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14 May 2013
Laredo Customs Broker Pleads GuiltyRead the Press Release
LAREDO, Texas– U.S. Customs Broker Alejandro Santos, 32, has entered a guilty plea in relation to the smuggling of goods into the country, United States Attorney Kenneth Magidson announced today. Santos pleaded guilty to entry of goods by false classification, smuggling goods into the United States and making a false statement to a Homeland Security Investigations (HSI) agent late yesterday afternoon before U.S. Magistrate Judge J. Scott Hacker.
Santos is licensed by Customs and Border Protection (CBP) to file entry documents for commercial shipments on behalf of importers. His responsibilities included generating entry packages, describing, classifying and valuating shipments for importation into the United States and submitting appropriate payments to CBP on behalf of his clients for any duties, taxes and fees owed, if any.
Santos used a scheme to defraud the government by falsifying the country of origin on goods imported into the United States. The falsification allowed him to benefit from the North American Free Trade Agreement preferential treatment program, resulting in zero duties and taxes owed. In truth, duties and taxes should have been paid to the U.S. Santos would then collect money from his clients to cover the correct amount of duties and taxes that should have been paid to CBP. Santos then failed to turn over the money to CBP, keeping the monies for himself.
Santos admitted to importing various goods into the United States made in India and Italy, while falsely claiming the goods were made in Mexico. He would then collect money from his clients (importers of record) and keep the money.
He faces up to a maximum sentence of twenty years in federal prison as well as a $250,000 fine.
The case was investigated by HSI Assistant U.S. Attorney Roel Canales is prosecuting the case.
Keith Daniel Skunkcap Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on May 10, 2013, before Chief U.S. District Judge Dana L. Christensen, KEITH DANIEL SKUNKCAP, a 21-year-old resident of Browning and an enrolled member of the Blackfeet Tribe, was sentenced to a term of:
Prison: 21 months
Special Assessment: $100
Supervised Release: 3 years
SKUNKCAP was sentenced in connection with his guilty plea to burglary.
In an Offer of Proof filed by Assistant U.S. Attorney Ryan G. Weldon, the government stated it would have proved at trial the following:
On August 17, 2011, at approximately 2:00 a.m., SKUNKCAP entered the residence of T.L.G. The residence is located Browning, which is within the exterior boundaries of the Blackfeet Indian Reservation.
T.L.G., the owner of the residence, told SKUNKCAP to leave, but he refused. T.L.G. pointed to the back door of the residence, again requesting SKUNKCAP to leave. SKUNKCAP eventually pushed T.L.G. After being pushed, T.L.G. fell to the ground. As a result of the assault, T.L.G.'s upper lip was split open. T.L.G. was transported to Kalispell due to the seriousness of the facial laceration. T.L.G. underwent reconstructive surgery on her lip and nose.
In an interview with the FBI, SKUNKCAP admitted that he pushed T.L.G. Although SKUNKCAP claimed that T.L.G. hit him about seven times in the face, he did not have any injuries.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that SKUNKCAP will likely serve all of the time imposed by the court. In the federal system, SKUNKCAP does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was conducted by the Federal Bureau of Investigation.
Jury Finds Florida Man Guilty of Role in Oxycodone Trafficking RingRead the Press Release
Deirdre M. Daly, Acting United States Attorney for the District of Connecticut, today announced that a federal jury in New Haven has found WILNER CASTELIN, also known as “Castro,” 44, of Fort Lauderdale, Fla., guilty of narcotics and money laundering charges stemming from his role in an oxycodone trafficking ring. The trial before U.S. District Judge Janet C. Hall began on May 7 and the jury returned the verdict yesterday.
This matter stems from “Operation Blue Coast,” an investigation headed by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area Task Force into the large-scale trafficking of oxycodone pills from Florida to Connecticut. The investigation revealed that an individual regularly purchased oxycodone from suppliers in Florida, transported the oxycodone to Connecticut by commercial airline or automobile, and sold the pills for profit to various Connecticut-based narcotics dealers. He then transported the proceeds of his oxycodone sales from Connecticut to Florida, either by having a courier drive the money or by using commercial airline flights.
The evidence at trial revealed that the narcotics trafficker met David Gaudiosi and Bruce Yazdzik, two large-scale oxycodone distributors in Connecticut, in early 2010. After the meeting, Gaudiosi and Yazdzik visited the narcotics trafficker in Florida on multiple occasions to obtain prescriptions for oxycodone from unscrupulous pain clinics, commonly referred to as “pill mills.” The trafficker paid CASTELIN to chauffeur Gaudiosi and Yazdzik during their Florida visits. CASTELIN subsequently agreed to travel to the northeastern U.S. to drive large amounts of U.S. currency, which were proceeds of the narcotics trafficker’s oxycodone sales in Connecticut, to Florida. CASTELIN was paid approximately $1,000 to $1,250 for each trip.
The jury found CASTELIN guilty of one count of conspiracy to distribute and to possess with intent to distribute oxycodone, and one count of conspiracy to commit money laundering. Judge Hall has scheduled sentencing for August 20, 2013, at which time CASTELIN faces a maximum term of imprisonment of 20 years on each count.
CASTELIN was arrested on September 13, 2011, and has been released on bond since February 28, 2012.
Twenty individuals, including two law enforcement officers and three Transportation Security Agency officers, have been charged as a result of this investigation.Gaudiosi and Yazdzik each pleaded guilty to oxycodone trafficking charges. On November 14, 2012, Yazdzik was sentenced to 120 months of imprisonment. Gaudiosi awaits sentencing.
This matter has been investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area Task Force, which includes personnel from the Connecticut State Police and the Bridgeport, Milford, Norwalk, Stamford and Westport Police Departments; the Drug Enforcement Administration in Florida and the U.S. Department of Homeland Security Office of Inspector General. In addition, the U.S. Marshals Service and the Greenwich, Monroe, Danbury and Waterbury Police Departments have assisted the investigation.
This case is being prosecuted by Assistant United States Attorneys Rahul Kale and Brian Leaming.
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(203) 821-3722 [email protected]Jicarilla Apache Man Pleads Guilty to Voluntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Kevin Cavazone, 30, a member and resident of the Jicarilla Apache Nation, pleaded guilty this afternoon to a felony information charging him with voluntary manslaughter. Under the terms of the plea agreement, Cavazone will be sentenced to 66 months in federal prison followed by a term of supervised release to be determined by the court.
According to court filings, Cavazone killed David Cachucha, also a member of the Jicarilla Apache Nation, on Nov. 22, 2011, by stabbing him repeatedly in the torso. The crime took place on the Jicarilla Apache Indian Reservation during a fight between Cavazone and the victim. During today’s proceedings, Cavazone admitted stabbing the victim in the torso on Nov. 22, 2011, during a fight that began after the two men and several others had been drinking alcohol.
Cavazone has been in federal custody since his arrest on Nov. 28, 2011, and remains detained pending his sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque and Farmington offices of the FBI and the Jicarilla Apache Tribal Police Department, and is being prosecuted by Assistant U.S. Attorney Mark T. Baker.
Jicarilla Apache Man Pleads Guilty to Federal Aggravated Child Sexual Abuse ChargeRead the Press Release
ALBUQUERQUE – Gary Sidney Vicenti, 53, a member and resident of the Jicarilla Apache Nation, pleaded guilty this afternoon to an aggravated sexual abuse charge under a plea agreement with the U.S. Attorney’s Office. Under the terms of the plea agreement, Vicenti will be sentenced to 12 years in prison followed by a term of supervised release to be determined by the court. Vicenti also will be required to register as a sex offender.
Vicenti’s guilty plea was announced by U.S. Attorney Kenneth J. Gonzales, Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI, and Police Chief Kendall P. Vicenti of the Jicarilla Apache Tribal Police Department.
Vicenti was arrested in Nov. 2012, on a criminal complaint alleging that he sexually abused a child under the age of 12 in summer 2011 on the Jicarilla Apache Reservation. During today’s hearing, Vicenti entered a guilty plea to a felony information charging him with aggravated sexual abuse and admitted sexually abusing the victim by touching the victim’s genitals. Vicenti also admitted that this criminal offense occurred on June 1, 2011, in the Jicarilla Apache Reservation.
Vicenti was remanded into the custody of the U.S. Marshals Service after entering his guilty plea. He will remain detained pending his sentencing hearing, which has yet to be scheduled.
The case was investigated by the Farmington office of the FBI and the Jicarilla Apache Tribal Police Department. It is being prosecuted by Assistant U.S. Attorney Presiliano A. Torrez as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Hospital Employee and Accomplice Plead Guilty to Tax Refund Fraud Using Stolen Patient InformationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Michael J. DePalma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, Ronald Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), and Scott J. Israel, Sheriff, Broward County Sheriff’s Office, announce that defendants Shalamar Major, 32, and Tanisha Wright, 27, both of Deerfield Beach, pled guilty yesterday in connection with a tax refund scheme that used stolen social security and other personal identifying information to file on-line tax returns claiming fraudulent tax refunds from the IRS.
More specifically, Wright was convicted of three counts of identity theft, in violation of Title 18, United States Code, Section 1028(a)(7), three counts of theft of public money, in violation of Title 18, United States Code, Section 641, one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(3), one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A, one count of theft of mail, in violation of Title 18, United States Code, Section 1708, and one count of conspiracy to commit false claims, in violation of Title 18, United States Code, Section 286. Major was convicted of one count of unauthorized HIPAA disclosures, in violation of Title 42, United States Code, Section 1320d-6, and one count of conspiracy to commit false claims, in violation of Title 18, United States Code, Section 286.
Sentencing has been scheduled for July 22, 2013 at 8:45 a.m. before U.S. District Judge Robin S. Rosenbaum in Ft. Lauderdale. At sentencing, defendant Wright faces a maximum statutory sentence of up to ten years in prison on each of the theft of public money, access device fraud, and conspiracy to commit false claim counts, a maximum statutory sentence of up to fifteen years in prison on the identity theft counts, a maximum statutory sentence of up to five years in prison on the theft of mail counts, and a mandatory consecutive two years imprisonment on the aggravated identity theft count. Defendant Major faces a maximum statutory sentence of up to ten years in prison on each of the unauthorized HIPAA disclosure and conspiracy to commit false claims counts.
According to documents filed and statements made in court, from January through June 2012, Wright and Major possessed and used stolen personal identifying information of others to file federal income tax returns claiming tax refunds to which they were not entitled. Specifically, defendant Shalamar Major was employed as a scheduler at the Boca Raton Regional Hospital in Boca Raton, Florida. As a scheduler, she had access to personal identification information of Boca Raton Regional Hospital patients, including their names, dates of birth, social security numbers, and other sensitive personal information. In exchange for the promise of future payments, Shalamar Major unlawfully provided Tanisha Wright sensitive personal identifying information, including names, dates of birth, and social security numbers, of numerous Boca Raton Regional Hospital patients. Tanisha Wright, upon receipt of the sensitive personal identifying information of the Boca Raton Regional Hospital patients, used this information to electronically file fraudulent federal income tax returns without the knowledge or authorization of the victims and claimed refunds to which she was not entitled from the IRS.
Tanisha Wright thereafter instructed the IRS to direct-deposit the refunds onto pre-paid reloadable debit cards that were already in her possession and had been previously stolen out of the U.S. mail. Once the debit cards had been funded by the Department of the Treasury, Tanisha Wright would convert the funds on the debit cards to cash by making withdrawals at local automated teller machines or would make personal purchases at various local businesses. Once Tanisha Wright obtained cash from the fraudulently funded debit cards, she would split the proceeds with Shalamar Major. In total, at least 57 fraudulent tax returns were filed with the IRS, requesting $306,720 in federal tax refunds.
Mr. Ferrer commended the investigative efforts of IRS-CI, the U.S. Postal Inspection Service, and the Broward Sheriff’s Office. This case is being handled by Assistant U.S. Attorney Marc Anton.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Gulf Cartel Plaza Boss Heads to Prison for LifeRead the Press Release
BROWNSVILLE, Texas - Juan Roberto Rincon-Rincon, one of the highest ranking members of the Gulf Cartel, has been ordered to federal prison for life following his convictions related to a large drug trafficking conspiracy, United States Attorney Kenneth Magidson announced today along with Vincent Iglio, acting special agent in charge of Homeland Security Investigations (HSI) and Javier Peña, special agent in charge of the Drug Enforcement Administration (DEA). A jury convicted Rincon following seven days of trial and less than two hours of deliberation on Friday, Sept. 28, 2012.
Today, U.S. District Judge Hilda G. Tagle, who presided over the trial, ordered Rincon to serve a life sentence in federal prison. At the hearing, the court found that Rincon-Rincon was accountable for the equivalent of 10,697,100 kilograms of marijuana as his offense conduct. His sentence was enhanced because Rincon-Rincon used dangerous weapons such as grenades, rocket launchers, homemade cannons and automatic weapons during the conspiracy. The court also enhanced his sentence because Rincon-Rincon was a leader/organizer of the criminal activity, used violence, used body armor, bribed law enforcement officials, imported methamphetamine and because his primary employment consisted of being a lieutenant and/or plaza boss for the Gulf Cartel. Rincon-Rincon was further ordered to pay a $1 million fine as to each of the two counts of conviction. In handing down the sentence, Judge Tagle noted that Rincon-Rincon had made the conscious choice to participate in the conspiracy and further commented to him that “you enjoyed the fruits of that lifestyle. Now, it is time for you to deal with the consequences.”
“HSI agents have made it a top priority to bring stability and security to this border region and today’s sentencing of Rincon-Rincon is a prime example of that,” said Iglio. “HSI will continue its efforts in partnership with our federal, state and local partners to combat cartel related crimes in an effort to achieve these significant results.”
Rincon, 42, from Matamoros, Mexico, was convicted of conspiracy to possess with the intent to distribute as well as conspiracy to import into the United States more than five kilograms of cocaine and 1000 kilograms of marijuana from January 2002 until his capture on Oct. 26, 2011.
“Juan Roberto Rincon-Rincon, one of the highest ranking members of the Gulf Cartel, posed a threat to the citizens of both the United States and Mexico,” said Peña. “This case highlights the work of law enforcement in the Rio Grande Valley in keeping our border communities safe and ensuring Mexican drug traffickers do not find refuge in the United States.”
Evidence at trial proved that more than 9,000 kilograms of marijuana was seized by Border Patrol during the months of September and October 2011 when Rincon-Rincon was proven to be the Plaza Boss of Rio Bravo, Tamaulipas, Mexico. During his time in that leadership role, the money derived from the Gulf Cartel was more than $20 million. As the plaza boss, which is the lead representative for the Gulf Cartel in a particular region or town, Rincon-Rincon, aka Primo or X-5, was in charge of maintaining control of the region to ensure safe passage of the Gulf Cartel’s narcotics and ensuring no narcotics passed through his area of responsibility without his approval or knowledge.
Testimony at trial indicated that control of the plaza was accomplished by bribing Mexican law enforcement, some elements of the Mexican military, the news media and elected public officials. Additionally, testimony indicated that control of the plaza was also accomplished by secretly and illegally wiretapping the phones at law enforcement offices, public offices and phones, hotels and news media outlets. License plate readers and cameras were also used in order to detect infiltration of rival cartels or the movements of the Mexican military, according to testimony. Rincon-Rincon also had at least 100 individuals at his disposal armed with semi-automatic rifles, body armor, grenades, .50 Caliber automatic rifles and some had rocket launchers.
Testimony at trial further revealed that beginning in approximately 2000, Rincon-Rincon began working his way up the ranks of the Gulf Cartel through his associations with other known Cartel members. Testimony indicated that in 2000, Rincon-Rincon was a police officer in Matamoros, Tamaulipas, patrolling its streets with Jorge Eduardo Costilla-Sanchez, the eventual leader of the Cartel Del Golfo. During this time, Rincon-Rincon and Costilla were in charge of drug houses in Matamoros, Tamaulipas, according to testimony. Rincon-Rincon was eventually one of Costilla’s most trusted associates. In 2003, Osiel Cardenas-Guillen was arrested and Jorge Eduardo Costilla-Sanchez then took over the leadership of the Gulf Cartel. The jury heard testimony that many individuals involved in the drug transactions would have to often go through Rincon-Rincon to relay information to Costilla in order to receive authorization to transport drugs, to make bribe payments and to negotiate drug terms. Rincon-Rincon would also receive large amounts of bulk cash currency that were proceeds from the sale of large amounts of Gulf Cartel narcotics.
During his association with the Cartel, Rincon-Rincon was also in charge of a “Polla,” which involves the collection of money for the purchase of cocaine and its distribution to those who contributed to it. Several co-defendants testified that Rincon-Rincon would collect between $500 and $700 thousand from Gulf Cartel conspirators and then return with 100 to 120 kilograms of cocaine which would then be imported into the U.S. by Gulf Cartel associates. According to testimony, Rincon-Rincon conducted the “Polla” at least once per month from approximately 2003 to 2010.
An internal power struggle later developed which eventually led to a fire fight on Oct. 25, 2011, at which time another plaza boss was killed. As a result, Rincon-Rincon and others fled into the United States and were captured by law enforcement on Oct. 26, 2011.The case was investigated by Homeland Security Investigations, Drug Enforcement Administration, FBI, Border Patrol, Texas Department of Public Safety, Cameron County Sheriff’s Office and police departments in Brownsville and Progresso. Assistant United States Attorneys Angel Castro and Jody L. Young prosecuted the case.
Goodwin: “another Pedophile Headed to Prison”Read the Press Release
Kanawha Co. man sentenced to 3 years in federal prison for possessing child pornography
CHARLESTON, W.Va. – “We’ve taken another pedophile off the streets. He is now on his way to prison,” U.S. Attorney Booth Goodwin announced today in the wake of a Kanawha County man’s federal sentencing on child pornography charges. Tracey E. Cooper, 38, of Giles, Kanawha County, W.Va., was sentenced today to three years in prison followed by 15 years of supervised release. The sentence was handed down today by United States District Judge John T. Copenhaver, Jr. Cooper previously pleaded guilty in January.
Cooper collected more than 600 pictures and videos of children having sex or performing sexual acts. The child pornography was found on Cooper’s computer after he downloaded it from the Internet. Cooper used the peer-to-peer file sharing programs Shareaza and Aires to download, receive and share child pornography. Cooper possessed more than 600 images of child pornography and traded the images with other pedophiles over the Internet.
“This kind of crime is downright sickening,” Goodwin said. “Behind every piece of child pornography traded over the Internet, there is a child somewhere who has been exploited in the most heinous way imaginable. People who download and share these pictures encourage that exploitation. My office will continue to be relentless in prosecuting these cases.”
The Federal Bureau of Investigation’s West Virginia Cyber Crimes Task Force, the Kanawha Bureau of Investigation and the Kanawha County Sheriff’s Department conducted the investigation. Assistant United States Attorney Lisa Johnston handled the prosecution.
Cooper entered into a stipulation agreeing to pay $10,000 in restitution to a known victim in the case.
This case was prosecuted as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia. Since January 2012, twenty-two defendants have been convicted as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia. Seventeen defendants have been sentenced to a total of more than 82 years (987 months, to be exact) in federal prison. The remaining five defendants currently await sentencing.
Goodwin Urges West Virginians to Join in Observance of National Peace Officers Memorial Day WednesdayRead the Press Release
Police Week salutes our heroic members of law enforcement
CHARLESTON, W.Va. - United States Attorney Booth Goodwin today asked West Virginians to join in recognition of Peace Officers Memorial Day on Wednesday, May 15, 2013. Peace Officers Memorial Day is a daylong observance held nationwide to honor the extraordinary service and sacrifice of our nation’s police officers. Peace Officers Memorial Day is held in conjunction with national Police Week, which is observed the entire week of May 12-18, 2013.
U.S. Attorney Booth Goodwin said, “The selfless and unsung work that our men and women in uniform do each day is remarkable. Members of law enforcement give their all – 24 hours a day, seven days a week - to keep us safe. And, tragically, thousands of brave peace officers throughout our nation’s history have made the ultimate sacrifice while protecting their fellow citizens. Peace Officers Memorial Day gives us a chance to honor them.”
Goodwin continued, “Police officers do much more than just catch the bad guys and put them in jail. They are community problem solvers. They do it all: whether it’s helping a stranded motorist, apprehending a gun-wielding robbery suspect, stopping drug traffickers from ravaging our communities, or serving as role models to our children. We can always count on them.”
“I encourage all West Virginians: if you see a member of law enforcement on Wednesday or at any time this week, take a few seconds to say ‘thank you.’”
In accordance with a proclamation issued by the President this week, all United States flags at federal facilities will be flown at half-staff on Peace Officers Memorial Day. The presidential proclamation similarly encourages all Americans to display the flag at half-staff from their homes and businesses on Wednesday.
Click on the links below to listen to audio clips provided byU.S. Attorney Booth Goodwin
Goodwin audio clip part 1
Goodwin audio clip part 2
Goodwin audio clip part 3
Garden City Man Pleads Guilty to Possessing Sawed-Off ShotgunRead the Press Release
BOISE – Jesse Scott Fleming, 24, of Garden City, Idaho, pleaded guilty today in United States District Court in Boise to unlawfully possessing a firearm, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Fleming was arrested after he attempted to sell marijuana to an undercover police officer on September 17, 2012. After he was arrested officers discovered a sawed-off shotgun in Fleming’s vehicle. Fleming admitted to possessing the sawed-off shotgun. Fleming is also prohibited from possessing firearms because he was previously convicted of the felony crime of aggravated assault in 2009.
The charge is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years supervised release. The Government is also seeking forfeiture of the sawed-off shotgun.
Sentencing is set for July 25, 2013, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by the Ada County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Garcia Guilty PleaRead the Press Release
BATON ROUGE, LA - United States Attorney Donald J. Cazayoux, Jr., announced that DANIEL GARCIA, age 36, pled guilty today before United States District Court Judge James Brady to one count of conspiracy to commit wire fraud in connection with a scheme to defraud the State of Louisiana’s Motion Picture Industry Development Tax Credit Program (“Tax Credit Program.”) GARCIA faces a sentence of up to five (5) years imprisonment, three (3) years of supervised release following imprisonment, and a fine of $250,000. The sentencing date has yet to be scheduled.
At today’s hearing, GARCIA admitted that he owned and operated DMG Holdings, LLC and Louisiana Film Finishers, LLC, companies that provided technical services for the production of motion pictures. GARCIA admitted, within a nine-day period beginning on June 10, 2009, he conspired with at least one other individual to transfer $1,000,000 he received from an investor through four separate film production companies. These transfers created cancelled checks which he later used as false documentation for $3,000,000 of motion picture productions.
The Louisiana Economic Development Office (“LED”) is a state entity which mission is to lead economic development for the state of Louisiana. LED operated the Motion Picture Industry Development Tax Credit Program (“Tax Credit Program”) which was designed to entice production companies to shoot films and video productions in Louisiana. The Tax Credit Program provided a 30% tax credit on qualified expenditures for the production of films in Louisiana. Once issued by LED, the tax credits were fully transferable.
Between February 10, 2009 and March 31, 2010, GARCIA applied for, and received, tax credits from the LED for various movies. In total, $3,000,000 of the purported expenditures related to films were based upon the false expenditures created in the scheme described above. GARCIA admitted that he was not entitled to $900,000 of the tax credits he received for these films.
U.S. Attorney Donald J. Cazayoux, Jr., stated, “We will continue our commitment to prosecuting anyone abusing the Tax Credit Program. Those who misuse this program, through fraud and deceit, undermine the purpose of the Tax Credit Program and will be investigated and prosecuted to the fullest extent of the law. We appreciate the work of the FBI and the Louisiana State Inspector General’s Office in this case and the cooperation of the LED.”
Louisiana State Inspector General Stephen Street commented, “This sort of blatant thievery unfairly mars the whole Tax Credit Program, and cannot be tolerated. We are committed to working with the FBI and United States Attorney to root this sort of corruption out wherever it may exist.”
This investigation was conducted by the FBI and the Louisiana State Inspector General’s Office and is being prosecuted by Assistant United States Attorney Frederick A. Menner, Jr.
Four More Men Sentenced for Providing Material Support to TerroristsRead the Press Release
MINNEAPOLIS—Earlier today in federal court, four more men were sentenced for their roles in terrorism offenses. United States District Court Chief Judge Michael J. Davis sentenced Omer Abdi Mohamed to 144 months in federal prison, followed by 20 years of supervised release. He was ordered to remain in the custody of the Bureau of Prisons. Abdifatah Yusuf Isse, Salah Osman Ahmed, and Ahmed Hussein Mahamud were each sentenced to 36 months in federal prison, followed by 20 years of supervised release. Isse, Ahmed, and Mahamud cooperated with the United States and testified at the trial of Mahamud Said Omar. Yesterday, Judge Davis sentenced Omar to 20 years in prison following his conviction at trial for numerous terrorism offenses relating to his provision of money to al-Shabaab fighters and the facilitation of travel for young men from Minnesota to join al-Shabaab, a U.S.-designated Foreign Terrorist Organization based in Somalia.
Relative to today’s sentencings, Omer Abdi Mohamed, age 28, of Minneapolis, pleaded guilty on July 18, 2011, to one count of conspiracy to provide material support to co-conspirators who intended to murder, kidnap, or main Ethiopian and Somali government troops. Abdifatah Yusuf Isse, age 29, of Minneapolis, pleaded guilty on April 24, 2009, to one count of providing material support to terrorists. Salah Osman Ahmed, age 30, of Minneapolis, pleaded guilty on July 28, 2009, to one count of providing material support to terrorists. And Ahmed Hussein Mahamud, age 28, formerly of Eden Prairie but most recently of Westerville, Ohio, pleaded guilty on February 6, 2012, to one count of conspiring to provide material support to al-Shabaab.
Following today’s sentencings, United States Attorney B. Todd Jones said, “These defendants, by providing material support to a designated terrorist organization, broke both the law and the hearts of family members across the Twin Cities. They facilitated the travel of other men to Somalia to fight or they themselves traveled to fight, often leaving Minnesota in the dead of night, without so much as a word to their parents. Today’s sentences reflect not only the misguided and insidious nature of their crimes, but also the importance of cooperation and community involvement in preventing potential acts of terrorism.”
J. Chris Warrener, Special Agent in Charge of the Federal Bureau of Investigation’s Minneapolis Field Office, which leads the Minnesota Joint Terrorism Task Force, the primary investigative entity in this case, added, “The sentencing hearings of these four young men serve as reminders that the FBI will continue its efforts to thwart the radicalization of our youth through both investigations and engagement of our community. We remain steadfastly committed to each.”
In his plea agreement filed on July 18, 2011, Omer Abdi Mohamed admitted that between September and December of 2007, he assisted men from Minneapolis in traveling to Somalia to fight with al-Shabaab, knowing that once there, the men intended to murder, kidnap, or main Ethiopian and Somali government troops. Mohamed specifically attended meetings at a Minneapolis mosque, restaurant, and private residence, where he and his co-conspirators formed a secret plan that called for Somali men residing in Minneapolis to travel to Somalia to join al-Shabaab. He also facilitated the travel of several of these young men, helping them obtain plane tickets as well as the false itinerary needed by one man to mislead his family about the purpose of his travel. Mohamed was also present in Minneapolis when money was raised for such travel. Many of those donations came from unsuspecting members of the Somali-American community, who were told the money was to be used for Somalia relief efforts.
In his plea agreement filed on April 24, 2009, Abdifatah Yusuf Isse admitted that during 2007, he met other men at a Minneapolis mosque to conspire to provide money and people to fight in Somalia. Then, on December 8, 2007, he traveled to Somalia and joined al-Shabaab. While there, he participated in fund-raising calls back to Minnesota in an effort to garner money to purchase his own AK-47 rifle. In Somalia, Isse stayed at an al-Shabaab safe house and briefly attended an al-Shabaab training camp before quitting the camp in the Spring of 2008.
In his plea agreement filed on July 28, 2009, Salah Osman Ahmed admitted that in October 2007, he conspired with others in Minneapolis to provide money and people to al-Shabaab. To that end, he raised money from the Somali-American community in Minnesota under false pretenses. Then, on December 6, 2007, Ahmed traveled from Minneapolis to fight in Somalia. While in Somalia, he received basic training from al-Shabaab on AK-47s, rocket-propelled grenades, and machine guns. He also assisted in building a training camp for al-Shabaab, before quitting camp with Isse.
In his plea agreement filed on February 6, 2012, Ahmed Hussein Mahamud admitted that from 2008 through February of 2011, he conspired with others to provide money and people to al-Shabaab. Specifically, in the summer of 2008, he assisted with fundraising under false pretenses, claiming the money raised would be used for a local mosque or to help orphans in Somalia, when, in fact, it was for purchasing airline tickets and paying other expenses for men who traveled from Minneapolis to Somalia to join al-Shabaab. In 2009 and 2010, he also conspired to send money to an al-Shabaab fighter to assist in buying weapons. He sent money via wire transfers to a co-conspirator in Somalia, knowing the money would be used to purchase weapons or otherwise support al-Shabaab.
This case arose out of “Operation Rhino,” a federal investigation that has focused primarily on the disappearance of approximately 20 young, ethnic Somali men from the Twin Cities area during the past six years. The young men were recruited to fight with al-Shabaab. The earliest groups of men departed the United States in October and December of 2007, while others left in February 2008, August 2008, September 2008, November 2008, and October 2009. Upon arriving in Somalia, the men resided in al-Shabaab safe houses in Southern Somalia until constructing an al-Shabaab training camp, where they were trained from that point on. Senior members of al-Shabaab and a senior member of al-Qaeda in East Africa conducted those trainings.
In July 2008, men from Minneapolis as well as other Americans participated in an al-Shabaab ambush of Ethiopian troops. On October 29, 2008, one of those men, Shirwa Ahmed, who left Minneapolis in December 2007, detonated a vehicle-borne improvised explosive device as one of five coordinated suicide bombings in Bosaso and Hargeisa, Somalia. Ahmed is believed to have become the first American suicide bomber in Somalia. On May 30, 2011, Farah Mohamed Beledi, an indicted individual who departed Minnesota in October 2009, was killed at a checkpoint in Somalia as he attempted to detonate his suicide vest. To date, approximately 18 individuals have been charged through Operation Rhino, and eight have been convicted. The remaining ten are believed to be fugitives or have been killed in Somalia.
These cases resulted from a long-term investigation conducted by the FBI’s Minneapolis Joint Terrorism Task Force.
The case was prosecuted by Assistant U.S. Attorneys Charles J. Kovats, John Docherty, and LeeAnn K. Bell, and William M. Narus of the Counterterrorism Section of the U.S. Department of Justice’s National Security Division.Former Personal Care Attendant Sentenced for Stealing the Identity of A Minor in Her CareRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a former Twin Cities personal care attendant was sentenced for stealing the identity of a minor in her care. United States District Court Judge Richard H. Kyle sentenced Charnell Alene Hudson, age 40, unknown residence, to 42 months on one count of mail fraud and one count of aggravated identity theft, as well as pay restitution to the victims. Hudson was indicted on July 23, 2012, and pleaded guilty on November 19, 2012.
In her plea agreement, Hudson acknowledged that between June 2008 and September 2010, she devised and executed a scheme to defraud by stealing the identity of a minor in her care. In 2005, Hudson worked as a personal care attendant for the elderly and disabled in the Twin Cities area. That year, she was hired to provide care for a minor at the minor’s home. In 2006, the minor moved in with Hudson. Hudson assumed responsibility for all aspects of the minor’s care and had access to all of the minor’s personal identifying documents. When the minor moved out the next year, Hudson kept all of the minor’s identifying documents and information.Hudson used the minor’s Social Security card and birth certificate to obtain a Minnesota driver’s license and a title for a vehicle. Since Hudson had a criminal history that prevented her from opening a licensed daycare, she also used the minor’s identity to establish a business called “Lil Dumplin’s Daycare,” which allowed her to receive $70,000 from Ramsey County pursuant to a contract to provide services to the community. On March 25, 2010, Hudson also used the minor’s identity to purchase a $153,000 home in St. Paul, Minnesota. Hudson then used the minor’s identity to send monthly payment checks of $916.12 to the seller of the house.
This case was the result of an investigation by the U.S. Postal Inspection Service and the Social Security Administration’s Office of the Inspector General. It was prosecuted by Assistant U.S. Attorney Thomas Calhoun-Lopez.Former Letter Carrier Sentenced for Stealing MailRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a former U.S. postal carrier was sentenced for stealing from the mail he delivered. United States District Court Judge John R. Tunheim sentenced Giang Nguyen, age 49, of Superior, Wisconsin, to two years of probation, along with payment of restitution, and 100 hours of community service on one count of theft of mail by a postal employee. Nguyen was charged via an Information on September 6, 2012, and pleaded guilty on September 26, 2012.
Following today’s sentencing, Pete Gately, Special Agent in Charge of the U.S. Postal Service-Office of Inspector General (“USPS-OIG”), said, “The majority of U.S. Postal Service employees are dedicated public servants who take great pride in ensuring the sanctity and security of the U.S. Mail. Unfortunately, Giang Nguyen betrayed the trust placed in him, and his actions resulted in deserved consequences for violating that trust. Today’s outcome demonstrates the ongoing commitment of the USPS-OIG and the U.S. Attorney’s Office to vigorously investigate and prosecute those matters. The public can remain confident that the USPS-OIG will continue to ensure the security of their mail.”
In his plea agreement, Nguyen admitted that from March 2010 to January 7, 2011, he removed applications for Menards rebate checks, the actual rebate checks, and Menards Big Game Money Cards from the mail he was entrusted to deliver. During this period, Nguyen was employed by the Duluth Post Office. Nguyen used the rebate checks and Big Game Money Cards that he stole to make purchases at Menards. He also altered the stolen rebate check applications so that Menards would issue the checks to him, rather than the customers on his route. In total, Nguyen stole at least 77 pieces of mail intended for Menards and residents on his route. Through his activity, Nguyen stole at least $1,456.75.
This case was the result of an investigation by the U.S. Postal Service-Office of Inspector General. The case was prosecuted by Assistant U.S. Attorneys John E. Kokkinen and Lola Velazquez-Aguilu.Former Goodwill Industries Official Sentenced to Federal Prison for Theft ConvictionRead the Press Release
ALBUQUERQUE – This morning, Francis Louis Carrillo, 49, of Albuquerque, N.M., was sentenced to 12 months in federal prison followed by three years of supervised release for his conviction for stealing money from a program receiving federal funds. Carrillo also was ordered to pay restitution in the amount of $56,417.82. Carrillo’s sentence was announced by U.S. Attorney Kenneth J. Gonzales, and Phyllis Grissom-Robinson, Special Agent in Charge of Region 6 of the Office of Inspector General, U.S. Department of Housing and Urban Development (HUD), and William R. Jones, Acting Special Agent in Charge of the Washington Regional Office of Labor Racketeering and Fraud Investigations, U.S. Department of Labor (DOL).
Carrillo was indicted in May 2012, and charged with theft of government property and theft concerning programs receiving federal funds. The six-count indictment charged Carrillo with embezzling thousands of dollars in federal funds provided through grant programs administered by HUD and the U.S. Department of Labor (DOL). At the time of the offenses charged, Carrillo was employed as the Deputy Director of Community Programs at Goodwill Industries of New Mexico (Goodwill).
HUD funds the Supportive Housing Program (SHP) which provides affordable housing for low-income Americans and DOL funds the Senior Community Service Employment Program (SCSEP) which provides vocational training for older Americans. Although funded by HUD and DOL, the SHP and SCSEP are administered at the local level by community organizations and not-for-profit corporations. Goodwill, a not-for-profit corporation that provides skill development and vocational training opportunities to community members facing barriers to employment, received more than $80,000 per year in 2008, 2009 and 2010 through the SHP and SCSEP programs. Goodwill was permitted to use these federal funds to provide short-term emergency rental assistance to local residents facing eviction and homelessness as the result of sudden job loss or other economic setback. According to the indictment, between 2008 and 2010, Carrillo engaged in a scheme to steal funds from Goodwill, including funds received through the SHP and SCSEP programs, by issuing false and fraudulent checks for short-term rental assistance.
In Oct. 2012, Carrillo entered a guilty plea to Count 6 of the indictment, charging him with theft concerning programs receiving federal funds. According to the plea agreement, Carrillo was employed by Goodwill from 2004 to 2010, where he initially held the title of Program Manager and later was promoted to Deputy Director of Community Programs. Carrillo’s responsibilities included administering programs that received federal funds and approving applications by low-income clients for emergency rental assistance.
In entering his guilty plea, Carrillo admitted abusing his position at Goodwill by engaging in a scheme to approve and issue checks for false applications for emergency rental assistance. Upon issuance of the checks, Carrillo would have the payees either cash the checks and provide him with the funds, or endorse the checks so that Carrillo could cash them himself. Carrillo also admitted that, between 2006 and 2010, he caused approximately 130 checks to be issued by Goodwill under false pretenses and fraudulently converted the proceeds of those checks to his own use. During the course of his illegal scheme, Carrillo embezzled approximately $80,000 from Goodwill.
As required by the terms of Carrillo’s plea agreement, the United States will move to dismiss Counts 1 through 5 of the indictment.
The case was investigated by HUD’s Office of Inspector General and DOL’s Office of Labor Racketeering and Fraud Investigations, and was prosecuted by Assistant U.S. Attorney John C. Anderson.Former Construction Company Owner Indicted in Nevada for Income Tax EvasionRead the Press Release
A federal grand jury in Nevada today returned an indictment against a former construction company owner for evading federal income and employment taxes, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Internal Revenue Service-Criminal Investigation (IRS-CI) Chief Richard Weber, FBI Acting Special Agent in Charge William C. Woerner of the Las Vegas Field Office, and Sheriff Doug Gillespie of the Las Vegas Metropolitan Police Department.
Leon Benzer, 46, of Las Vegas, was charged in U.S. District Court in the District of Nevada with two counts of tax evasion.
In January 2013, Benzer was indicted in a related case on charges of wire fraud and conspiracy to commit wire and mail fraud. According to court documents, from approximately August 2003 through February 2009, Benzer orchestrated a scheme to direct construction defect litigation and repairs at condominium complexes to a conspiring law firm and Benzer’s construction company, Silver Lining Construction (SLC). As a result of this scheme, the indictment alleges that SLC was awarded a contract worth over $7 million for work at the Vistana Homeowner’s Association (Vistana HOA) in Las Vegas. The case is pending.
According to the indictment returned today, in August 2006 Benzer filed five years’ worth of personal tax forms and business tax returns without any payments accompanying those returns. As of April 2007, Benzer had allegedly failed to pay his personal tax liability of approximately $459,000 and SLC’s employment tax liability of approximately $687,000 and unemployment tax liability of approximately $18,000. In May 2007, the IRS issued a notice of intent to file a levy; Benzer subsequently appealed this process and indicated that he wanted to enter into an “offer-in-compromise” with the IRS to pay a portion of what was owed in full satisfaction of all his tax liabilities. According to the indictment, during this offer-in-compromise process, the IRS requested detailed financial information from Benzer.
Between March 2005 and January 2008, the indictment alleges that Benzer and SLC received over $7 million from the Vistana HOA contract, including a wire transfer of over $1 million on Sept. 21, 2007, to a personal US Bank account that Benzer opened in August 2007. The indictment alleges that when Benzer filed certain IRS forms related to the offer-in-compromise process on Sept. 25, 2007, he failed to disclose this personal U.S. Bank account or the assets contained in it.
The maximum prison sentence for each count of tax evasion is five years in prison and a maximum fine of $100,000.
The charges and allegations against the indicted defendant are merely accusations, and the defendant is considered innocent unless and until proven guilty.
The case is being prosecuted by Senior Deputy Chief Kathleen McGovern, Deputy Chief Charles La Bella and Trial Attorney Thomas B.W. Hall of the Criminal Division’s Fraud Section. The case is being investigated by IRS-CI, the FBI and the Las Vegas Metropolitan Police Department, Criminal Intelligence Section.
Today’s charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Former City Employee John McDaniel Sentenced for FraudRead the Press Release
PHILADELPHIA - Former Philadelphia city employee John D. McDaniel, 39, of Philadelphia, was sentenced today to 12 months and one day in prison for a wire fraud charge connected to the theft of $100,000 from a campaign/political committee. McDaniel, the former Treasurer of the campaign/political committee for a Philadelphia City Councilperson, was fired from his city-paid airport job after the city Board of Ethics identified numerous reporting irregularities by McDaniel in the campaign’s required city filings.
Between 2009 and 2011, McDaniel used several methods to routinely and, at times, without authorization, withdraw funds from the committee account, which funds he then used for his own purposes and other purposes. At times, McDaniel wrote and cashed checks to himself, and wrote checks to Progressive Agenda, a political action committee which he controlled, from which he then took stolen funds. McDaniel concealed the theft by filing false and incomplete campaign finance reports.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Paul L. Gray.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former Chisholm Resident Charged with Defrauding Customers of Classic Car Restoration CompanyRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 26-year-old Michigan man, formerly of Chisholm, was charged with defrauding customers of Memory Lane Classics, a company that restored and rebuilt classic cars. Edwin Scott Verdung was specifically charged via an Information with one count of wire fraud and one count of transaction money laundering. He allegedly defrauded customers out of more than $1 million.
From April 2007 through May 2010, Verdung purportedly took money from individuals who were in the market for classic automobiles or who brought their own vehicles into the shop to be restored or rebuilt. Despite accepting the funds, however, Verdung allegedly failed to provide the vehicles or the restoration services promised. In some instances, he reportedly represented falsely that he had made progress in rebuilding or restoring a customer’s vehicle, when, in fact, he had done nothing along those lines. Verdung also allegedly required some customers to make “progress” payments, providing those customers with fraudulent photographs as evidence of the progress made in restoring the vehicle. Verdung spent the money he received on things other than restoring vehicles as he had promised.If convicted, Verdung faces a potential maximum penalty of 20 years in federal prison on the wire fraud count and 10 years in federal prison on the transaction money laundering count. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the Internal Revenue Service-Criminal Investigation, Minnesota Bureau of Criminal Apprehension, and the Chisholm Police Department. It is being prosecuted by Assistant United States Attorney Nicole A. Engisch.
A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial.
Federal Medicare Fraud Strike Force Charges Chicago Area Defendants with Defrauding Medicare and Other Health InsurersRead the Press Release
CHICAGO — Two area physicians and three health clinic co-owners are among seven defendants charged here with engaging in five separate, unrelated health care fraud schemes to defraud the Medicare program and/or private health insurers of millions of dollars, federal law enforcement officials announced today.
Four of the five cases here are part of a nationwide takedown by Medicare Fraud Strike Force operations in eight cities, announced today by the Departments of Justice and Health and Human Services, resulting in charges against 89 defendants, including doctors, nurses, and other licensed medical professionals, for their alleged participation in Medicare fraud schemes collectively involving approximately $233 million in false billings.
In Chicago, the defendants were charged in two criminal complaints and two informations filed today and yesterday, and an indictment that was unsealed today following the arrest of one defendant in Miami. All seven defendants were charged with health care fraud for allegedly defrauding the Medicare program, or violating the anti-kickback statute, which makes it illegal to offer, pay, solicit, or receive payments in exchange for referrals of Medicare patients. The charges involve various medical treatments and services, as well as durable medical equipment.
“Today’s announcement marks the latest step forward in our comprehensive efforts to combat fraud and abuse in our health-care systems,” said Attorney General Eric Holder. “These significant actions build on the remarkable progress that the HEAT has enabled us to make – alongside key federal, state, and local partners – in identifying and shutting down fraud schemes. They are helping to deter would-be criminals from engaging in fraudulent activities in the first place. And they underscore our ongoing commitment to protecting the American people from all forms of health-care fraud, safeguarding taxpayer resources and ensuring the integrity of essential health-care programs,” he added.
“Today’s charges are part of our continuing efforts not only to deprive dishonest healthcare providers of their illegal profits, but to demonstrate to the broader medical services community that healthcare fraud will be found out and prosecuted with all of our resources. In short, we will not tolerate medical professionals and providers who abuse our healthcare system,” said Gary S. Shapiro, United States Attorney for the Northern District of Illinois.
Details of the Chicago cases follow:
United States v. Ankur Roy, Akash Patel, and Dipen Desai
ANKUR ROY, AKASH PATEL, and DIPEN DESAI, who owned and operated Selectcare Health, Inc., which provided outpatient physical and respiratory therapy in Park Ridge and Skokie, were charged with submitting more than $4 million in false billings to Medicare between March and July 2011. Each defendant was charged with six counts of health care fraud in an indictment that was returned by a federal grand jury last Wednesday and unsealed today.
Roy, 36, of Miami was arrested today in south Florida, while Patel, 33, of Morton Grove, and Desai, 33, of Chicago, will be ordered to appear for arraignment on a later date in U.S. District Court in Chicago.
According to the indictment, the defendants submitted false claims to Medicare and Blue Cross Blue Shield on behalf of Selectcare patients for respiratory therapy services that were never provided. The alleged false billings sought reimbursement for services purportedly provided on days that Selectcare’s sole respiratory therapist was not working; for time periods in which the patients were not receiving care from Selectcare; and for treatment seven days a week for three hours per day, a schedule well in excess of any schedule prescribed for patients at Selectcare.
Roy, Patel and Desai used a third-party billing service to forward the alleged false claims to Medicare, as well as to private insurers such as Blue Cross if the patient had supplemental private insurance, including insurance funded by labor union health and welfare plans.
Between March and July 2011, the defendants allegedly submitted $4,009,094 in false billings for services that were purportedly provided between April 2010 and April 2011, resulting in payments totaling approximately $2,214,424 from Medicare and $320,881 from Blue Cross Blue Shield. The indictment seeks forfeiture of $2,535,305 in alleged fraud proceeds, including $446,974 in funds withdrawn by cashiers’ checks that were seized by the FBI in July 2012.
The government is represented by Assistant U.S. Attorney Maureen Merin. The case was investigated by the FBI, the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), and the U.S. Department of Labor Office of Inspector General (DOL-OIG).
United States v. Cecilia Ibrahim
Dr. CECILIA IBRAHIM, an internal medicine physician who operated Sunrise Medical Center in Flossmoor, was charged with one count of health care fraud for allegedly engaging in a $1.7 million Medicare and private insurance false billing scheme.
Ibrahim, 50, of Frankfort, was charged in an information filed today in U.S. District Court. She will be arraigned on a date to be determined.
Between March 2006 and August 2009, Ibrahim allegedly submitted more than 3,200 false claims to Medicare and Blue Cross Blue Shield using a billing code for spinal decompression neuroplasty, a surgical procedure that she did not perform, when she only performed intervertebral differential dynamics therapy (IDD), a non-surgical procedure. As a result, she allegedly caused a loss of at least $300,000 to Medicare and $550,000 to Blue Cross Blue Shield. The indictment seeks forfeiture of at least $882,500 in alleged fraud proceeds.
The government is represented by Assistant U.S. Attorney Samuel B. Cole. The case was investigated by the FBI, HHS-OIG, and the Railroad Retirement Board Office of Inspector General.
United States v. Ellyse Lamon
ELYSSE LAMON, an account executive at a company that sold durable medical equipment, including back braces and transcutaneous electrical nerve stimulation units, also known as tens units, was charged with one count of health care fraud for allegedly engaging in a $350,000 Medicare false billing scheme.
Lamon, 30, of Elmhurst, was charged in an information filed today in U.S. District Court. She will be arraigned on a date to be determined.
Between October 2010 and May 2011, Lamon allegedly caused her company to submit false claims to Medicare representing that a physician had prescribed back braces and tens units when she knew that no physician had done so and the items were not medically necessary. In order to provide written support for the false claims, Lamon allegedly obtained patient records without a physician’s permission and added false information reflecting that a physician had ordered the equipment for the patients. She allegedly forged doctors’ signatures on documents, including false treatment records she created. Lamon further used patient information she had inappropriately accessed at a pain medicine center in Chicago to set up patient meetings where she falsely told patients that doctors had prescribed the equipment for them, according to the charges.
Lamon allegedly submitted false claims to Medicare totaling $352,685, resulting in payment of at least $206,233 to her medical equipment company. She allegedly profited from these false claims by receiving increased commissions and other benefits from her company.
The government is represented by Assistant U.S. Attorney Kruti Trivedi. The case was investigated by the FBI and is not part of the Medicare Fraud Strike Force operation.
United States v. Nalini Ahluwalia
Dr. NALINI AHLUWALIA, was charged with one count of violating the anti-kickback law for allegedly receiving $1,000 in exchange for referring two patients to a home health care agency in August 2012.
Ahluwalia, 58, of Burr Ridge, was charged in a complaint filed today in U.S. District Court. She will be ordered to appear on a date to be determined.
According to the complaint, a confidential informant who worked at a home health care company in Chicago, told agents that the CI had previously paid kickbacks to Ahluwalia of $400 to $500 per patient in exchange for her referral of Medicare patients to the home health care company.
On Aug. 23, 2012, at the direction of agents, the confidential informant met with Ahluwalia at the doctor’s office in Chicago, and paid her $1,000 for the two Medicare patient referrals in an exchange that was reflected on an audio/video recording, according to the complaint affidavit. In October 2012 and February 2013, the informant allegedly made two additional $500 payments to Ahluwalia in exchange for Medicare patient referrals.
The government is represented by Assistant U.S. Attorney Samuel B. Cole. The case was investigated by the FBI and the HHS-OIG.
United States v. Joseph Dickson
JOSEPH DICKSON, the president and owner of JD Medical Consultants, Inc., a medical marketing company, was charged with one count of violating the anti-kickback law for allegedly receiving $4,200 in exchange for referring patients to a home health care agency in October 2012.
Dickson, 65, of Lansing, was charged in a complaint filed yesterday in U.S. District Court. He will be ordered to appear on a date to be determined.
According to the complaint, a confidential informant who owned a home health care company in the Chicago area, told agents that the CI had previously paid kickbacks to Dickson, among others, for referring Medicare patients to another home health care company where s/he previously worked. Dickson was described as a “middle man” who arranged the referral of patients from a physician to a home health care company, and the confidential informant told agents that the CI had paid Dickson approximately $15,000 for referring about 30 patients between 2006 and 2008.
On Oct. 3, 2012, at the direction of agents, the confidential informant met with Dickson at his office in Chicago, and paid him $4,200 for seven Medicare patient referrals, at $600 each, in an exchange that was reflected on an audio/video recording, according to the complaint affidavit. In December 2012, the informant allegedly made an additional $1,800 payment to Dickson in exchange for Medicare patient referrals and re-certifications.
The government is represented by Assistant U.S. Attorney Joseph H. Thompson. The case was investigated by the FBI and the HHS-OIG.
The charges in these cases carry the following maximum penalties on each count: health care fraud — 10 years in prison and a $250,000 fine, or an alternate fine totaling twice the loss or twice the gain, whichever is greater; and violating the anti-kickback statute — 5 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The Medicare Fraud Strike Force began operating in Chicago in February 2011, and consists of agents from the FBI and HHS-OIG, working together with prosecutors from the U.S. Attorney’s Office and the Justice Department’s Fraud Section. The strike force is are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
Since their inception in March 2007, Strike Force operations in nine locations have charged more than 1,500 defendants who collectively have falsely billed the Medicare program for more than $5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The nationwide takedown was announced today by Attorney General Holder, HHS Secretary Kathleen Sebelius and other federal law enforcement officials. Mr. Shapiro announced the Chicago charges with Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Lamont Pugh III, Special Agent-in-Charge of the Chicago Regional Office of the HHS-OIG, and James Vanderberg, Special Agent-in-Charge of the Labor Department Office of Inspector General in Chicago. The Railroad Retirement Board Office of Inspector General assisted in the Ibrahim investigation.
The public is reminded that indictments, informations, and complaints contain only charges and are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: StopMedicareFraud.gov.
Ibrahim Information
Ahluwalia Complaint
Lamon Information
Dickson Complaint
SelectCare IndictmentFederal Jury Returns Guilty Verdict in Marriage Fraud CaseRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced the guilty verdict of JIAN BING WU yesterday in the United States District Court for Guam. The jury found WU guilty of conspiracy to commit marriage fraud and marriage fraud, based on his fraudulent marriage to Lynda Kathryn Laracuente for an immigration benefit. The charges stem from an Indictment filed on August 22, 2012 against WU and Bradley Jiblits.
The guilty verdict is the result of a six-day jury trial in front of Chief Judge Francis Tydingco-Gatewood. The jury found WU guilty of Count One, Conspiracy to Commit Marriage Fraud, in violation of 18, United States Code, Section 371, and Count Two, Marriage Fraud, in violation of Title 8, United States Code, Section 1325(c). Three co-defendants in related cases pleaded guilty previously and are awaiting sentencing. Defendant Jiblits entered his guilty plea to Conspiracy to Commit Marriage Fraud on November 28, 2012. Lynda Kathryn Laracuente pleaded guilty to Marriage Fraud on November 4, 2011, and Yingzi Zhang pleaded guilty to Aiding and Abetting False Statements on May 3, 2013.
WU’s sentencing hearing is scheduled for August 22, 2013. He faces a statutory maximum penalty of five years imprisonment and a maximum fine of $250,000.
U.S. Attorney Limtiaco stated, “Our immigration laws allow aliens who enter into legitimate marriages with U.S. citizens to gain the right to stay in the United States as permanent resident legal aliens. But aliens who engage in sham marriages to gain legal status in this country, and anyone who helps them to do so, undermine the integrity of that system and commit a fraud against the United States.”
The case was investigated by the Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Stephen F. Leon Guerrero and First Assistant United States Attorney Stephen P. Sinnott.
Fayetteville Man Pleads to Possesion of Stolen Firearm Intended for Use in Terrorist ActivitiesRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that in federal court today ERWIN ANTONIO RIOS, a 19 year old resident of Fayetteville, North Carolina, pled guilty in front of United States Magistrate Judge James E. Gates to possession of a stolen firearm in violation of Title 18, United States Code, Section 922(j).
“Erwin Rios intended to commit violent acts against innocent people in furtherance of his extremist doctrine of hate. As demonstrated in this case, the multi-agency partnerships which make up our local Joint Terrorism Task Force continue to play a critical role in the day-to-day protection of our communities and our national security,” said John Strong, Special Agent in Charge of the Charlotte Division of the FBI.
On February 7, 2013, a Criminal Complaint was issued that charged RIOS with the above offense. According to the investigation, RIOS is a self-proclaimed adherent to the extremist views found within Radical Islam. RIOS desired to travel overseas in order to further what he termed “jihad” and expressly defined as various forms of violence against those he determined to be non-believers – to include U.S. forces. In order to obtain the funds necessary for such travel, RIOS devised a scheme to commit violent robberies within North Carolina. He intended to leave no witnesses alive in order to better secure success. As an initial step, RIOS sought out a firearm and expressed willingness to purchase a stolen hand gun. The FBI subsequently provided RIOS with the opportunity to purchase a purportedly stolen hand gun through a confidential informant. RIOS eagerly provided the funds for purchase of a weapon he believed to be stolen. Immediately afterwards RIOS was taken into custody.
Investigation of this case was conducted by the Federal Bureau of Investigation. Assistant United States Attorney, Jason M. Kellhofer, represented the government.
Elmore County Man Pleads Guilty to Producing Child PornographyRead the Press Release
Montgomery, Alabama - Joshua Ray Parton, age 25, of Elmore County, Alabama, was sentenced on Friday, May 10, 2013, to serve 30 years in federal prison for producing child pornography, U.S. Attorney George L. Beck, Jr., announced. Between 2007 and 2012, Parton raped two minor boys—a twelve-year-old and a nine-year-old—on multiple occasions, using his cell phone camera to capture images of his molestation of the children. Statements by the families of the victims reflected the severe and long-lasting suffering that the children had been through and continued to cope with. In handing down the 30-year prison sentence, Judge Myron Thompson noted the immeasurable trauma that Parton’s actions had wreaked in the lives of his child victims and their families.
“The actions of this defendant were revolting and despicable,” said United States Attorney George L. Beck, Jr. “We hope that this sentence will send a message to others who would prey upon children. We will not tolerate it and they will be prosecuted to the full extent of the law.”
“Sadly, but unfortunately true, these types of sexual assaults continue to plague not only our county, but other locations across the country,” stated Elmore County Sheriff Bill Franklin. “Hopefully, Mr. Parton will have an opportunity to reflect on the behavior he has exhibited while in jail, which I believe everyone hopes is a significant amount of time.”
This case is being brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit justice.gov/psc. For more information about internet safety education, please visit justice.gov/psc/resources.
This case was investigated by the Alabama Bureau of Investigation and the Elmore County Sheriff’s Office with the assistance of the United States Marshal’s Service. The case was prosecuted by Assistant United States Attorney Jared H. Morris.
PRESS CONTACT: Clark Morris
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Fax: (334) 223-7617Elizabeth D. Kupfer Sentenced to Three Years in Prison for Evading Federal TaxesRead the Press Release
ALBUQUERQUE – Elizabeth D. Kupfer, 50, of Rio Rancho, N.M., was sentenced this afternoon to 36 months in federal prison followed by three years of supervised release for her tax evasion conviction. Mrs. Kupfer also was ordered to pay $288,339 in restitution to the IRS. The restitution is to be paid jointly by Mrs. Kupfer and her husband Joseph C. Kupfer, 49, who also was convicted of tax evasion.
Mrs. Kupfer’s sentence was announced by U.S. Attorney Kenneth J. Gonzales, Dawn Mertz, Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation, and Carol K.O. Lee, Special Agent in Charge of the Albuquerque Division of the FBI.
“Paying taxes is an obligation of citizenship and it is every citizen’s duty to pay them honestly and fully,” said U.S. Attorney Kenneth J. Gonzales. “When people like Elizabeth and Joseph Kupfer intentionally dodge their responsibility to pay taxes, honest Americans end up having to pay more. The sentence imposed on Mrs. Kupfer should serve as a warning that those who seek to avoid their tax responsibilities will be prosecuted and punished to the fullest extent of the law.”
“IRS Criminal Investigation will continue to investigate those who cheat their fellow citizens by not paying their taxes. In this case, Mrs. Kupfer intentionally concealed over $750,000 of income. Those who are tempted to commit tax evasion should know that the end result will likely be time in a federal prison” said Dawn Mertz, Special Agent in Charge of the Phoenix Field Office of Internal Revenue Service Criminal Investigation.
Mr. and Mrs. Kupfer initially were charged in Dec. 2010, in a three-count indictment with evading more than $285,000 in federal taxes by failing to report at least $768,333 in taxable income during tax years 2004 through 2006. In July 2011, an 11-count superseding indictment was filed which added Armando G. Gutierrez, 65, of Corpus Christi, Texas, as a defendant, and also added conspiracy and theft of government property charges against Mr. Kupfer and Mr. Gutierrez, and obstruction and money laundering charges against Mr. Gutierrez. Thereafter, the court severed the three tax evasion counts against the Kupfers from the other eight counts in the superseding indictment for purposes of trial.
On Aug. 17, 2012, a federal jury convicted Mr. and Mrs. Kupfer on three tax evasion charges after a five-day trial. The evidence established that, from 2004 through 2006, Mr. Kupfer received income from his business, Kupfer Consulting, and the Kupfers reported income from Kupfer Consulting on their joint personal tax returns. Although Mr. Kupfer received $1,304,421 in revenue from Kupfer Consulting, the Kupfers reported only $502,541 on their federal tax returns and attempted to conceal approximately $768,333 in income by providing incomplete information to their tax preparer. The Kupfers then signed false and fraudulent tax returns, which they submitted to the IRS.
More specifically, the Kupfers claimed $125,969 in taxable income for 2004 but failed to include at least another $140,000 in income, thus evading at least $51,054 in federal taxes. They claimed $170,625 in taxable income for 2005 but failed to include another $170,000 in income, thus evading $64,651 in federal taxes. Finally, they claimed $125,734 in taxable income for 2006 but failed to include at least another $458,333 in income, thus evading $170,470 in federal taxes.
On Jan. 31, 2013, a federal jury found Mr. Kupfer and Mr. Gutierrez guilty of conspiracy and theft of government property charges after an eight-day trial. The jury also convicted Mr. Gutierrez on obstruction of justice and money laundering charges. Sentencing hearings have yet to be set for Mr. Kupfer and Mr. Gutierrez.
This case was investigated by IRS Criminal Investigation and the Albuquerque office of the FBI, and is being prosecuted by Assistant U.S. Attorneys Tara C. Neda and Cynthia L. Weisman.
Drug Trafficker in Eastern Shore Ring Sentenced to 16 Years in PrisonRead the Press Release
Baltimore, Maryland - U.S. District Judge Ellen L. Hollander sentenced Maurice Kenneth Hardy, age 37, of Bridgeville, Delaware, today to 16 years in prison followed by five years of supervised release for conspiring to distribute heroin, cocaine and cocaine base (crack cocaine).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Wicomico County Sheriff Michael A. Lewis; Salisbury Police Chief Barbara Duncan; Chief Michael Phillips of the Fruitland Police Department; U.S. Marshal Johnny Hughes; and Wicomico County State’s Attorney Matthew Maciarello.
According to his guilty plea, from 2009 until his arrest on June 29, 2011, Hardy conspired to sell heroin and cocaine with, or distributed the drugs to, Tereek Nutter and others. Austin Roberts was his primary source of supply. For example, on May 11, 2011, Hardy indicated in a telephone call with a co-conspirator that Roberts would be supplying him with seven kilograms of cocaine for $31,500 per kilogram. The next day in Salisbury, Maryland, Andrew Jackson, under Roberts’ direction, provided several kilograms of cocaine to Hardy. Subsequent to this meeting, law enforcement stopped Jackson’s vehicle and seized over $160,000 from a hidden compartment.
On June 29, 2011, after Hardy obtained 1.027 kilograms of cocaine from a co-conspirator, law enforcement stopped Hardy’s car and seized the cocaine. Law enforcement also executed a search warrant at Hardy’s home and a stash house used by Hardy, and seized a loaded handgun, ammunition, a digital scale, over $10,000, 82.4 grams of cocaine, 41.7 grams of heroin, a pocket scale and a large cocaine press.
During the course of the conspiracy, Hardy and his co-conspirators distributed over 15 kilograms of cocaine, a kilogram of heroin and a quantity of cocaine base.
Austin Roberts, III, age 37, formerly of Elkridge, Maryland; Andrew Jackson, age 39, of Baltimore, Maryland; and Tereek Nutter, age 30, of Salisbury, Maryland, previously pleaded guilty to their participation in the drug conspiracy. Judge Hollander sentenced Jackson to 10 years in prison, Nutter to 151 months in prison and scheduled Roberts’ sentencing for August 9, 2013 at 2:00 p.m.
United States Attorney Rod J. Rosenstein commended the DEA, U.S. Marshals Service and the Wicomico County Narcotics Task Force, comprised of the Maryland State Police, Wicomico County Sheriff’s Office, Salisbury Police Department, Fruitland Police Department, and the Wicomico County State’s Attorney’s Office for their work in this investigation. Mr. Rosenstein thanked Assistant United States Attorney Joshua L. Kaul, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Douglas, Georgia Pharmacist Pleads Guilty in Sex for Drugs ScamRead the Press Release
BRUNSWICK, GA: STANLEY SMITH, 61, of Douglas, Georgia, pled guilty yesterday before Chief U.S. District Court Judge Lisa Godbey Wood for distributing drugs to his customers without a legitimate medical purpose.
According to evidence presented during his guilty plea hearing, SMITH owned and operated Malcolm’s Drug Store located in Douglas, Georgia. A month ago, state and federal investigators received information that Smith had been trading very addictive prescription drugs for sex acts with multiple women since 2010. Some of women were addicts or became addicted to the drugs SMITH provided. In one instance, SMITH provided a woman with up to 360 hydrocodone pills a week. In an effort to hide his criminal activity, SMITH used aliases at various hotels, and would tape drugs and money on the outside of an electric box outside of his pharmacy. When approached by investigating agents, SMITH admitted he had traded drugs for sex for more than two years.
U.S. Attorney Edward Tarver stated, “This defendant used his pharmacy license as a license to deal drugs. He preyed upon those addicted to drugs and caused others to become addicted, all for his own personal gratification. This pharmacist will now exchange a white coat for an orange jumpsuit.”
SMITH faces up to 10 years in prison and a fine up to $500,000. There is no parole in the federal system. SMITH will be sentenced after the U.S. Probation Office completes a presentence investigation.
This case was investigated jointly by the DEA and the Georgia Drugs and Narcotics Agency. E. Greg Gilluly, Jr. is prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Dominican Citizen Arrested After Allegedly Ingesting Pellets of CocaineRead the Press Release
HOUSTON - Mikkail Antonio Nolasco Jimenez, 27, has been arrested and charged with importing cocaine into the United States and conspiracy to possess with the intent to distribute it, United States Attorney Kenneth Magidson announced today. Jimenez, a citizen of the Dominican Republic, was arrested at Bush Intercontinental Airport (IAH) after it was determined he had allegedly ingested 53 pellets containing cocaine.
The criminal complaint filed today alleges that on Saturday, May 11, 2013, Jimenez arrived aboard a flight from Port of Spain Trinidad and Tobago bound for New York. Homeland Security Investigations (HSI) agents became suspicious when Jimenez provided inconsistent statements. The investigation resulted in the discovery of anomalies in his body resembling pellets believed to contain a controlled substance. Jimenez was transported and admitted to an area hospital.
Jimenez allegedly expelled a total of 53 pellets, which contained a substance that field-tested positive for cocaine, according to the complaint.
Jimenez made his made his initial appearance this afternoon before U.S Magistrate Judge Stephen Wm. Smith, at which time he was ordered into custody pending a detention hearing, set for Thursday, May 16.
Upon conviction, Jimenez faces a mandatory minimum of five and up to a 40 years in prison on each of the two counts.
The investigation leading up to the charges was conducted by Homeland Security Investigations and Customs and Border Protection. Assistant United States Attorney Stuart A. Burns is prosecuting the case.
District Man Sentenced to 34-Year Prison Term for Attacking and Threatening Woman in Southeast Washington-Defendant Was on Parole at Time of Attack-Read the Press Release
WASHINGTON - Clarence McCallum, 48, has been sentenced to a 34-year prison term on charges of kidnapping and felony threats stemming from an attack last year against an 18-year-old woman in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
McCallum, of Washington, D.C., has previously been convicted of violent offenses. He pled guilty in this case in October 2012 before he was to go on trial in the Superior Court of the District of Columbia. He subsequently moved to withdraw his plea, but that motion was denied last month. The Honorable Heidi M. Pasichow sentenced him on May 13, 2013. Upon completion of his prison term, McCallum will be placed on five years of supervised release.
According to the government’s evidence, at about 9:30 p.m. on May 27, 2012, the victim was walking home from work when McCallum grabbed her from behind in the 1200 block of V Street SE. He dragged her towards a nearby alley, at which point she managed to break free and run into the middle of the street. When she pulled out her cellphone and told McCallum that she was going to call 911, he told her that he would "get" her and started walking away.
While on the phone with 911, the victim followed McCallum so that he would not get away. She was aided by a neighborhood Good Samaritan who, when informed of what had just happened, agreed to help follow the assailant. After more than 10 minutes of pursuit, all while the victim remained on the line with 911, McCallum slipped into an alley. When he came out on the other side, several minutes later, the Good Samaritan spotted him and pointed him out to the police. After a brief foot chase, McCallum was stopped and placed under arrest.
At the time of the arrest, McCallum had been on parole for barely six weeks. He pled guilty in 1983, in two separate cases, to assault with intent to rape and rape while armed. He also pled guilty in 1984 in Prince George’s County, Md., to charges of kidnapping, robbery with a deadly weapon, and use of a handgun. Since his incarceration for those cases, he had been released on parole four times and had his release revoked four times, all following rearrests for assault-related conduct.
In announcing the sentence, U.S. Attorney Machen praised those who worked on the case from the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Litigation Technology Specialist Anisha Bhatia, Paralegal Specialists Theresa Nelson and Ethel Noble, and Assistant U.S. Attorney Justin Dillon of the Superior Court Homicide Section, who investigated and prosecuted the case.
13-169Deported Alien Charged with Illegally Re-Entering U.S.Read the Press Release
JOHNSTOWN, Pa. - A citizen of Mexico has been indicted by a federal grand jury in Johnstown on a charge of re-entry of an illegal alien, United States Attorney David J. Hickton announced today.
The one-count indictment named Miguel Cortez-Cagal, 32, of Altoona, Pa., as the sole defendant.
According to the indictment, on April 10, 2013, Cortez-Cagal, an alien who had been deported from the United States on Jan. 19, 2010, was found in Altoona, Pa. He had unlawfully re-entered this country without receiving permission from the Secretary of the Department of Homeland Security to do so.
The law provides for a maximum total sentence of two years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Department of Homeland Security/Immigration and Customs Enforcement conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Delwayne Denny Sentenced in U.S. District CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on May 10, 2013, before Chief U.S. District Judge Dana L. Christensen, DELWAYNE DENNY, a 30-year-old resident of Box Elder and an enrolled member of the Chippewa Tribe, was sentenced to a term of:
Prison: 85 months
Special Assessment: $100
Supervised Release: 10 years
DENNY was sentenced in connection with his guilty plea to sexual abuse.
In an Offer of Proof filed by Assistant U.S. Attorney Danna R. Jackson, the government stated it would have proved at trial the following:
On March 11, 2012, DENNY, along with three other adults, returned to a house located on the Rocky Boy's Indian Reservation. The victim, who was very intoxicated, was taken into one of the bedrooms, by two concerned teenage boys, to "sleep it off." At some point in the evening DENNY went into the bedroom and engaged in sexual intercourse with the victim, even though she was passed out.
The victim regained consciousness and demanded that DENNY stop having sex with her. The victim grabbed clothes and left the house to look for help. Law enforcement had been called by a neighbor. Law enforcement found the victim in the fetal position in the middle of the roadway, crying hysterically. The victim was transported to the emergency room in Havre and consented to a sexual assault exam.
Because there is no parole in the federal system, the "truth in sentencing" guidelines mandate that DENNY will likely serve all of the time imposed by the court. In the federal system, DENNY does have the opportunity to earn a sentence reduction for "good behavior." However, this reduction will not exceed 15% of the overall sentence.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the Rocky Boy's Police Department.
Delaware County Man Charged in Mortgage Fraud ConspiracyRead the Press Release
Thomas C. Phelan, 34, of Wayne, PA, is charged by Indictment, unsealed today, with participating in a mortgage fraud conspiracy involving more than five properties and more than $1 million in fraudulent loan proceeds, announced United States Attorney Zane David Memeger. Phelan is charged with one count of conspiracy to commit loan and wire fraud, and three counts of loan fraud and one count of wire fraud.
If convicted the defendant faces a maximum possible sentence of 115 years imprisonment, a five year period of supervised release, $4,250,000 fine and a $500 mandatory special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Joan E. Burnes.Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Defendant Sentenced to 15 Years for Distribution of Child PornographyRead the Press Release
OAKLAND – Clyde Craig was sentenced yesterday to 15 years in prison for distribution of child pornography, United States Attorney Melinda Haag announced.
Craig pleaded guilty on January 7, 2013, to distribution of child pornography. According to the plea agreement, Craig admitted to distributing over the Internet images and videos of minors engaged in sexually explicit conduct with another person. Craig, 56, of San Ramon, was indicted by a federal grand jury on July 12, 2012.
The sentence was handed down by U.S. District Court Judge Saundra Brown Armstrong following a guilty plea on Count One of the Indictment in violation of 18 U.S.C. § 2252(a)(2). Judge Armstrong also sentenced the defendant to a ten year period of supervised release and ordered him to register as a sex offender and to participate in a sex offender treatment program.
Rodney C. Villazor is the Assistant U.S. Attorney who is prosecuting the case. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
DMI Gang Member Exiled to 16 Years in Prison for Racketeering, Including a MurderRead the Press Release
Baltimore, Maryland - U.S. District Judge Richard D. Bennett sentenced Gregory Cook, age 37, of Baltimore, Maryland, today to 16 years in prison, followed by five years of supervised release, for conspiracy to participate in a violent racketeering enterprise known as the Dead Man Incorporated (DMI).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Steven L. Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief James W. Johnson of the Baltimore County Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Commissioner Anthony W. Batts of the Baltimore Police Department; Anne Arundel County Police Chief Larry W. Tolliver; Secretary Gary D. Maynard of the Maryland Department of Public Safety and Correctional Services; Baltimore County State’s Attorney Scott Shellenberger; Baltimore City State’s Attorney Gregg L. Bernstein; and Anne Arundel County State’s Attorney Frank R. Weathersbee.
According to court documents, DMI was founded originally in 2000 as a prison gang in Maryland, and at its inception was closely allied to the Black Guerilla Family (BGF), another prison gang. By 2006, DMI expanded its membership by recruiting members outside prison, including women.
According to Cook’s plea agreement, he was a member of DMI and in the summer of 2009 was in the Brooklyn, Maryland unit of the gang. Cook admitted that he trafficked in cocaine, crack, marijuana and prescription pills with other DMI members. In August and September 2009, one of Cook’s co-conspirators ordered a “hit” on an individual who owed him a drug debt. DMI member Walter Milewski was recruited to commit the murder, but killed the wrong person. As dictated by DMI rules, Cook and his co-conspirator sought the permission of a DMI “Elder” to murder Milewski, because they believed he was a risk to reveal what happened to police and as punishment for killing the wrong man. The murder was authorized and Cook was notified by a call to his cell phone when Milewski was killed.
Two of the founders of DMI, Perry Roark, a/k/a Rock, “Pops,” “Slim,” “Saho the Ghost,” age 42, and James Sweeney, age 36, of Baltimore, previously pleaded guilty and were both sentenced to life in prison.
Mr. Rosenstein praised the FBI, ATF, Maryland Department of Public Safety and Correctional Services; Baltimore County Police Department; Anne Arundel County Police Department; Baltimore City Police Department; the Maryland State Police; Baltimore County State’s Attorney’s Office; Baltimore City State’s Attorney’s Office; and Anne Arundel County State’s Attorney’s Office for their assistance in this investigation and prosecution.
United States Attorney Rod J. Rosenstein thanked Assistant United States Attorneys Robert R. Harding and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Cuban Found Guilty of Unlawfully Possessing Debit and Credit Card Account NumbersRead the Press Release
McALLEN, Texas - Pedro Garcia-Morales, a legal permanent resident from Cuba living in Donna, has been found guilty of possession of more than 15 unauthorized access devices with intent to defraud, United States Attorney Kenneth Magidson announced today. The McAllen federal jury returned its verdict just a short time ago following one day of trial and less than two hours of deliberation.
During trial, the government contended Garcia-Morales, 41, knowingly possessed more than 500 account numbers linked to credit and debit cards belonging to people from all over the United States.On Jan. 11, 2013, a search warrant was executed at the defendant’s home, at which time agents discovered two laptops, two flash drives, a credit card encoder and 49 gift/prepaid cards that had been encoded with stolen/unauthorized debit or credit card account numbers. The government proved Garcia-Morales knew the cards were to be used to make fraudulent purchases.
In fact, testimony of witnesses established that over a two-year period, Garcia-Morales used international hacking websites to purchase hundreds of account numbers. He then wired money internationally to hackers in China, Vietnam, Romania and the Ukraine. Encoding software on his laptops and flash drives was used to transfer the purchased account numbers on to the magnetic strips of gift/prepaid cards. The cards could then be used at retail stores to make seemly legitimate purchases. However, use of the cards unlawfully charged those transactions to others’ credit and debit card accounts.
U.S. District Judge Micaela Alvarez, who presided over the trial, has set sentencing for July 30, 2013, at 2:00 p.m., at which time he faces up to 10 years in prison and a possible $250,000 fine. He has been in custody since his arrest where he will remain pending the sentencing hearing.
U.S. Secret Service and the Hidalgo County Sheriff’s Office investigated. The case is being prosecuted by Assistant United States Attorneys Kristen Rees and Patricia Rigney.
Community Mental Health Center Program Coordinator<br /> Sentenced to 70 Months for Role in $63 Million Fraud SchemeRead the Press Release
WASHINGTON – A former program coordinator at the defunct health provider Health Care Solutions Network Inc. (HCSN) was sentenced in Miami to 70 months in prison today for her role in a $63 million fraud scheme.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Michael B. Steinbach, Special Agent in Charge of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office, made the announcement after sentencing by U.S. District Judge Cecilia M. Altonaga.Dana Gonzalez, 43, of High Point, N.C., pleaded guilty on March 6, 2013, to conspiracy to commit health care fraud. In addition to the prison sentence, Gonzalez was also sentenced to three years of supervised release and ordered to pay $19,428,120 in restitution.
During the course of the conspiracy, Gonzalez was employed as a therapist and program coordinator of HCSN’s Partial Hospitalization Program (PHP). A PHP is a form of intensive treatment for severe mental illness.
According to court documents, HCSN of Florida (HCSN-FL) operated community mental health centers at two locations. Gonzalez was aware that HCSN-FL paid illegal kickbacks to owners and operators of Miami-Dade County Assisted Living Facilities (ALF) in exchange for patient referral information to be used to submit false and fraudulent claims to Medicare and Medicaid.
Gonzalez admitted that she routinely fabricated medical records for purported mental health treatment that were used to support false and fraudulent claims to health care benefit programs, including Medicare and Medicaid. Gonzalez admitted that she routinely fabricated these medical records, despite knowing that many of the ALF referral patients were ineligible for PHP services because many patients suffered from mental retardation, dementia and Alzheimer's disease. Gonzalez, an unlicensed clinical social worker intern at the time, also admitted to providing unlicensed therapy to PHP patients when licensed therapists were absent.
In total, Gonzalez admitted that during her employment at HCSN, she and her co-conspirators submitted approximately $46,959,975 in false and fraudulent claims. According to court documents, from 2004 through 2011, HCSN billed Medicare and the Florida Medicaid program approximately $63 million for purported mental health services.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case was prosecuted by Trial Attorney Allan J. Medina and former Special Trial Attorney William J. Parente of the Criminal Division’s Fraud Section. In support of the Medicare Fraud Strike Force, the FBI Criminal Investigative Division’s Financial Crimes Section has funded the Special Trial Attorney position.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .
Community Health Center Program Coordinator Sentenced to 70 Months for Role in $63 Million Fraud SchemeRead the Press Release
A former program coordinator at the defunct health provider Health Care Solutions Network Inc. (HCSN) was sentenced in Miami to 70 months in prison today for her role in a $63 million fraud scheme.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; Michael B. Steinbach, Special Agent in Charge of the FBI's Miami Field Office; and Special Agent in Charge Christopher B. Dennis of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office, made the announcement after sentencing by U.S. District Judge Cecilia M. Altonaga.
Dana Gonzalez, 43, of High Point, N.C., pleaded guilty on March 6, 2013, to conspiracy to commit health care fraud. In addition to the prison sentence, Gonzalez was also sentenced to three years of supervised release and ordered to pay $19,428,120 in restitution.
During the course of the conspiracy, Gonzalez was employed as a therapist and program coordinator of HCSN’s Partial Hospitalization Program (PHP). A PHP is a form of intensive treatment for severe mental illness.
According to court documents, HCSN of Florida (HCSN-FL) operated community mental health centers at two locations. Gonzalez was aware that HCSN-FL paid illegal kickbacks to owners and operators of Miami-Dade County Assisted Living Facilities (ALF) in exchange for patient referral information to be used to submit false and fraudulent claims to Medicare and Medicaid.
Gonzalez admitted that she routinely fabricated medical records for purported mental health treatment that were used to support false and fraudulent claims to health care benefit programs, including Medicare and Medicaid. Gonzalez admitted that she routinely fabricated these medical records, despite knowing that many of the ALF referral patients were ineligible for PHP services because many patients suffered from mental retardation, dementia and Alzheimer's disease. Gonzalez, an unlicensed clinical social worker intern at the time, also admitted to providing unlicensed therapy to PHP patients when licensed therapists were absent.
In total, Gonzalez admitted that during her employment at HCSN, she and her co-conspirators submitted approximately $46,959,975 in false and fraudulent claims. According to court documents, from 2004 through 2011, HCSN billed Medicare and the Florida Medicaid program approximately $63 million for purported mental health services.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case was prosecuted by Trial Attorney Allan J. Medina and former Special Trial Attorney William J. Parente of the Criminal Division’s Fraud Section. In support of the Medicare Fraud Strike Force, the FBI Criminal Investigative Division’s Financial Crimes Section has funded the Special Trial Attorney position.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,480 defendants who have collectively billed the Medicare program for more than $4.8 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Child Pornography Producer and Distributor Sentenced to Federal PrisonRead the Press Release
Fort Myers, FL - U.S. District Judge John Steele today sentenced Raymond Lugo (38, Punta Gorda) to 22 years in federal prison, to be followed by lifetime supervised release, for producing child pornography. The court also ordered Lugo to forfeit his computers and camera, which are traceable to proceeds of the offense. Lugo pleaded guilty on October 31, 2012.
According to court documents, Lugo victimized an approximately 2 year-old child on multiple occasions, for the purpose of producing child pornography photographs. Lugo photographed himself sexually molesting the child. He then traded those images with others for the purpose of obtaining other child pornography images.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Tama Koss Caldarone.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Carroll County Company Founder Pleads Guilty to $1.9 Million Securities FraudRead the Press Release
Baltimore, Maryland - John F. “Jef” Curran, III, age 42, of Westminster, Maryland pleaded guilty today to securities fraud, in connection with the sale of $1.9 million worth of stock in his company, Gargoyles, Inc.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.
According to the statement of facts that is part of his plea agreement, Curran was the founder, president and single largest shareholder of Gargoyles, Inc., located in Westminster, Maryland. Gargoyles was a self-described “advanced materials application company,” purportedly doing business with customers in a variety of settings including the military and law enforcement.
From January 2009 to September 2010, Curran sold approximately $1.9 million worth of Gargoyles stock to investors. Curran admitted that he falsely represented to investors and potential investors that Gargoyles had customers, sales contracts and purchase orders for its products when, in fact, it did not. Curran also misrepresented his education to investors.
As part of his plea, Curran is obligated to pay restitution up to the amount of $1,963,065, to refund to any investor who so wishes, the money they invested in Gargoyles, Inc. Investors will be notified of the option of receiving a refund, and will have 30 days from the receipt of the notice to make the refund request.
As part of his plea agreement, and to resolve In the Matter of John Francis Curran, III and Gargoyles, Inc., Case No. 2010-0184, Curran and Gargoyles, Inc. agree to the entry of a consent order with the Maryland Securities Division of the Office of the Maryland Attorney General prohibiting Curran from violating the Maryland Securities Act and permanently barring Curran from selling or offering for sale securities in Maryland.
Curran faces a maximum sentence of 20 years in prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for August 4, 2013, at 3:00 p.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein thanked the FBI and U.S. Postal Inspection Service for their work in the investigation and thanked the Securities Division of the Office of the Maryland Attorney General for its assistance in the case. Mr. Rosenstein praised Assistant U.S. Attorney Leo Wise, who is prosecuting the case.
Camden County, N.J., Man Sentenced to 10 Years in Prison for Conspiring to Distribute 13 Kilograms of CocaineRead the Press Release
CAMDEN, N.J. – A Camden County, N.J., man was sentenced today to 120 months in prison for attempting to purchase 13 kilograms of cocaine for distribution in and through New Jersey, U.S. Attorney Paul J. Fishman announced.
Jamal Herrin, 40, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an Information charging him with one count of knowingly and intentionally conspiring to distribute and possess with intent to distribute more than five kilograms of cocaine. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
The investigation into Herrin began in April 2012, when the U.S. Drug Enforcement Administration learned that Herrin – who was on bail pending state murder charges – was interested in purchasing large quantities of cocaine. Herrin admitted that he negotiated the purchase of 13 kilograms of cocaine and amassed more than $325,000 to purchase the cocaine.
In addition to the prison term, Judge Rodriguez sentenced Herrin to five years of supervised release.
U.S. Attorney Fishman credited special agents of the Drug Enforcement Administration’s Camden Resident Office, under the direction of Acting Special Agent in Charge Robert G. Koval in Newark; the Camden County Prosecutor’s Office; the Rowan University Police Department; the Winslow Township Police Department; the Gloucester County Prosecutor’s Office; and local law enforcement agencies in support of the Camden division of the Philadelphia-Camden High Intensity Drug Trafficking Areas task force.The government is represented by Assistant U.S. Attorney Alyson M. Oswald of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel: Brian J. McMonagle Esq., PhiladelphiaCalifornia Man Sentenced to Prison, Ordered to Pay $1.5 Million for Scheme That Swindled New Jersey InvestorsRead the Press Release
TRENTON, N.J. – A man who perpetrated a million-dollar investment fraud from California that defrauded New Jersey victims was sentenced today to 46 months in prison for crimes related to the scheme, U.S. Attorney Paul J. Fishman announced.
Robert Schroy, 68, of Placentia, Calif., previously pleaded guilty to a criminal information charging him with one count each of wire fraud and tax evasion. U.S. District Judge Joel A. Pisano, who accepted the plea, also imposed the sentence today in Trenton federal court.
According to documents filed in the case and statements made in court:
From 2004 through 2009, Schroy solicited people to invest in an alleged “international bank trade.” He admitted that he and fellow conspirators falsely promised prospective investors extraordinary gains – ranging between 10 and 100 percent per week for a minimum period of 25 weeks – plus the return of their principal investment. Based on Schroy’s misrepresentations, numerous investors, including investors in New Jersey, wired investment monies to accounts controlled by Schroy and others. Although the money was wired to the designated accounts, Schroy admitted it was not invested in any bank trade. Instead, he and other conspirators used it for personal expenditures, including automobiles, vacations and meals at restaurants. In total, Schroy admitted they misappropriated at least $1 million in investor money.
In pleading guilty to the tax evasion count, Schroy specifically admitted he failed to file a 2007 U.S. Individual Income Tax Return and failed to report $479,566 of taxable income, upon which an additional tax of $151,781 was owed to the IRS.
In addition to the prison term, Judge Pisano sentenced Schroy to serve three years of supervised release and ordered him to pay $1,540,044 in restitution.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, IRS-Criminal Investigation, under the direction of Special Agent in Charge Shantelle P. Kitchen, and the N.J. Bureau of Securities, under the direction of Bureau Chief Abbe R. Tiger, for their work in the investigation.
The government is represented by Deputy Chief Christopher J. Kelly of the U.S. Attorney’s Office Economic Crimes Unit in Newark.This case was brought in coordination with President Barack Obama’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.
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Defense counsel: Joshua Markowitz Esq., Lawrenceville, N.JCalifornia Man Indicted for Allegedly Distributing Crack Cocaine and Marijuana in MinnesotaRead the Press Release
MINNEAPOLIS—Earlier today in federal court, a 30-year-old man from Sacramento, California, was indicted for allegedly distributing controlled substances in Minnesota. Demar Deshawn Powell was specifically charged with one count of conspiracy to distribute or possess with intent to distribute a controlled substance and one count of attempt to distribute or possess with intent to distribute a controlled substance.
The indictment alleges that on September 21, 2012, Powell distributed a controlled substance. A law enforcement affidavit filed in the case states that on September 20, 2012, a suspicious package came into the Minneapolis-St. Paul International Airport. An officer in the K-9 unit purportedly notified authorities that a drug-sniffing dog had alerted to narcotics in the package. During the subsequent execution of a search warrant on the parcel, which was being shipped from Sacramento to a Bloomington address, authorities allegedly found approximately 283 grams of crack cocaine and 123.5 grams of marijuana. On September 21, 2012, the package was delivered to the Bloomington address. The police then executed a search warrant on the package and arrested Powell when he later claimed it.If convicted, Powell faces a potential maximum penalty of life in prison, because he has been convicted of felony drug charges in the past. Any sentence would be determined by a federal district court judge. This case is the result of an investigation by the United States Postal Inspection Service, the Bloomington Police Department, and the Minneapolis-St. Paul International Airport Police Department, with cooperation from the Sacramento County Sheriff’s Office in California. The case is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.
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.
California Jewelry Store Owner Sentenced to Prison for Conspiracy to Defraud the United States and Conspiracy to Launder the Proceeds of Bank FraudRead the Press Release
Safieh Fard, 52, of Escondido, Calif., was sentenced late yesterday to 63 months in prison by U.S. District Judge Cormac J. Carney. Fard was also ordered to pay $594,000 in restitution to the Internal Revenue Service (IRS) for unpaid individual income taxes. Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally, U.S. Attorney Andre Birotte Jr., and the IRS made the announcement.
Fard was convicted by a Santa Ana, Calif., jury on Nov. 21, 2012, of one count of conspiracy to defraud the IRS and one count of conspiracy to launder the proceeds of bank fraud. Fard’s co-conspirators, her sister Sedigheh Bahramian, and two of her sons, Mohsen Kikalaye and Ahmad Kikalaye, pleaded guilty and were sentenced to related counts of bank fraud in 2010.
According to the indictment and evidence introduced at trial, starting in 1997 and continuing through 2004, Fard and her co-conspirators purchased valuable residential real estate properties, including numerous beachfront properties in Newport Beach, Calif. To obtain mortgages to purchase these properties, Fard and her co-conspirators provided false information to federally insured banks that substantially overstated their income and assets on mortgage applications. Fard submitted mortgage applications that falsely stated she earned over $40,000 per month, despite claiming no taxable income on her federal income tax returns during the eight year conspiracy.
Evidence introduced at trial established that Fard and her co-conspirators bought, sold, and transferred ownership of the properties between and among themselves. Ultimately, the properties were sold to third parties resulting in substantial monetary gain. Fard and her co-conspirators then failed to report capital gains on more than $3.7 million from these sales on their federal income tax returns.
The evidence further established that Fard and her co-conspirators Mohsen Kikalaye and Ahmad Kikalaye sold Newport Beach properties to unrelated third parties and received the proceeds in a large lump-sum payment by either wire transfer or check. Fraud proceeds were then transferred through multiple bank accounts to an account in the name of Fard’s co-conspirator Ahmad Kikalaye, who withdrew proceeds in cash in amounts slightly below the $10,000 federal reporting requirement. Fraud proceeds were also used to buy new real estate properties.
The case was investigated by special agents from IRS - Criminal Investigation and the Department of Homeland Security - Homeland Security Investigations and prosecuted by Tax Division Trial Attorneys Erin S. Mellen and Mark L. Williams, with valuable support from the U.S. Attorney’s Office in Santa Ana, Calif.
Business Owners; Brothers Sentenced for Employing Unauthorized AliensRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Geoffrey Lechner, 52, of Brighton, N.Y., and his brother, Douglas Lechner, 51, of Rochester, N.Y., who were convicted of employing unauthorized aliens, were fined $3,000 each by U.S. Magistrate Judge Marian W. Payson.
Assistant U.S. Attorney Marisa J. Miller, who handled the case, stated that the brothers are the principal owners of Clover Lawn Care. The defendants hired two or more aliens to work at the lawn care and landscaping company despite knowing that they were not authorized to work in the United States. The matter came to the attention of law enforcement in June 2012, following an accident involving a Clover Lawn Care vehicle driven by four employees in Brighton, N.Y.
The sentencing is the culmination of an investigation on the part of Special Agents of the Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, Agents of the United States Border Patrol under the direction of Assistant Patrol Agent in Charge Michael Werthman, and Officers of the Brighton Police Department, under the direction of Chief Mark T. Henderson.Brother and Sister Team Sentenced to 10 Months in Prison for Running a Fraudulent Document RingRead the Press Release
OAKLAND – Ana Mendoza-Roman and Ricardo Mendoza-Roman were sentenced today to 10 months in prison and three years of supervised release for conspiracy to produce and transfer false identification documents, United States Attorney Melinda Haag announced. Ana and Ricardo Mendoza-Roman are siblings who are citizens of Mexico and are unlawfully present in the United States.
In their guilty pleas, the defendants admitted to conspiring to produce and sell false alien registration cards which appeared to be issued by or under the authority of the Department of Homeland Security, and Social Security cards, which appeared to be issued by or under authority of the Social Security Administration.
On August 23, 2012, Homeland Security Investigation (HSI) Task Force agents executed federal search warrants at the defendants’ residence and on two vehicles owned by the defendants. During the execution of these search warrants, agents uncovered a document mill which contained fraudulent document manufacturing equipment including a laminator, printer, computer, seals, card stock and thousands of business cards offering these illegal services. A 9mm Beretta handgun and multiple high-capacity magazines were also seized from the residence.
“These sentences should serve as a reminder about the consequences facing those involved in the counterfeit document trade,” said Clark Settles, Special Agent in Charge for HSI San Francisco. “Individuals who knowingly and indiscriminately sell phony identity documents are putting the security of our communities and even our country at risk, which is why these cases are a priority for Homeland Security Investigations.”
The sentence was handed down by U.S. District Court Judge Sandra Brown Armstrong following defendants’ guilty pleas to violations of 18 U.S.C. § 371. The defendants have remained in federal custody since their arrest on August 23, 2012.
Assistant U.S. Attorney Christina McCall and Special Assistant U.S. Attorney Tamara Weber prosecuted the case with the assistance of Vanessa Vargas and Jeanne Carstensen. This prosecution was the result of an investigation by the HSI-led Document and Benefit Fraud Task Force and the Richmond Police Department into an organization that manufactured and sold counterfeit identity documents in Richmond, Pittsburg, Concord and San Rafael, California.
Birmingham Tax-Preparer Gets Three Years in Prison for Aiding Filing of False Tax ReturnsRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a Birmingham tax-preparer to three years in prison and ordered her to repay $322,876 to the U.S. Treasury for aiding and abetting the filing of false income tax returns, announced U.S. Attorney Joyce White Vance and IRS Criminal Investigation Division Special Agent in Charge Veronica Hyman-Pillot.
U.S. District Judge R. David Proctor sentenced SALLY ELIZABETH WYNN, 65, on three counts of aiding and abetting the filing of a false return. A federal jury convicted her on those charges following a three-day trial in January. Wynn was a 20-year professional tax-preparer and owner of Centerpoint Financial Services. After serving her prison sentence, she must serve a year on probation.
"Our country offers many benefits and opportunities to people from all walks of life, but with those benefits comes the obligation to pay taxes on earnings," Vance said. "Ms. Wynn's conviction and sentence make clear that tax preparers who do not follow the income tax laws will be prosecuted and ordered to pay back what they stole," she said.
"Concealing income in order to evade taxes is a serious offense," Hyman-Pillot said. "It is our hope that today's sentence will send a strong message that tampering with the integrity of our nation's tax system can result in jail time and that these violations must be, and will continue to be pursued in order to obtain justice."
According to evidence at trial, Wynn helped one of her clients hide income from the Internal Revenue Service for the 2005, 2006, and 2007 tax years. The evidence showed that Wynn provided tax-preparation and bookkeeping services to Gonzalez Construction Incorporated and its owner, Jose Gonzalez. As a result, Wynn knew that Gonzalez received at least $340,000 in personal income during each of the years in question. Nevertheless, she prepared tax returns for him that claimed between $55,000 and $66,000 in total income during each of the three years.
Gonzalez still faces criminal charges for his role in these crimes.
The IRS investigated the case. Assistant U.S. Attorneys Melissa K. Atwood and Robin B. Mark prosecuted the case.
Belleville Man Sentenced to Prison Term for Felon in Possession of A FirearmRead the Press Release
Courtney Darris, 22, of Belleville, Illinois, was sentenced to 70 months in prison in the federal district court for Unlawful Possession of a Firearm by a Previously Convicted Felon, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. Darris was also order to pay a $100 special assessment, a $500 fine and to serve a term of 2 years of supervised release following imprisonment. There is no parole in the federal system. Darris has been in custody since his arrest on September 17, 2012.
“I hope that cases like this will help send out messages that my office will continue to vigorously prosecute any illegal use of firearms and that the penalties are severe.” said United States Attorney Wigginton.
Court documents establish that on September 17, 2012 at 5:00 p.m., Darris was standing outside the Food Mart on Carlyle Avenue in Belleville, Illinois when a vehicle pulled onto the lot. At that time, Darris withdrew a firearm from his backpack and fired several shots in the direction of the vehicle. Darris was arrested later that same day and found to be in possession of a Hi-Point 9mm pistol with a fully loaded magazine. The serial number of the firearm had been filed off. Darris agreed to a recorded interview with law enforcement at which time he admitted to being in possession of the firearm and to shooting the gun in the direction of the vehicle while at the Food Mart.
The investigation was conducted by the St. Clair County Sheriff’s Department and the Bureau of Alcohol, Tobacco and Firearms (ATF). The case was prosecuted by Assistant United States Attorney Ali Summers.
Allentown Mortgage Co.'s Former Manager Pleads Guilty to FraudRead the Press Release
PHILADELPHIA – Joel Tillett, 36, of Whitehall, PA, pleaded guilty yesterday to charges in connection with a mortgage fraud conspiracy. Tillett, the former general manager of Madison Funding, Inc., a now-defunct Allentown mortgage loan origination company, pleaded guilty to conspiracy and to forging or counterfeiting loan documents. The fraud conspiracy caused mortgage lending businesses to issue millions of dollars’ worth of loans that were based on false information.
Tillett was indicted along with five former employees: Jason Boggs, Claribel Gonzalez, Florentina Peralta, Ghovanna Gonzalez, all of Allentown, and Angela Diaz, of Bethlehem. Denise Peralta, also of Allentown, was charged by information.
Tillett admitted in court that between October 2006 and at least June 2008, he conspired to defraud mortgage lenders by submitting loan applications that contained false information about the borrowers which was often supported by falsified, forged, and altered documents. The mortgage lenders, which included Washington Mutual Inc., Countrywide Home Loans, Mortgage IT, International Mortgage Corporation, and Security Atlantic Mortgage Company, relied on the fraudulent representations and provided Madison Funding’s clients with millions of dollars in loans to purchase real estate. Each funded loan generated thousands of dollars’ worth of commissions to Madison Funding and its employees. Many of those loans have since defaulted and some of them were insured by the Federal Housing Administration (“FHA”), which was an agency within the United States Department of Housing and Urban Development (“HUD”).
A sentencing hearing for Tillett is scheduled for August 14, 2013. He faces a maximum possible sentence of seven years in prison,three years of supervised release, a $500,000 fine, and a $200 special assessment.
The case was investigated by the Department of Housing and Urban Development Office of the Inspector General, the Federal Deposit Insurance Corporation Office of Inspector General, and the Federal Housing Finance Agency Office of Inspector General. It is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Albuquerque Man Sentenced to Federal Prison for Involuntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Lawrence Presley O’Dell, 25, an enrolled member of the Navajo Nation who resides in Albuquerque, N.M., was sentenced this morning to 37 months in federal prison followed by three years of supervised release for his involuntary manslaughter conviction. O’Dell also was ordered to pay $9,455.74 in restitution to cover funeral costs for the victim.
O’Dell was arrested in Oct. 2012, and charged with causing the death of a Navajo man, Ramus James, on June 25, 2012, while driving while intoxicated in Red Rock, N.M., which is located on the Navajo Indian Reservation. O’Dell has been in federal custody since his arrest.
In Feb. 2013, O’Dell pleaded guilty to a felony information charging him with involuntary manslaughter. In entering his guilty plea, O’Dell admitted driving his vehicle at a high rate of speed while under the influence of intoxicating beverages on June 25, 2012. O’Dell admitted crashing the vehicle and killing the passenger in the vehicle.
This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and was prosecuted by Presiliano A. Torrez.16 Defendants, Including Mexican Drug Cartel Members, Charged in Cocaine ConspiracyRead the Press Release
Little Rock - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas and Randall C. Coleman, Special Agent in Charge of the Federal Bureau of Investigation, Little Rock Field Office announced that a 25-count indictment handed down by a federal grand jury on May 2, 2013, was unsealed today charging sixteen defendants in Arkansas, Texas, and Mexico with multiple drug offenses. The indictment alleges the lead defendant, Idalia Ramos Rangel, a/k/a La Tia or Big Momma, is a high-ranking member of the Gulf Cartel who directs a drug trafficking organization based in Matamoros, Mexico. That organization is responsible for the distribution of multiple hundreds of kilograms of cocaine in the United States.
The Indictment is the result of a large-scale investigation into cocaine and narcotics trafficking from Mexico to Arkansas. Agents determined that Rangel's drug trafficking organization is responsible for delivery of more than one hundred kilograms of cocaine in Arkansas. The charges in the Indictment include conspiracy to possess with intent to distribute more than five kilograms of cocaine, distribution of cocaine and use of a telephone to facilitate a drug trafficking crime. All sixteen defendants are charged with conspiracy to distribute cocaine. If convicted of conspiracy to distribute more than five kilograms of cocaine, each defendant will face a sentence of not less than 10 years to life imprisonment.
"The arrests made in this case have dismantled a primary supply of cocaine into the State of Arkansas," stated Thyer. "From the Gulf Cartel to prison to the streets of Central Arkansas, this was not a typical case to investigate. I want to thank the FBI for their leadership in this investigation. I also want to acknowledge the significant investigative work the Federal Bureau of Prisons and the Little Rock Police Department provided. Those who do business with drug cartels should be on notice that law enforcement is investigating and will commit the resources necessary to punish them for their illegal trafficking."
"Today, a strong group of dedicated federal, state, and local law enforcement officials - from Arkansas to Texas - came together to disrupt a criminal drug enterprise directly linked to the Gulf Cartel," stated FBI Special Agent in Charge Randall Coleman. "It was simply a case of outstanding teamwork. In Arkansas, we will continue to work together to disrupt and dismantle those groups who choose to conduct their criminal enterprise activities here."
According to the indictment, Rangel's family members are alleged to be involved in the drug distribution conspiracy. Her son, Mohammed Kazam Martinez, a/k/a Mo, a federal inmate in the Bureau of Prisons, recruited inmates in the Federal Correctional Complex at Forrest City, Arkansas, to distribute Rangel's Gulf Cartel cocaine upon their release from prison. Those inmates included Emmanuel Ilo, a/k/a Chi Chi or Chi, and Mervin Johnson, a/k/a Slim, who the indictment alleges began distributing kilogram and multi-ounce quantities of the cocaine in Central Arkansas upon their release from federal prison. Mohammed Martinez communicated with members of this drug trafficking organization using the prison telephone and e-mail systems to coordinate the distribution of cocaine to, and the collection of drug proceeds from, former federal inmates and others. Another of Rangel's sons, Homar Martinez, and one of her daughters, Nishme Martinez, are also charged as part of the conspiracy.
The indictment alleges that Ilo distributed Rangel's Gulf Cartel cocaine to Dwatney Noid; Dwight McLittle, a/k/a D.A.; Lamont Williams, a/k/a Peter Rabbit; Gerard Trice, a/k/a Fly; Tarvars Honorable, a/k/a Pudgy; and others, for redistribution to customers in the Eastern District of Arkansas. The FBI made multiple controlled purchases of cocaine in Central Arkansas totaling more than one kilogram during the investigation of this case.
The investigation was conducted by the FBI, with substantial assistance from the Federal Bureau of Prisons and the Little Rock Police Department. The case is being prosecuted by Assistant United States Attorneys Michael Gordon and Chris Givens.
An indictment contains only allegations. A defendant is presumed innocent unless and until proven guilty.
DEFENDANTS/CHARGES - 11 in custody - 10 arrested today
Conspiracy to possess with intent to distribute cocaine:
- Idalia Ramos Rangel, 57, Matamoros, Mexico
- Mohammed Kazam Martinez, 31, Beaumount, TX
- Emanuel Ilo, 34, Little Rock, AR
- Mervin Johnson, 37, Little Rock, AR
- Homar Martinez, 31, Brownsville, TX
- Manuel Garza, 31, Brownsville, TX
- Jaime Benevides, 27, Austin, TX
- Nishme Martinez, 26, Austin, TX
- Denice Duran Martinez, 34, Brownsville, TX
- Yadira Anahy Martinez, 36, Brownsville, TX
- Dwatney Noid, 30, Little Rock, AR
- Dwight McLittle, 27, Little Rock, AR
- Shanieka Tatum, 35, Little Rock, AR
- Lamont Williams, 34, Little Rock, AR
- Gerard Trice, 29, Little Rock, AR
- Tarvars Honorable, 33, Little Rock, AR
In addition to the conspiracy charges, the following defendants are also charged with the following crimes:
- Emanuel Ilo, distribution of cocaine (6 counts), use of a telephone to facilitate a drug trafficking crime (2 counts).
- Mervin Johnson, distribution of cocaine (1 count).
- Dwatney Noid, distribution of cocaine (2 counts), use of a telephone to facilitate a drug trafficking crime (2 counts).
- Dwight McLittle, distribution of cocaine (6 counts).
- Shanieka Tatum, use of a telephone to facilitate a drug trafficking crime (3 counts).
- Lamont Williams, use of a telephone to facilitate a drug trafficking crime (2 counts).
- Gerard Trice, use of a telephone to facilitate a drug trafficking crime (2 counts).
- Tarvars Honorable, distribution of cocaine base (1 count), use of a telephone to facilitate a drug trafficking crime (1 count).
STATUTORY SENTENCES
Conspiracy to possess with intent to distribute more than five kilograms of cocaine is punishable by not less than 10 years, not more than life, incarceration in the Bureau of Prisons with a possible fine of up to $10,000,000, and not less than 5 years supervised release.
Possession with intent to distribute less than 500 grams of cocaine or less than 28 grams of cocaine base is punishable by not more than 20 years incarceration in the Bureau of Prisons with a possible fine of up to $1,000,000, and not less than 3 years supervised release.
Use of a communication facility to facilitate a drug trafficking crime are not more than 4 years incarceration in the Bureau of Prisons with a possible fine of up to $250,000, and not more than 1 year supervised release.
(Rangel Indictment)
(Tallenetal Indictment)
12 Los Angeles-Area Residents Accused of Attempting to Bilk Medicare Out of $22 Million Arrested as Part of Nationwide CrackdownRead the Press Release
LOS ANGELES – Twelve Los Angeles-area residents – including California’s second-largest biller for chiropractic services, a physician’s assistant, and owners of durable medical equipment (DME) and ambulance companies – were taken into custody today in relation to seven criminal cases that allege they cumulatively submitted more than $22 million in false billings to Medicare.
The charges filed in Los Angeles are part of a nationwide “takedown” by Medicare Fraud Strike Force operations in eight cities that led to charges against 89 individuals for their alleged participation in schemes to collectively submit about $223 million in fraudulent claims to Medicare (for national press release and all related charging documents, see: http://www.justice.gov/opa/mfsf-pc-docs-2013.html).
The dozen defendants taken into custody are among 13 people charged in Los Angeles in cases that allege health care fraud. The 12 either were arrested this morning or self-surrendered to authorities after learning that they had been charged in federal court. All of those defendants are scheduled to be arraigned this afternoon. A thirteenth defendant is a fugitive.
Dr. Houshang Pavehzadeh, of the Sylmar Physician Medical Group, allegedly billed Medicare more than $1.7 million for chiropractic treatments he never performed. During the scheme, which ran from 2005 through 2012, Dr. Pavehzadeh, 40, of Agoura Hills, became the second-largest Medicare biller in California for chiropractic services – even though he was not in the United States when some of the alleged services were performed. In addition to being charged with health care fraud, Pavehzadeh is charged with aggravated identity theft related to Medicare beneficiaries whose information he used to bill Medicare as a part of the scheme. When investigators tried to conduct an audit of Pavehzadeh’s claims, he falsely reported to the Los Angeles Police Department that he had been carjacked and that patient files requested by the auditors had been stolen from his car. Pavehzadeh surrendered this morning, and he is scheduled to be arraigned with other Los Angeles-area defendants this afternoon in the Roybal Federal Building.
Nine defendants affiliated with DME companies were also charged in five separate indictments.
Olufunke Fadojutimi, 41, of Carson, a registered nurse; Ayodeji Temitayo Fatunmbi, 41, formerly of Carson, and now believed to be residing in Nigeria; and Maritza Velazquez, 40, of Las Vegas, were charged with health care fraud. The scheme allegedly revolved around Lutemi Medical Supplies, a DME company Fadojutimi owned and where Fatunmbi and Velazquez worked. According to the indictment in this case, Lutemi billed Medicare more than $8.3 million in claims, primarily for medically unnecessary power wheelchairs. Fadojutimi and Fatunmbi allegedly laundered Medicare funds in order to purchase fraudulent prescriptions for those power wheelchairs and pay illegal kickbacks to recruit Medicare beneficiaries. Fadojutimi was arrested this morning in Los Angeles, while Velazquez was arrested in Las Vegas. Fatunmbi is currently a fugitive being sought by federal authorities.
Susanna Artsruni, 45, of North Hollywood, and Erasmus Kotey, 76, of Montebello, a licensed physician’s assistant, allegedly worked together to commit health care fraud out of a medical clinic on Vermont Avenue where they both worked. Kotey allegedly prescribed medically unnecessary DME, including power wheelchairs, for Medicare beneficiaries. Many of those power wheelchair prescriptions were then used by Artsruni’s DME company, Midvalley Medical Supply, to support fraudulent claims to Medicare. In only four months, the clinic and Midvalley billed Medicare more than $525,000 for these fraudulent claims. Artsruni has previously been convicted of health care fraud and was on pretrial supervision at the time she allegedly laundered some of the proceeds of this fraud. Artsruni was arrested this morning, while Kotey self-surrendered.
Three other DME cases were also charged, alleging fraudulent Medicare billing for medically unnecessary power wheelchairs that were sometimes never even delivered. In one case, Akinola Afolabi, 53, of Long Beach, the owner of Emmanuel Medical Supply, allegedly submitted more than $2.6 million in in false and fraudulent billing to Medicare. In another case, Queen Anieze-Smith, 52, of Encino, and Abdul King-Garba, 47, of Westwood, the owners and operators of ITC Medical Supply, allegedly submitted more than $1.8 million in false and fraudulent billing to Medicare. In the third case, Clement Etim Aghedo, 53, of Fontana, the owner of Ace Medical Supply Company, allegedly submitted more than $1.8 in false and fraudulent claims to Medicare. Afolabi, Anieze-Smith, and King-Garba were all arrested this morning, while Aghedo self-surrendered.
In the seventh case brought as part of today’s takedown, three defendants affiliated with Gardena-based ProMed Medical Transportation, an ambulance company, were charged with submitting more than $5.9 million in false claims to Medicare between 2008 and 2011. ProMed’s owner, Yaroslav Proshak, 45, of Valley Village; general manager Sharetta Wallace, 35, of Inglewood; and office manager and biller Sergey Mumjian, 40, of West Hollywood, submitted claims for medically unnecessary transportation services and then created fake documentation purporting to support those claims. Proshak, Wallace, and Mumjian were arrested this morning.
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and the Department of Health and Human Services to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
The Los Angeles cases announced today are being investigated by a Medicare Fraud Strike Force team, which is comprised of agents and investigators with the Federal Bureau of Investigation; the Department of Health and Human Services, Office of Inspector General; IRS - Criminal Investigation; and Medicaid Fraud Control Units, including the California Department of Justice. The cases are being prosecuted by attorneys from the United States Attorney’s Office and the Fraud Section of the Justice Department’s Criminal Division.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
The charge of health care fraud carries a statutory maximum penalty of 10 years in federal prison. Money laundering carries a potential penalty of 20 years in prison. Aggravated identity theft carries a mandatory two-year prison term.
Release No. 13-069a
13 May 2013
Wichita Man Sentenced to 10 Years for Distributing Child PornRead the Press Release
WICHITA, KAN. – A Wichita man was sentenced to more than 10 years in federal prison for distributing child pornography, U.S. Attorney Barry Grissom said today.
Deric D. Davin, 34, Wichita, Kan., was sentenced to 121 months in federal prison. He pleaded guilty to one count of distributing child pornography. In his plea, he admitted he used a peer-to-peer file sharing network on the Internet to receive and distribute child pornography. In February 2012, an FBI agent in Tulsa, Okla., downloaded child pornography from Davin’s computer in Wichita.
Grissom commended the FBI and Assistant U.S. Attorney Jason Hart for their work on case.