Macomb Township man was sentenced today to 30 years in federal prison followed by fifteen years of supervised release after having been found guilty by a federal jury in December, 2012 of producing and distributing child pornography, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Robert D. Foley, III, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation
Thomas William Wooten was sentenced before U.S. District Judge Marianne O. Battani in Detroit. The evidence at trial showed that Wooten produced and distributed on the internet pornographic images of a three-year-old girl, including a video of her engaging in a sexual act with Wooten. Wooten also downloaded and collected hundreds of child pornographic images and videos, some of which he obtained by trading the images he created.
“Regrettably, the internet provides child predators with a ready market for child pornography, but it also helps us to rescue children who are being sexually abused,” McQuade said.
FBI Special Agent in Charge Foley stated, “These despicable crimes victimize and exploit innocent children. The FBI is committed to the arrest and prosecution of criminals who engage in such deplorable, heinous behavior.”
The case was investigated by special agents of the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Hala Jarbou.
Long Island Health Care Provider Sentenced to 12 Years in Prison for $10 Million Medicare Fraud and Hipaa Identity TheftRead the Press Release
Earlier today, Helene Michel, an owner and officer of Medical Solutions Management, Inc. (“MSM”), was sentenced to 12 years in federal prison by United States District Judge Joseph F. Bianco at the federal courthouse in Central Islip, New York. Michel was convicted after a three-week jury trial in August 2012 of conspiracy to commit health care fraud, health care fraud, and HIPAA identity theft crimes. At today’s sentencing, Judge Bianco also ordered that Michel forfeit $1.3 million that was seized by the government at the time of her indictment.
The sentences were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Thomas O’Donnell, Special Agent in Charge, United States Department of Health & Human services, Office of Inspector General, Office of Investigations (“HHS OIG”), and George C. Venizelos, Assistant Director in Charge, Federal Bureau of Investigation (“FBI”), New York Field Office.
According to the evidence at trial, between approximately April 2003 and March 2007, Helene Michel owned and operated MSM, a medical equipment company located in Hicksville, New York. Michel used her position as a medical equipment company owner to enter nursing homes in Nassau, Suffolk, Queens, Kings, and Dutchess Counties in order to access and steal patient records, in violation of the Health Insurance Portability and Accountability Act (“HIPAA”). During the scheme, Michel also falsely assumed a number of roles, including posing at various times as a doctor, a nurse practitioner, and a wound care expert. At times, in her false roles, Michel even accompanied doctors on patient evaluation rounds. Thereafter, Michel used the records that she stole to create and submit $10 million in false billings to Medicare for medical supplies and products that were either not required or not delivered. For example, in one instance, Michel used fraudulent drawings and measurements to support a Medicare claim for the cost of fitted boots for a legless patient. In another, Michel submitted false claims for the purchase of expensive wound care bandages to treat patients who never had such wounds. In the event that Medicare denied an MSM claim, Michel submitted an appeal of the denial supported by additional stolen and altered patient records.
Michel spent the Medicare funds that she stole through false claims and identity theft on her own personal interests, including a multi-million dollar home on Long Island’s North Shore, a half-million dollar pension account, and personal items such as luxury cars and designer handbags. Michel’s co-defendant Etienne Allonce, the co-owner of MSM, was also charged in the indictment and is believed to have fled from the United States. He remains a fugitive, listed on HHS OIG’s Most Wanted List.
“Helene Michel brazenly roamed the halls of dozens of nursing homes, pretending to be, among other things, a doctor, a nurse practitioner, and a wound care expert, even going so far as to join patient evaluations. In reality she was a con woman, deceiving patients and administrators alike as she trolled for the information she used to submit fraudulent claims to Medicare to support her extravagant lifestyle. Through her scheme she violated the privacy of over a thousand patients and stole Medicare funds dedicated to preserving the health of our seniors and other citizens,” stated United States Attorney Lynch. “We and our law enforcement partners will vigorously pursue and prosecute those who seek to profit by such despicable crimes.” Ms. Lynch expressed her grateful appreciation to HHS OIG, the FBI, and the Nassau County District Attorney’s Office.
The government’s case was prosecuted by Assistant United States Attorneys Charles P. Kelly and Burton T. Ryan, Jr.
The Defendant:
Name: HELENE MICHEL
Age: 45Liberty Couple Charged with $2.8 Million Embezzlement, Check Kiting Scheme to Fund Gambling, Lavish SpendingRead the Press Release
KANSAS CITY, Mo. - Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Liberty, Mo., husband and wife were charged in federal court today with a nearly $2.8 million embezzlement and check kiting scheme and with filing a false tax return.
Laura Dejong, 54, and her husband, Craig Dejong, 55, both of Liberty, waived their right to a grand jury in a hearing before U.S. Magistrate Judge John T. Maughmer and were charged in a two-count federal information. Laura Dejong is charged with one count of mail fraud and both of the Dejongs are charged in one count of filing a false tax return.
Laura Dejong allegedly embezzled $2,679,227 from her employer, Kansas City Screw Products, Inc., from January 2003 to November 2011. Kansas City Screw Products is a family-owned and -operated metal fabrication business in Kansas City. Laura Dejong, who was employed as a secretary and bookkeeper for approximately 23 years, allegedly forged checks drawn on the company’s bank accounts.
According to today’s information, Laura Dejong engaged in a check kiting scheme between the company’s two banks in order to falsely inflate the company’s bank account balances, thereby increasing the amount of money she could embezzle. Her check kite allegedly began in late June 2011. The total amount of checks written by Laura Dejong to cause the check kite increased from $44,000 in June 2011 to $847,000 in November 2011, the information says. The total loss from the check kite to Central Bank was $96,000.
The total combined loss for Kansas City Screw Products and Central Bank was $2,775,227.
According to court documents, significant gambling activity was identified for the Dejongs, well into the millions of dollars, from January 2002 to December 2011. The majority of the Dejongs’ gambling was at slot machines.
Records indicate that the Dejongs took at least eight cruises and spent more than $100,000 on payments for the cruises, vacations and airfare between 2005 and 2011. During the time of the embezzlement scheme, according to court documents, the Dejongs used the stolen money to purchase a 2007 Chevrolet Tahoe, a 2009 Honda Accord, a 1997 Crownline boat (20-foot fiberglass runabout), a 1997 Prestige boat trailer, a 1985 Chevrolet RV/motor-home (now a KC Chiefs party bus), a 2008 Jayco travel trailer, four Ameriprise Brokerage accounts; four Kansas Speedway season tickets (for Passholder seats, parking passes, and track passes), four Kansas City Chiefs Club Level season tickets and parking passes, membership to the Chiefs Wolfpack Club, an exclusive members-only facility, and their residence.
According to today’s information, the Dejongs filed joint tax returns for tax years 2005-2010 but did not declare any of the embezzled money as income. During this time, Laura Dejong’s gross annual salary at Kansas City Screw Products ranged from $22,752 to $33,333. Craig Dejong was unemployed for four years and listed no income for the two years in which he claimed to be employed as a computer programmer.
As a result of filing false tax returns in those six years, the information alleges, the Dejongs owe the Internal Revenue Service a total of approximately $482,711.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the FBI and IRS-Criminal Investigation.
Justice Department and Federal Trade Commission<br /> Accountable Care Organization Working Group<br /> Issues Summary of ActivitiesRead the Press Release
The Department of Justice and the Federal Trade Commission (FTC) issued a joint summary of the activities of the Accountable Care Organization (ACO) Working Group, which took place between October 2011 and March 31, 2013. The department and the FTC established the working group to collaborate and discuss issues concerning ACOs created under the Affordable Care Act of 2010. The act encourages physicians, hospitals and other health care providers to integrate their health care delivery systems in order to improve the quality and reduce the costs of health care services.
The summary, which follows issuance of the agencies’ October 2011 antitrust enforcement policy statement regarding ACOs participating in the Medicare Shared Savings Program (MSSP), reports that during the time period covered, the ACO Working Group fielded 33 questions related principally to primary service area (PSA) share calculations, and two requests for voluntary expedited review from proposed ACOs.
Under the policy statement, an ACO may calculate its PSA shares to determine whether it falls within an antitrust safety zone for certain ACOs that are highly likely to raise significant competitive concerns. The ACO Working Group responded to most of the 33 PSA share questions within five business days, and in connection with the release of the summary is now making the questions and answers publicly available on their websites. The largest category of questions concerned obtaining and using Medicare and other data to calculate PSA shares.
Also under the policy statement, a newly formed ACO may request voluntary expedited antitrust review of its program. Both of the ACOs that sought such review during the time period covered by the summary withdrew their requests.
The joint summary and questions and answers can be found on the department’s website at www.justice.gov/atr/public/health_care/aco.html.
MEDIA CONTACT: Gina Talamona
Department of Justice
Office of Public Affairs
202-514-2007
Mitch Katz
FTC
Office of Public Affairs
202-326-2180
Justice Department Settles Race and National Origin Lawsuit Against Lee County, FloridaRead the Press Release
The Justice Department announced today that it has reached a settlement with Lee County, Fla. that, if approved by the district court, will resolve allegations that the county discriminated against three Hispanic employees on the basis of race and national origin in violation of Title VII of the Civil Rights Act of 1964, as amended.
The department’s complaint, previously filed in the Middle District of Florida, alleged that Lee County discriminated against Facilities Management Tradesworkers Leonides Sepulveda, Marco Ferreira, and Eduardo Rivera by subjecting them to racial and ethnic harassment. According to the complaint, from early 2007 through January 2009, the three employees were regularly subjected to racial and ethnic slurs by several of their co-workers. The discriminatory actions by co-workers included mocking Ferreira’s and Rivera’s accents, and making false accusations against Ferreira and Rivera to Lee County’s Office of Equal Opportunity in an effort to have the county terminate the two employees. The complaint further alleged that despite timely complaints about the harassment by the employees to their supervisors, as well as the supervisors’ direct observation of the harassment, Lee County failed to take any meaningful action to stop the harassment until January 2009, when the harassers were terminated. After the United States filed suit against Lee County, the three employees who were allegedly subjected to race and national original discrimination intervened in the lawsuit.
Under the terms of the settlement agreement, which must still be approved by the federal district court, the county is required to review and, if appropriate, revise its anti-discrimination policies for its workforce to protect its employees from discrimination. The county must also provide mandatory equal employment opportunity training to all Facilities Management employees that includes an emphasis on preventing race and national origin discrimination in the workplace. The settlement agreement also requires the county to pay the three affected employees $292,500 in monetary relief, including compensatory damages and attorney’s fees.
“Title VII ensures that employees have the right to work in an environment free of harassment based on their race and national origin,” said Jocelyn Samuels, Principal Deputy Assistant Attorney General for the Civil Rights Division. “This settlement demonstrates the Civil Rights Division’s commitment to eradicate discriminatory harassment from the workplace.”
The continued enforcement of Title VII has been and remains a priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.usdoj.gov/crt/ .
Justice Department Seeks to Shut Down Mo’ Money Taxes Return-Preparation Firm and Its OwnersRead the Press Release
The United States has filed a civil injunction lawsuit seeking to shut down Mo’ Money Taxes, a Memphis, Tenn., based tax-preparation chain that at one time operated as many as 300 offices in 18 states, the Justice Department announced today. The United States accuses Mo’ Money Taxes and its owners, Markey Granberry and Derrick Robinson, and store manager Eumora Reese of creating and maintaining a business environment that encourages the preparation of fraudulent federal income tax returns.
The government suit alleges that the defendants promote a culture that favors volume and profits over accuracy and integrity, and creates an environment where fraudulent return preparation and tax-law violations flourish. According to the complaint, Mo’ Money Taxes’ managers, licensees and employees prepare fraudulent returns that cause their customers to incorrectly report their federal tax liabilities and underpay their taxes and charge customers bogus and unconscionably high fees.
The complaint alleges that the defendants style themselves as savvy marketers and promoters of the Mo’ Money Taxes brand and image – as evidenced by their commercials – and that Granberry and Robinson decided to change the business’s name following bad publicity in 2012 surrounding customer allegations that Mo’ Money Taxes failed to provide tax refunds to customers in a reasonable amount of time, if at all. According to the complaint, Granberry and Robinson now do business under the name Marquis Taxes and, along with Reese, under the name Southern King Taxes.
According to the complaint, the defendants encourage Mo’ Money preparers to
· Falsely claim the earned-income credit;
· Claim improper filing status;
· Claim bogus education credits;
· Improperly prepare returns using paystubs rather than employer-issued W-2 forms;
· Fabricate bogus W-2 forms;
· File tax returns without customers’ consent;
· Sell false and deceptive loan products; and
· Charge deceptive and unconscionable fees.
The complaint cites alleged examples of Mo’ Money Taxes customers in Memphis; Atlanta; Richmond, Va.; Jackson, Miss.; and Nashville, Tenn., whose returns had such fraudulent claims. The complaint also refers to several state-government actions related to Mo’ Money Taxes’ sale of refund-anticipation loans and charging of undisclosed or improper fees.
The complaint alleges that the estimated tax loss from fraudulent tax return preparation at Mo’ Money Taxes offices in Memphis, Atlanta, Richmond and Jackson in 2011 exceeds $9 million.
Return preparer fraud, claiming false income or expenses to secure larger refundable credits such as the earned-income credit, and identity theft are among the IRS’s “ Dirty Dozen ” Tax Scams for 2013.
“The nation’s tax system relies on the integrity of tax preparers,” said Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division. “Most tax preparers are honest. We owe it to them and to all American taxpayers to use appropriate law enforcement tools to stop those who prepare fraudulent tax returns or who lure customers with deceptive loan products.”
“Americans understand that the timely and equitable collection of tax revenues is essential to ensuring the financial security of our citizens and nation as a whole,” said Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee. “Those who abuse the tax filing process by fraudulently diverting public revenues into their own pockets are essentially stealing from every American and should expect to be held accountable to the fullest extent of the law.”
The United States previously obtained a permanent injunction against Toney Fields and Trumekia Shaw, who operated a Mo’ Money Taxes location in Nashville.
In the past decade the Justice Department’s Tax Division has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters. Information about these cases is available on the Justice Department website . For more information about choosing a tax return preparer, see the IRS website and the IRS YouTube Channel.
Related Materials:
United States v. Markey Granberry, et al.
Complaint for Permanent Injunction and Other Relief (PDF)Joplin Woman Pleads Guilty to Disaster Fraud Related to Tornado BenefitsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Joplin, Mo., woman pleaded guilty in federal court today to fraudulently receiving federal disaster benefits following the May 22, 2011 tornado.
Amy Cherie Feagan, 28, formerly of Joplin, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a Dec. 13, 2012 federal indictment.
Feagan admitted that she applied for disaster assistance in June 2011. On June 3, 2011, Feagan met a FEMA inspector at a tornado-damaged apartment building in Joplin. Feagan completed an inspection, claiming to the inspector that the apartment building was her primary residence and answering his questions regarding her “residence.” Based on those representations, FEMA authorized an $11,764 payment to replace the contents of her claimed residence as well as numerous household items for herself and her children.
Feagan admitted today, however, that she did not reside in that apartment building at the time of the disaster. She had previously resided at that apartment, but moved some time earlier. At the time of the Joplin tornado, Feagan resided in transitional housing in Springfield following her release from incarceration.
By pleading guilty, Feagan admitted that she knowingly and fraudulently made materially false, fictitious, and fraudulent statements and representations to FEMA in connection with her application for disaster assistance.
Under federal statutes, Feagan is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the Department of Homeland Security-Office of Inspector General, the FBI and the Joplin, Mo., Police Department.
Disaster Fraud Hotline
Anyone with information about disaster fraud related to the Joplin tornado should call the National Center for Disaster Fraud hotline at 866-720-5721, the Joplin Police Department at 417-623-3131, or the FBI’s Joplin office at 417-206-5700.
Husband and Wife Guilty of Falsifying Client Tax ReturnsRead the Press Release
HOUSTON – Marlin Jermaine Beckett and Gia Cooper Beckett have been convicted of tax fraud, United States Attorney Kenneth Magidson announced today along with Lucy Cruz, special agent in charge of Internal Revenue Service – Criminal Investigation (IRS-CI).
The Becketts are husband and wife tax return preparers. Both were charged in separate, but related cases just last month. According to the factual basis in support of their respective pleas, they each admitted they claimed false business mileage deductions for local clients that fraudulently increased tax refunds by approximately $360,000 for tax years 2006 through 2009.
Just a short time ago, Marlin Beckett entered a guilty plea before U.S. District Judge Nancy F. Atlas, while Gia Beckett pleaded guilty last week. Both are set for sentencing on Sept. 24, 2013, at which time, each faces up to three years in prison and $250,000 fine. The plea agreement also requires that both defendants make full restitution for all of the fraudulent refunds.
The investigation leading to these charges was conducted by IRS-CI. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the case.
Guilty Pleas Entered in Family-Run Tax Fraud SchemeRead the Press Release
BROWNSVILLE, Texas – Judy Lynn McCune, Loretta Ann McCune and Rania Ann Sanchez have pleaded guilty for conspiring to defraud the federal government in a scheme to prepare federal tax returns and cash refund checks in the name of deceased individuals, United States Attorney Kenneth Magidson announced today along with Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Lucy Cruz.
Loretta Ann McCune and Sanchez entered their pleas just moments ago before U.S. District Judge Andrew S. Hanen, while Judy Lynn McCune pleaded guilty on April 8, 2013.
Judy Lynn McCune admitted she recruited members of her family, including her mother, Loretta Ann McCune, and her sister, Sanchez, into the scheme. The conspiracy involved obtaining Social Security numbers and dates of birth for deceased individuals through the Internet and then filing both paper and electronic federal income tax returns using the identifiers of these deceased individuals. The refunds were directly deposited in the personal bank account or mailed to the personal addresses of the accused. The total scheme consisted of approximately 340 false claims totaling $763,124 in filed false claims.
The three women face up to 10 years in federal prison as well as a possible $250,000 fine at their sentencing, which has been set for July 15, 2013, at 8:30 a.m. before Judge Hanen. They were permitted to remain on bond pending that hearing.
Robert and Edward Gutierrez, Judy Lynn McCune’s sons, are also charged in the scheme and are currently set for trial in June 2013. They are presumed innocent unless convicted through due process of law.
The case was investigated by IRS-CI and is being prosecuted by Assistant United States Attorney Karen Betancourt.
Grand Jury Indictments Broaden Alleged Fraud Charges Related to $1.25 Million GrantRead the Press Release
SPRINGFIELD, Ill. – Three indictments returned today by the grand jury in Springfield, Ill., collectively broaden allegations of fraud related to a $1.25 million state grant awarded in 2009 to We Are Our Brother’s Keeper, a not-for-profit program owned by Regina R. Evans, former police chief for Country Club Hills, Ill., and her husband, Ronald W. Evans, Jr., also formerly employed with the Country Club Hills Police Department. The grant agreement provided for an estimated 40 participants to receive bricklaying and electrical pre-apprenticeship training and GED preparation, at the Regal Theater, another entity owned by the Evanses.
Regina, 50, and her husband, Ronald Evans, 45, are charged in a third superseding indictment with fraudulent use of grant funds, specifically wire fraud (three counts), money laundering (seven counts each), and conspiracy to commit wire fraud and money laundering (one count). According to the indictment, at the time of the alleged fraud, from February 2009 to June 2010, Regina and Ronald Evans owned various for-profit and not-for-profit entities, including the Prime Time Group, Inc., the Regal Theater, LLC., and We Are Our Brother’s Keeper (WAOBK.) In February 2009, on behalf of WAOBK, Evans and her husband applied for grant funding offered under the Employment Opportunities Grant Program and administered by the Illinois Department of Commerce and Economic Opportunity (DCEO.) In September 2009, DCEO disbursed the $1,250,000 award for the two-year period, beginning on June 1, 2009, and ending on May 31, 2011. In fact, the indictment alleges that little, if any, of the training provided in the grant agreement, was ever completed.
Following the return of a prior superseding indictment against the Evanses, in June 2012, the grand jury investigation continued relating to unindicted offenses and persons, including potential money laundering offenses. The investigation included a review of more than $100,000 in checks issued by the Evanses and Ricky McCoy, Regina Evans’ brother, involving grant funds and made payable to various associates of the Evanses, including McCoy and Jeri L. Wright, purportedly for work done by associates under the grant program. The indictment alleges that more than $60,000 from the proceeds of the checks was deposited back into accounts which the Evanses controlled.
Another indictment returned today charges Jeri L. Wright, 47, of Hazel Crest, Ill., with money laundering (two counts), making false statements to federal law enforcement officers (two counts), and giving false testimony before a grand jury (seven counts), related to the investigation of the alleged fraudulent use of grant funds.
According to the indictment, Wright, a close friend and associate of the Evanses, allegedly received three checks in November 2009, totaling approximately $28,000, purporting to be for work related to the grant, and approximately $20,000 of the proceeds of the checks was allegedly deposited back into accounts controlled by the Evanses. The indictment further alleges that Wright made false statements to federal law enforcement officers when she was interviewed on various occasions in 2012, and that on Nov. 7, 2012, Wright made materially false statements to the grand jury.
A third, related indictment returned today charges Regina Evans, and her brother, Ricky McCoy, 52, of Chicago, with obstruction of justice, witness tampering, and conspiracy to obstruct justice and witness tampering, related to the ongoing investigation of the alleged fraudulent use of grant funds. In addition, McCoy is charged with three counts of money laundering. According to the indictment, McCoy served as the executive director of We Are Our Brother’s Keeper. The indictment alleges that on Nov. 12, 2009, a check in the amount of $16,249 was issued to McCoy, cashed, and the check’s proceeds deposited into a bank account controlled by the Evanses. Regina Evans and McCoy were previously charged by complaint with the charges related to obstruction and witness tampering. As a result of the additional charges filed in the criminal complaint, on Mar. 29, 2013, U.S. Magistrate Judge Byron Cudmore ordered that Evans be detained pending trial and her bond was revoked.
Assistant U.S. Attorney Timothy A. Bass is prosecuting the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois. The ongoing investigation is being conducted by participating agencies of the Central District of Illinois’ U.S. Attorney’s Office’s Public Corruption Task Force including the U.S. Postal Inspection Service, Chicago Division; the Internal Revenue Service Criminal Investigations; and, the Illinois Secretary of State Office of Inspector General. The Illinois Department of Commerce and Economic Development is also cooperating in the investigation. Individuals who wish to provide information to law enforcement regarding matters of public corruption are urged to call the U.S. Attorney’s Office at 217-492-4450.
If convicted, the maximum statutory penalty for each count of the various offenses charged is as follows: wire fraud - up to 20 years in prison; money laundering - up to 20 years in prison; obstruction of justice – up to 10 years in prison; witness tampering – up to 20 years in prison; conspiracy to obstruct justice and witness tampering – up to five years in prison; making a false statement to a federal law enforcement officer – up to five years in prison; providing false testimony before a grand jury – up to five years in prison. If convicted, Regina Evans faces additional penalties of up to 10 years in prison to be served consecutive to any sentence ordered for the underlying offenses because the offenses were allegedly committed while the defendant was on pre-trial release.
Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty.
Georgia Resident Enters Plea to Cocaine ChargeRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
MARTINSBURG, WEST VIRGINIA — A 35-year old Stone Mountain, Georgia, resident entered a plea of guilty on April 9, 2013, in United States District Court in Martinsburg before Magistrate Judge David J. Joel.
United States Attorney William J. Ihlenfeld, II announced that: CHRISTOPHER MICHAEL ROOF entered a plea of guilty to “Possession with Intent to Distribute Cocaine Base and Cocaine Hydrochloride” in Martinsburg, West Virginia. ROOF, who is in custody pending sentencing currently scheduled for July 22, 2013, faces up to 20 years imprisonment and a $1,000,000 fine. This case was prosecuted by Assistant United States Attorneys Stephen L. Vogrin and former Assistant United States Attorney Thomas O. Mucklow and investigated by the Martinsburg Police Department.
Fridley Man Indicted for Transporting Others to Engage in ProstitutionRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 27-year-old Fridley man was indicted for transporting another to engage in prostitution, pursuant to federal law. Napoleon Long, Jr., was charged with one count of enticing another for interstate travel to engage in prostitution and one count of transportation with intent to engage in prostitution. Federal law prohibits the interstate transportation of individuals for the purpose of prostitution.
The indictment alleges that in October 2011, Long, also known as Nate, persuaded a woman to travel to Colorado for the purpose of engaging in prostitution.
If convicted, Long faces a potential maximum penalty of 20 years in prison. All sentences would be determined by a federal district court judge. This case is the result of an investigation by the Anoka County Sheriff’s Office and United States Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant U.S. Attorney David P. Steinkamp.
In 2012, Yuri Fedotov, the head of the United Nations’ Office on Drugs and Crime reported to those attending a U.N. General Assembly meeting that an estimated 2.4 million people worldwide are victims of human trafficking at any one time, with 80 percent of them being exploited as sex slaves. He also said approximately $32 billion is earned collectively every year by the criminals who operate human trafficking networks. The U.S. Department of Justice reports that an estimated 14,500 to 17,500 people are trafficked within the U.S. alone each year.
For more information, visit http://www.ice.gov/human-trafficking/An indictment is a determination by a grand jury that there is probable cause to believe that offenses have been committed by a defendant. A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Four Harrison County Residents Sentenced on Crack Cocaine ChargesRead the Press Release
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CLARKSBURG, WEST VIRGINIA - Four Harrison County Residents were sentenced on April 9, 2013, in United States District Court in Clarksburg by Judge Irene M. Keeley.
United States Attorney William J. Ihlenfeld, II, announced that:
TYQUAY WILLIAMS a/k/a “LOON,” age 20 of Clarksburg, was sentenced to 97 months imprisonment to be followed by six years of supervised release. WILLIAMS entered a plea of guilty on December 7, 2012, to “Distribution of Crack Cocaine within 1,000 Feet of Monticello Avenue Park Playground” on March 5, 2012. WILLIAMS, was remanded to the custody of the United States Marshal pending designation to a Federal institution.
DANTE DUPREE, age 40, of Bridgeport, West Virginia, was sentenced to 63 months imprisonment to be followed by six years of supervised release. DUPREE entered a plea of guilty on November 28, 2012, to “Distribution of Crack Cocaine within 1,000 Feet of Glen Elk City Park” on June 21, 2012. DUPREE was remanded to the custody of the United States Marshal pending designation to a Federal institution.
BRADLEY HUTSON, age 53, of Clarksburg, was sentenced to 63 months imprisonment to be followed by six years of supervised release. HUTSON entered a plea of guilty on November 28, 2012, to “Distribution of Crack Cocaine within 1,000 Feet of Glen Elk City Park” on March 22, 2012. HUTSON’s sentenced was increased due to his drug usage while on pretrial release. HUTSON was remanded to the custody of the United States Marshal pending designation to a Federal institution.
REBECCA POWELL, age 50, of West Milford, West Virginia, was sentenced to 33 months imprisonment to be followed by six years of supervised release. POWELL entered a plea of guilty on December 4, 2012 to “Distribution of Crack Cocaine within 1,000 Feet of Glen Elk City Park” on March 22, 2012. POWELL, who is free on bond, will self-report to the designated Federal institution on May 9, 2013.
These cases were prosecuted by Criminal Chief Shawn A. Morgan and investigated by the Harrison County Drug Task Force consisting of officers from the Clarksburg Police Department, the Harrison County Sheriff’s Department and the Bridgeport Police Department.
Former Union Leader Sentenced for Theft of Union FundsRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Joseph R. Grygorcewicz , 63, of Amherst, N.Y., who was convicted of embezzlement and theft of labor union assets, was sentenced to three years probation by Chief U.S. District Court Judge William M. Skretny.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the case, stated that
while working as the elected Secretary-Treasurer of Local 1566, a union which represents railroad workers in the transportation industry, Grygorcewicz embezzled $39,989.72 in union funds. As Secretary-Treasurer, Grygorcewicz had check writing authority and access to the checking account of Local 1566. The defendant wrote checks to himself and forged the signature of the president of the union to illegally obtain the money. Of the amount that Grygorcewicz embezzled, $14,020.94 was paid back to the union before the crime was discovered.
The sentencing is the culmination of an investigation on the part of investigators from the United States Department of Labor, Office of Labor-Management Standards, under the direction of Joseph Wasik, District Director of the Buffalo District Office.Former Loan Officer Convicted of Fraud and Identity Theft Related to Mortgage Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – Following a six-day jury trial, Nicholas Lindsey, 40, of, Billings, Montana, was convicted today of nine counts of wire fraud and one count of aggravated identity theft for his role in a mortgage fraud scheme, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
“Many innocent homeowners in Nevada have suffered because of this type of crime involving fraudulent residential mortgage transactions,” said U.S. Attorney Bogden. “Since 2008 when the FBI and our office made mortgage fraud prosecutions a priority, we have investigated, charged and convicted hundreds of persons for federal mortgage fraud crimes and most of them are now serving time in federal prison.”
According to the indictment and evidence presented to the jury during the trial, from about May to September 2006, Lindsey, who worked as a loan officer for Clear Mortgage and Signature Mortgage, recruited straw buyers to participate in what he described as a lucrative real estate investment opportunity by purchasing five homes in the Las Vegas area. Evidence at trial demonstrated that Lindsey secured over $3 million in mortgage loans by knowingly causing to be placed in the straw buyers’ mortgage loan applications false information concerning the buyers’ income, assets, and intent to occupy the homes. Once the mortgages were approved, Lindsey fraudulently diverted to his bank account a portion of the proceeds disbursed from escrow and used these funds for his own benefit. Lindsey realized additional profits by living in or renting out properties in the buyers’ names.
In addition to the five homes of which the buyers were aware, Lindsey stole two buyers’ identities and used their personal information to purchase three additional properties in their names. The evidence established that Lindsey leased two of these properties and collected rental income and used the third as his own personal residence. After collecting profits, Lindsey stopped making the mortgage payments on the properties and allowed all eight homes to default in the borrowers’ names, causing an estimated loss to lenders of $1.6 million.
Lindsey was ordered detained pending sentencing. He is scheduled to be sentenced by Senior U.S. District Judge Lloyd D. George on July 22, 2013, at 9:00 a.m. He faces up to 30 years in prison on each fraud count, as well as two years in prison on the aggravated identity theft count, which must be served consecutively to any prison term ordered on the fraud counts. He also faces fines of up to $1 million on each count.
The case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Christina Brown and Department of Justice Trial Attorney Brian Young.
This case was handled in connection with the President's Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.Former Hockey Association Treasurer Sentenced for Tax EvasionRead the Press Release
MINNEAPOLIS— Earlier today in federal court in St. Paul, a former Minnesota Amateur Hockey Association, District 2, treasurer was sentenced for evading his personal income taxes in 2010. United States District Court Judge Richard H. Kyle sentenced Steven Brier to eight months in prison on one count of tax evasion. Brier was charged on December 4, 2012, and pleaded guilty on December 17, 2012.
In his plea agreement, Brier admitted from April 2005 through September 2011, he stole at least $384,000 during his time as treasurer for the Minnesota Amateur Hockey Association, District 2. As treasurer, Brier had signature authority for the District 2 bank accounts and only one signature was required on the checks issued by the Association. Brier acknowledges that he wrote unauthorized checks to himself from District 2’s bank account. The treasurer position was not a paid position, so Brier was only supposed to receive money from the Association for reimbursable expenses paid out-of-pocket. To avoid detection and to make the checks look legitimate, Brier wrote “scheduling” and “playoff expense” in the memo line to make it appear that the checks were reimbursements of expenses he paid out-of-pocket.Over the years, Brier tried to pay back the amounts he owed before anyone found out. However, the defendant still owes District 2 much of the money that he stole. Brier tried to gamble at various casinos in an attempt to win back the money he owed to the Association.
During the tax year 2010, Brier evaded his personal income taxes by approximately $74,473. Brier also acknowledges that he attempted to evade his personal income taxes by approximately $240,396 during tax years 2007 through 2010. Brier failed to inform his return preparer of the money he took from District 2. Since Brier calculated his business income and expenses for his return preparer, he did not have to submit his business or personal bank statements, which would have shown the deposits from District 2. Brier agrees that the tax loss resulting from his evasion is at least $68,000 for the tax years 2007 through 2010.
This case was the result of an investigation by the Internal Revenue Service-Criminal Investigations. It was prosecuted by Assistant U.S. Attorney Kevin S. Ueland.
Per U.S. Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for defendants charged in criminal tax cases.Five Indicted in Armed Robbery Conspiracy in Which Two Victims Were ShotRead the Press Release
Charges the Result of Investigation by the FBI’s Cross Border Task ForceGreenbelt, Maryland - A federal grand jury has returned a superseding indictment today charging five men in connection with a series of armed robberies, including an armored car robbery and a carjacking in which a victim was shot.
The following defendants are charged in the indictment:
Tonnie Floyd, age 21.;
Marcellus Ramone Freeman, a/k/a Derrick Relando Pitts, age 22;
Anthony Terrell Cannon, age 23.;
Keith Willie Reed, age 23; and
Tobias Richard Dyer, age 21.
Floyd, Freeman, Cannon and Reed are all from Washington, D.C. Dyer is from Upper Marlboro, Maryland.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; the members of the FBI Cross Border Task Force - Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Assistant Director in Charge Valerie Parlave of the Federal Bureau of Investigation - Washington Field Office; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Cathy L. Lanier of the Metropolitan Police Department; and by Chief Alan Goldberg of the Takoma Park Police Department.
The 10-count indictment alleges that between October 26 and December 11, 2012, the defendants planned and organized armed robberies and other crimes of violence, used stolen vehicles in the commission of the crimes and attempted to conceal their identities.
Specifically, the indictment alleges that on October 26, 2012, after obtaining a stolen vehicle and arming themselves, Floyd, Freeman and Cannon robbed a Garda employee at gunpoint outside a store in the 1300 block of University Boulevard in Takoma Park. During the robbery, the defendants stole approximately $3,911 and fired a gun. They attempted to escape in the stolen vehicle, but were unable to do so when the car was disabled. The defendants then allegedly carjacked another vehicle, shooting the driver. According to the indictment, Floyd, Freeman and Cannon fled into Washington, D.C., where they set the vehicle on fire and continued their escape.
On December 11, 2012, Reed, Dyer and Cannon allegedly obtained stolen vehicles and armed themselves, then attempted to rob the BB&T Bank on S. Glebe Road in Arlington, Virginia. The indictment alleges that Reed, Dyer and Cannon then robbed a Loomis employee at gunpoint outside a store in the 6300 block of Linvingston Road in Oxon Hill, Maryland. After shooting the employee, the defendants allegedly stole $2,350 and the .40 caliber semi-automatic handgun belonging to the Loomis employee, then took the stolen vehicles into Washington, D.C., where they were abandoned.
The defendants face a maximum sentence of 20 years in prison for the conspiracy and for each count of armed robbery; a maximum of life in prison for using, carrying and discharging a weapon during a crime of violence; and a maximum of 10 years in prison for interstate transportation of a stolen vehicle. Floyd, Freeman and Cannon also face a maximum of 25 years in prison for carjacking. An initial appearance has been scheduled for Freeman on April 16, 2013, in U.S. District Court in Greenbelt. Initial appearances for the remaining defendants have not yet been scheduled. The defendants are detained pending trial.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later crimina proceedings.
United States Attorney Rod J. Rosenstein praised the FBI Baltimore and Washington Field Offices, the Prince George’s County and Montgomery County Police Departments, the Metropolitan Police Department and the Takoma Park Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Steven E. Swaney, who are prosecuting the case.
Fifty-Seven Charged with Operating <br /> Illegal Online Sports Gaming BusinessRead the Press Release
Thirty-four individuals and 23 entities have been indicted and accused of operating an illegal sports bookmaking business that solicited more than $1 billion in illegal bets, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney for the Western District of Oklahoma Sanford C. Coats.
“These defendants allegedly participated in an illegal sports gambling business, lining their pockets with profits from over a billion dollars in illegal gambling proceeds,” said Acting Assistant Attorney General Raman. “Today’s charges demonstrate that we are as determined as ever to hold accountable those involved in facilitating illegal online gambling by U.S. citizens, regardless of where the business operates, or where the defendants reside.”
“The defendants cannot hide the allegedly illegal sports gambling operation behind corporate veils or state and international boundaries,” said U.S. Attorney Sanford C. Coats. “I thank the IRS and FBI for their diligent work over several years to investigate this billion dollar international gambling enterprise.”
According to the indictment, Bartice Alan King, aka “Luke” and “Cool,” 42, of Spring, Texas, conspired with others to operate internet and telephone gambling services first from San Jose, Costa Rica and then from Panama City, which took wagers almost exclusively from gamblers in the United States seeking to place bets on sports. Known since 2003 as Legendz Sports, the enterprise allegedly used bookies located in the United States to illegally solicit and accept sports wagers as well as settle gambling debts.
The 34 defendants are alleged to have been employees, members and associates of the ongoing Legendz Sports enterprise. The 23 corporate defendants are alleged to have been used by Legendz Sports to facilitate gambling operations, operate as payment processors, own websites and domain names used in the enterprise, launder gambling funds and make payouts to gamblers.
The indictment alleges that Legendz Sports sought to maximize the number of gamblers who opened wagering accounts by offering both “post-up” betting, which requires a bettor to first set up and fund an account before placing bets and “credit” betting, which allowed the bettor to place a wager without depositing money in advance through face-to-face meetings with bookies or agents.
The indictment alleges that Legendz Sports solicited millions of illegal bets totaling over $1 billion.
“These defendants allegedly participated in an illegal sports gambling business, lining their pockets with profits from over a billion dollars in illegal gambling proceeds,” said Acting Assistant Attorney General Raman. “Today’s charges demonstrate that we are as determined as ever to hold accountable those involved in facilitating illegal online gambling by U.S. citizens, regardless of where the business operates, or where the defendants reside.”
“The defendants cannot hide the allegedly illegal sports gambling operation behind corporate veils or state and international boundaries,” said U.S. Attorney Sanford C. Coats. “I thank the IRS and FBI for their diligent work over several years to investigate this billion dollar international gambling enterprise.”
“Individuals cannot skirt the laws of the United States by setting up illegal internet gambling operations in a foreign country, while living in the United States and enjoying all the benefits of U.S. citizens,” said Jim Finch, Special Agent in Charge of the FBI Oklahoma City Field Office. “The FBI, along with our law enforcement partners, will continue to be diligent in investigating such violations of federal law.”
“Combining the financial investigative expertise of the IRS with the skills and resources of the FBI makes a formidable team for combating major, greed-driven crimes,” said Andrea D. Whelan, Internal Revenue Service Special Agent in Charge. “This massive indictment is the result of our highly effective law enforcement partnership.”
If convicted, the defendants face up to 20 years in prison for racketeering, up to 20 years in prison for conspiring to commit money laundering, up to 10 years in prison for money laundering and up to five years in prison for operating an illegal gambling business.
In addition, the indictment seeks a forfeiture money judgment of at least $1 billion traceable to numerous specific assets that include real estate, bank accounts, brokerage and investment accounts, certificates of deposit, individual retirement accounts, domain names, a Sabreliner aircraft, a gas lease and vehicles.
The public is reminded that the indictment is merely an accusation and that the defendants are each presumed innocent unless and until proven guilty.
This case is the result of an investigation by the FBI and Internal Revenue Service-Criminal Investigation, with the assistance of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorneys Susan Dickerson Cox and William Lee Borden Jr., from the Western District of Oklahoma and Trial Attorney John S. Han with the Department of Justice Criminal Division Organized Crime and Gang Section.For further information, reference is made to the 95-page indictment which can be found at www.justice.gov/usao/okw/index.html.
Fifty-Seven Charged with Operating Illegal Online Sports Gaming BusinessRead the Press Release
Indictment Seeks Forfeiture Money Judgment of $1 Billion
Oklahoma City, Oklahoma -- Thirty-four individuals and 23 entities have been indicted and accused of operating an illegal sports bookmaking business that solicited more than $1 billion in illegal bets.
United States Attorney Sanford C. Coats for the Western District of Oklahoma and Acting Assistant Attorney General Mythili Raman of the Criminal Division made the announcement after the indictment was unsealed.
"The defendants cannot hide the allegedly illegal sports gambling operation behind corporate veils or state and international boundaries," said U.S. Attorney Sanford C. Coats. "I thank the IRS and FBI for their diligent work over several years to investigate this billion dollar international gambling enterprise."
"These defendants allegedly participated in an illegal sports gambling business, lining their pockets with profits from over a billion dollars in illegal gambling proceeds," said Acting Assistant Attorney General Raman. "Today's charges demonstrate that we are as determined as ever to hold accountable those involved in facilitating illegal online gambling by U.S. citizens, regardless of where the business operates, or where the defendants reside."
According to the indictment, Bartice Alan King, aka "Luke" and "Cool," 42, of Spring, Texas, conspired with others to operate internet and telephone gambling services first from San Jose, Costa Rica, and then from Panama City, Panama, which took wagers almost exclusively from gamblers in the United States seeking to place bets on sports. Known since 2003 as Legendz Sports, the enterprise allegedly used bookies located in the United States to illegally solicit and accept sports wagers as well as settle gambling debts.
The 34 defendants are alleged to have been employees, members and associates of the ongoing Legendz Sports enterprise. The 23 corporate defendants are alleged to have been used by Legendz Sports to facilitate gambling operations, operate as payment processors, own websites and domain names used in the enterprise, launder gambling funds, and make payouts to gamblers.
The indictment alleges that Legendz Sports sought to maximize the number of gamblers who opened wagering accounts by offering both "post-up" betting, which requires a bettor to first set up and fund an account before placing bets, and "credit" betting, which allowed the bettor to place a wager without depositing money in advance through face-to-face meetings with bookies or agents.
The indictment alleges that Legendz Sports solicited millions of illegal bets totaling over $1 billion.
If convicted, the defendants face up to 20 years in prison for racketeering, up to 20 years in prison for conspiring to commit money laundering, up to 10 years in prison for money laundering, and up to five years in prison for operating an illegal gambling business.
In addition, the indictment seeks a forfeiture money judgment of at least $1 billion traceable to numerous specific assets that include real estate, bank accounts, brokerage and investment accounts, certificates of deposit, IRA, domain names, a Sabreliner aircraft, a gas lease, and vehicles.
"Individuals cannot skirt the laws of the United States by setting up illegal internet gambling operations in a foreign country, while living in the United States and enjoying all the benefits of U.S. citizens," said Jim Finch, Special Agent in Charge of the FBI Oklahoma City Field Office. "The FBI, along with our law enforcement partners, will continue to be diligent in investigating such violations of federal law."
"Combining the financial investigative expertise of the IRS with the skills and resources of the FBI makes a formidable team for combating major, greed-driven crimes," said Andrea D. Whelan, Internal Revenue Service Special Agent in Charge. "This massive indictment is the result of our highly effective law enforcement partnership."
The public is reminded that the indictment is merely an accusation and that the defendants are each presumed innocent unless and until proven guilty.
This case is the result of an investigation by the FBI and Internal Revenue Service-Criminal Investigation, with the assistance of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorneys Susan Dickerson Cox and William Lee Borden, Jr., from the Western District of Oklahoma and Trial Attorney John S. Han with the Department of Justice Criminal Division Organized Crime and Gang Section.
Federal Jury Convicts St. Paul Felon for Possessing A Nine-millimeter PistolRead the Press Release
MINNEAPOLIS—Earlier today in federal court in St. Paul, a jury found a 36-year-old felon guilty of possessing a nine-millimeter pistol. Following a three-day trial, the jury convicted Christopher Sean Daniels, of St. Paul, on one count of being a felon in possession of a firearm. Daniels was indicted on October 1, 2012.
Evidence presented at trial proved that on September 3, 2012, Daniels possessed a Smith & Wesson, nine-millimeter pistol. Because he is a felon, Daniels is prohibited under federal law from possessing a firearm at any time. Daniels was previously convicted in Illinois in 1995 and 1997 for delivery of a controlled substance. In addition, he was convicted in Hennepin County in 2006 for being a felon in possession and for second-degree assault. And in 2010, he was convicted in Anoka County for fourth-degree assault. Since all of those prior offenses were crimes of violence or major drug crimes, Daniels is now subject to the federal Armed Career Criminal Act. That act mandates a minimum of 15 years in federal prison. United States District Court Judge Donovan W. Frank will determine his actual sentence at a future hearing, yet to be scheduled.This case is the result of an investigation by the St. Paul Police Department, and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorneys Julie E. Allyn and John E. Kokkinen.
Federal Judge Sentences Pittsburgh Heroin Dealer to 25 Years in PrisonRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh was sentenced on April 9, 2013, in federal court for violating federal narcotics trafficking and firearm laws, United States Attorney David J. Hickton announced today.
Harold Bacon, 30, was sentenced to serve 25 years in prison followed by eight years of supervised release by United States District Judge Arthur J. Schwab. From at least Jan. 18, 2010, when 18 bricks of heroin were seized from his rental car by Pittsburgh police detectives to March 3, 2011, when he was arrested after being indicted in federal court, Bacon supplied brick after brick of heroin to other heroin dealers. Bacon used young runners to store and distribute heroin for him and he used a female to pick up and transport hundreds of bricks of heroin from outside Pennsylvania to Pittsburgh.
In addition, on June 17, 2010, Bacon possessed a Desert Eagle .40 caliber pistol in furtherance of a drug trafficking crime. Bacon obtained the Desert Eagle pistol on that date in return for heroin. Bacon then attempted to transfer the Desert Eagle pistol to someone else shortly after he acquired it.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pittsburgh Police Department, the United States Postal Inspection Service, the Pennsylvania State Police, the Allegheny County Sheriff's Office, the Ross Township Police Department, the Canonsburg Police Department, and the Allegheny County Police Department for the successful investigation leading to the conviction and sentence in this case.
Federal Grand Jury Indicts Texas Man for Mailing Threats to Law EnforcementRead the Press Release
DALLAS — A federal grand jury returned an indictment today charging Jesse Brister, aka “Bozo,” with two counts of mailing threatening communications to law enforcement, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Brister, 27, of Conroe, Texas, is presently in custody in the Texas prison system, in New Boston, Texas, in an unrelated case. A date has not yet been set for him to make his initial appearance before a U.S. Magistrate Judge in federal court in Dallas.
“Based on the serious nature of the threats in these letters, resources were diverted from important investigations, such as those in Kaufman County, to investigate these threats, which ultimately proved to be hoaxes,” said U.S. Attorney Saldaña. “Such threats cause significant diversions of law enforcement resources and result in substantial disruption of public services. They will be prosecuted to the fullest extent of the law.”
The indictment alleges that on two occasions, on or about March 21, 2013, and on or about March 28, 2013, Brister mailed a communication, addressed to the U.S. Attorney in Dallas, that contained a threat to injure someone in retaliation for the prosecution of members of the Aryan Brotherhood of Texas.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, each count carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine.
The investigation into these threats was conducted by the Kaufman County Sheriff’s Office, the Texas Rangers (Texas Department of Public Safety), the FBI and other local, state and federal law enforcement agencies. Criminal Chief Assistant U.S. Attorney Chad Meacham is prosecuting.