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13 May 2013
Former Employee Pleads Guilty to Stealing $1,800 from DEARead the Press Release
PITTSBURGH, Pa. - A former employee of the Drug Enforcement Administration pleaded guilty in federal court to a charge of theft of government money, United States Attorney David J. Hickton announced today.
Holly A. Cook, 44, of Monongahela, Pa., pleaded guilty to one felony count before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that in June 2012, Cook embezzled $1,800.00 in cash from the United States Drug Enforcement Administration, knowing that she was not entitled to this money.
Judge Ambrose scheduled sentencing for Sept. 10, 2013 at 10 a.m. The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The court released Cook on a $10,000 unsecured bond pending sentencing.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The United States Department of Justice, Office of the Inspector General, conducted the investigation leading to the Information in this case.
Former Bend Area Bank Loan Officer Pleads Guilty to $2.6 Million FraudRead the Press Release
Case Relates to the Collapse of Desert Sun Development in Bend, OregonEUGENE, Ore. – Today, Jeffrey Sprague, 50, of Bend, Oregon, appeared before Chief U.S. District Court Judge Ann Aiken and pleaded guilty to conspiracy to make false statements to a financial institution, to commit wire fraud, and to commit bank fraud. The charge arose out of the collapse of Desert Sun Development (DSD), a development and construction company in Bend, Oregon. As part of his guilty plea, Sprague admitted that he caused his former employer, West Coast Bank, to lose more than $2.6 million on fraudulent loans.
According to court documents, Sprague, a loan officer at West Coast Bank at the time, falsified loan applications for DSD employees and others by fraudulently inflating their monthly income and falsely claiming that these homes were going to be the employees’ primary residences when he knew these homes were part of DSD’s flipping scheme. Sprague also knew that these loan files contained forged or scanned signatures and other material misrepresentations and omissions. West Coast Bank approved and funded the loans for DSD employees and others based on the loan applications Sprague falsified as well as the other documents that Sprague submitted to the bank that he knew were false.
Out of the DSD investigation, 13 individuals were charged in five indictments, and, with Sprague’s guilty plea, all 13 defendants have pled guilty. Sprague is scheduled to appear before Chief Judge Aiken for sentencing on September 3, 2013. Sentencing hearings for the co-defendants are scheduled for July 10 and July 31, 2013, before Chief Judge Aiken.
Conspiracy carries a maximum sentence of five years in prison and a $250,000 fine.
This case was investigated by the FBI, IRS-Criminal Investigations, and the Oregon Division of Finance and Corporate Securities. Assistant U.S. Attorney Scott E. Bradford is handling the prosecution of the case.
Florida Resident Sentenced to 10 Years on Drug Conspiracy ChargeRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
WHEELING, WEST VIRGINIA - A 35-year old Deland, Florida, resident was sentenced on May 13, 2013, in United States District Court in Wheeling by Judge Frederick P. Stamp, Jr.
United States Attorney William J. Ihlenfeld, II, announced that: JAMIE L. JOYNER was sentenced to 120 months imprisonment to be followed by three years of supervised release. JOYNER entered a plea of guilty on January 3, 2013, to “Conspiracy to Distribute Schedule II Controlled Substances” from March of 2012 to September 12, 2012, for his role in Florida to West Virginia pill ring. In a joint investigation, involving the Marshall County Sheriff’s Department, the Moundsville Police Department, the DEA, United State Postal Service, and the West Virginia State Police, beginning in the spring of 2012, agents received information that an apartment in Marshall County was being used to distribute oxycodone pills being brought to West Virginia from Florida, typically via rental vehicles. The Court also ordered the forfeiture of $2,096 in drug proceeds.
This case was prosecuted by Assistant United States Attorney John C. Parr.
Fitchburg Man Sentenced for Possessing Child PornographyRead the Press Release
BOSTON – A Fitchburg man was sentenced today in U.S. District Court in Worcester for possessing child pornography.
Roy Parry, 49, was sentenced by U.S. District Judge Timothy S. Hillman to 10 years in prison, followed by 10 years of supervised release. In January 2013, Parry pleaded guilty to possession of child pornography.
In February 2009, Parry placed images containing child pornography in a peer-to-peer file sharing program and that led federal authorities to obtain a search warrant for his home and computer. The execution of that search warrant in May 2009 resulted in the seizure of thousands of images and hundreds of videos containing child pornography. Additionally, in October 2001, Parry had been previously convicted of possession of child pornography.
United States Attorney Carmen M. Ortiz and Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Mark Grady and Ortiz’s Worcester Branch Office.
Federal Court in Georgia Shuts Down Tax Return PreparerRead the Press Release
A federal court permanently barred Larry J. Heath, a Cartersville, Ga., area tax preparer who operated Heath’s Income Tax, Heath & Hames Income Tax and Heath’s Income Tax II, from preparing tax returns for others, the Justice Department announced today. The civil injunction order, to which Heath agreed without admitting the allegations against him, was signed by Judge Harold L. Murphy of the U.S. District Court for the Northern District of Georgia. The government’s complaint in the injunction suit was brought against both Larry Heath and his brother, Andrew R. Heath. The case against Andrew Heath remains pending.
The government complaint alleged that Larry Heath and his businesses repeatedly prepared federal tax returns that unlawfully understated customers’ federal tax liabilities. The suit alleged that Larry Heath concocted bogus losses, expenses, education credits, business expenses and charitable contributions, which he falsely reported on his customers’ federal-income-tax returns.
The Internal Revenue Service (IRS) previously suspended Larry Heath’s IRS-issued electronic filing identification number (EFIN) because of the large number of erroneous returns he prepared, according to the complaint. Larry Heath then supposedly “sold” his business to two different women and used their EFINs to continue to file tax returns, the complaint alleged. The injunction applies to the businesses that were purportedly sold, Heath & Hames Income Tax and Heath’s Income Tax II.
Claiming bogus tax refunds is one of the IRS’s Dirty Dozen Tax Scams .
In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of tax fraud promoters and unscrupulous tax preparers. Information about these cases is available on the Justice Department website .
Related Materials:
Heath Injunction Order
Fargo Man Sentenced for Harboring Illegal AliensRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on May 13, 2013, Garrett Glenn Setterholm of Fargo, N.D., was sentenced before U.S District Judge Ralph R. Erickson on a charge of harboring illegal aliens.
Setterholm, 29, pleaded guilty on Jan. 25, 2013, to harboring six or more workers who were not in the United States legally. Setterholm, who operated Setty Construction, a roofing company out of Fargo, N.D, located and hired the illegal workers online through Craig’s List. As part of their employment, Setterholm provided the illegally employed workers with apartments and transportation to and from the work sites. The incidents occurred between June and September of 2011 in the District of North Dakota and
Minnesota.Judge Erickson sentenced Setterholm to three months’ imprisonment to be followed by six months of home confinement. Setterholm was also ordered to pay an $80,000 forfeiture.
The case was investigated by Homeland Security Investigations.
Assistant U.S. Attorney Nick Chase prosecuted the case.
Elkins Man Pleads Guilty to Wire FraudRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
Ten others appear for Pleas and Sentencings
CLARKSBURG, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II announced that the following individuals recently appeared in Federal Court in Clarksburg.
RICHARD MAURICE HADDIX, age 33, of Elkins, West Virginia, entered a plea of guilty to “Wire Fraud.” HADDIX was a broker for a transportation management firm and created 230 fictitious cash advances and caused $102,260 to be deposited into his personal bank account. As part of his plea agreement, HADDIX will make restitution in the amount of $102,260 to the victims of his crime. HADDIX, who is free on bond pending sentencing, faces up to 20 years imprisonment and a $250,000 fine. This case was prosecuted by Assistant United States Attorney Stephen D. Warner and investigated by the Elkins Police Department.
BETH ALLEVATO a/k/a “ROXIE”, age 40, of Clarksburg, was sentenced to 33 months imprisonment to be followed by six years of supervised release. ALLEVATO entered a plea of guilty on November 28, 2012, to “Distribution of Cocaine” on December 2, 2011, in Clarksburg. ALLEVATO was remanded to the custody of the United States Marshal pending designation to a Federal institution. The case was prosecuted by Criminal Chief Shawn A. Morgan and investigated by the Harrison County Drug Task Force consisting of officers from the Clarksburg Police Department, the Harrison County Sheriff’s Department and the Bridgeport Police Department.
ANTHONY CRIPPIN, age 29, of Morgantown, entered a plea of guilty to “Distribution of Heroin within 1,000 Feet of WVU.” CRIPPIN, who is in custody pending sentencing, faces a term of at least 1 and up to 40 years imprisonment and a $2,000,000 fine. This case was prosecuted by Assistant United States Attorney Andrew R. Cogar and investigated by the Mon Valley Drug Task Force and the West Virginia State Police. The task force consists of officers from Morgantown Police Department, the Monongalia County Sheriff’s Department, and the Drug Enforcement Administration.
JENNIFER KELLEY, age 28, of Morgantown, West Virginia, entered a plea of guilty to “Distribution of Cocaine Hydrochloride.” KELLEY, who is free on bond pending sentencing, faces up to 20 years imprisonment and a $1,000,000 fine. This case was prosecuted by Assistant United States Attorney Zelda E. Wesley and was investigated by the West Virginia State Police-Bureau of Criminal Investigations.
WILLIAM TRENT RICHARDSON, age 21, of French Creek, West Virginia, entered a plea of guilty to Maintaining a Drug-Involved Premise” from February 2 to September 13, 2012, to manufacture, store, distribute and use methamphetamine. RICHARDSON, who is free on bond pending sentencing, faces up to 20 years imprisonment and a $500,000 fine. This case was prosecuted by Assistant United States Attorney Stephen D. Warner and investigated by the West Virginia State Police.
JOHN THOMAS CHINNICI, age 27; VICTOR AVILES, age 32 and ALEX TEJADA, age 31, former inmates at FCI Gilmer entered pleas of guilty to “Assault.” On June 30, 2011, CHINNICI, AVILES and TEJADA assaulted another inmate by punching, kicking and stabbing him eight times with prison-made knives. CHINNICI, AVILES and TEJADA were each sentenced to 12 months imprisonment and remanded to the custody of the United States Marshal. This case was prosecuted by Assistant United States Attorney Brandon S. Flower and was investigated by the Special Investigative Services Staff at FCI Gilmer.
BENJAMIN RAYMOND, age 36, and DRYDEN CRAVENS, age 45, inmates at USP Hazleton entered pleas of guilty to “Assault.” On November 10, 2012, RAYMOND and CRAVENS assaulted another inmate by stabbing them 6 times with prison-made knives. RAYMOND was sentenced to 24 months imprisonment to run consecutive to his current sentence of 300 months. CRAVENS was sentenced to 18 months imprisonment to run concurrent with his current sentence of 77 months. This case was prosecuted by Assistant United States Attorney Brandon S. Flower and was investigated by the Special Investigative Services Staff at USP Hazelton.
ZSA ZSA DEE FIELDS, age 45, of Detroit, Michigan, entered a plea of guilty to “Introduction of a Prohibited Object - Marijuana.” On December 17, 2011, FIELDS provided marijuana to an inmate at FCI Gilmer. FIELDS was sentenced to 18 months probation. The case was prosecuted by Assistant United States Attorney Brandon S. Flower and investigated by the Special Investigative Services at FCI Gilmer.
Eastern Shore Drug Distributor Pleads GuiltyRead the Press Release
Baltimore, Maryland - Austin Roberts, III, age 37, formerly of Elkridge, Maryland, pleaded guilty on May 10, 2013 to conspiring to distribute heroin, cocaine and cocaine base (crack cocaine). Roberts remains detained pending sentencing.
The guilty plea 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 2007 until his arrest in December 2012, Roberts conspired to sell heroin and cocaine with Andrew Jackson, Maurice Hardy and others. Roberts distributed multiple kilograms of cocaine to Hardy on several occasions. For example, after a telephone call in which Hardy indicated that Roberts would be supplying him with seven kilograms of cocaine for $31,500 per kilogram, on May 12, 2011, 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.
During the course of the conspiracy, Roberts distributed or directed the distribution of well over 50 kilograms of cocaine, a kilogram of heroin and a quantity of cocaine base.
For well over a year following his indictment on state and federal charges, Roberts eluded arrest. On July 19, 2011, an officer patrolling the New Jersey Turnpike stopped Roberts’ vehicle. Roberts provided a California license under the name John Nash. When the officer learned that the name was an alias for Roberts who was wanted, he requested back up. Roberts ran away as the officers continued to investigate his identity. In August 2012, a California Highway Patrol officer stopped Roberts’ vehicle and Roberts again escaped on foot. Officers seized $29,000 from a hidden compartment in the vehicle. Roberts was arrested in San Diego, California on December 4, 2012.
Roberts and the government have agreed that if the Court accepts the plea agreement Roberts will be sentenced to 19 years in prison. U.S. District Judge Ellen L. Hollander scheduled sentencing for August 9, 2013, at 2:00 p.m.
Andrew Jackson, age 39, of Baltimore, Maryland, Maurice Kenneth Hardy, age 37, of Nanticoke, Maryland, and Tereek Nutter, age 29, 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, and scheduled Hardy’s sentencing for May 14, 2013.
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.
Drug Kingpin Kaboni Savage and Sister Kidada Convicted of Arson MurdersRead the Press Release
PHILADELPHIA - A federal jury today found drug kingpin Kaboni Savage, 38, and his sister Kidada, 30, guilty of orchestrating the murders of a federal witness’ family and of conspiring to participate in a long-term, large-scale violent drug trafficking enterprise (RICO conspiracy). The Savages’ co-defendants, Robert Merritt, 32, and Steven Northington, 41, were also convicted of the Racketeering (RICO) conspiracy. Savage was convicted of 12 counts of murder in-aid-of racketeering. Kidada Savage was convicted of six counts of murder in-aid-of racketeering, all related to the firebombing murders of the Coleman family home on October 9, 2004. Kaboni and Kidada Savage were also convicted of conspiracy to commit murder in aid of racketeering, retaliating against a witness by murder, and of using fire to commit a felony (the Coleman murders).
Steven Northington was convicted of two counts of murder in-aid-of racketeering. Both he and Kaboni Savage are eligible for the death penalty. The penalty phase is scheduled to begin May 20, 2013.
Savage’s drug enterprise operated primarily in the North Philadelphia area from at least late 1997 to 2010. After Savage was indicted on drug charges in 2004, he ordered the murders of the family of government witness Eugene Coleman. Lamont Lewis, who has pleaded guilty, firebombed the Coleman family home on Savage’s orders which Kidada Savage relayed to Lewis.In addition to the murders of the six people inside the Coleman home, Savage was convicted of:
▸ the March 19, 1998, murder of Kenneth Lassiter, age 44, of Lansdale, PA, near the corner of 8th and Butler Streets in Philadelphia;
▸ the September 6, 2000 murder of Mansur “Shafiq”Abdullah, age 22, of 11th Street, Philadelphia. Abdullah was shot and his burned body was later recovered in the 4200 block of North Park Avenue, in Philadelphia;
▸ the September 13, 2001 murder of Carlton “Mohammed” Brown, age 27, of Darien Street, Philadelphia;
▸ the February 26, 2003 murder of Barry Parker, age 32, of Susquehanna Avenue, Philadelphia, by Kaboni Savage and Steven Northington, in the 3900 block of North Franklin Street, in Philadelphia;
▸ the March 14, 2003 murder of Tyrone Toliver, age 26, of Cherry Hill, NJ in the 3500 block of North Palmetto Street in Philadelphia; and
▸ the March 1, 2004 murder of Tybius Flowers, age 32, of K Street, by Kaboni Savage and Steven Northington, in the 3700 block of N. 8th Street in Philadelphia;
The RICO conspiracy count carries a maximum sentence of life in prison. Kidada Savage faces a mandatory life term for the murder charges.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, the Philadelphia Police Department, and the Maple Shade, New Jersey Police Department. The United States Bureau of Prisons, the United States Marshals Service, and HIDTA (High Intensity Drug Trafficking Area) also assisted in the investigation. The case is being prosecuted by Assistant United States Attorneys David E. Troyer and John M. Gallagher and Trial Attorney Steve Mellin of the Criminal Division’s Capital Case Unit at the U.S. Department of Justice.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Drug Dealer Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. - David McArthur Trotter, of Grand Bay, Alabama, was sentenced in federal court today as a result of his guilty plea to a federal indictment in August of 2011. Trotter pled guilty to two counts in the indictment charging conspiracy to possess with intent to distribute cocaine, and convicted felon in possession of a firearm. Senior United States District Court Judge Charles R. Butler, Jr., imposed the sentence this morning, ordering that Trotter serve 10 years in federal prison on each count, concurrently. Judge Butler ordered that Trotter serve 10 years on federal supervision following his release from imprisonment at the completion of the 10-year prison term. In addition, Trotter was ordered to pay $200 in special mandatory assessments, and a forfeiture judgement was entered as to a diamond-encrusted watch seized from Trotter at the time of his arrest.
The investigation was conducted by the Mobile County Sheriff’s Office and the Department of Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Gloria A. Bedwell.
Detroit-Area Clinic Owner Sentenced to 40 Months in Prison for Role in $19 Million Health Care Fraud SchemeRead the Press Release
A Detroit-area adult day care center owner was sentenced today to serve 40 months in prison for billing for unnecessary psychotherapy services, or services that were not provided, as part of a health care fraud conspiracy which led to more than $19 million in fraudulent Medicare billings.
The sentence was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Robert D. Foley III of the FBI’s Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office.
Checarol Robinson, 41, was sentenced by U.S. District Judge Nancy G. Edmunds in the Eastern District of Michigan. In addition to her prison term, Robinson was sentenced to serve two years of supervised release and was ordered to pay $599,438 in restitution, jointly and severally with her co-defendant, Louisa Thompson, who awaits sentencing following a guilty plea for her role in the scheme.
Robinson pleaded guilty on Aug. 2, 2012, to an indictment charging her with one count of conspiracy to commit health care fraud and three counts of health care fraud.According to Robinson’s admissions during her guilty plea proceeding, Robinson owned group homes where Medicare beneficiaries resided. In return for payments, Robinson provided these Medicare beneficiaries’ information to a fraudulent psychotherapy company – Caldwell Thompson Manor Inc. – owned by co-conspirator Thompson. That information was then used to bill Medicare for psychotherapy services that were not provided or were not medically necessary.
Robinson later owned and operated P&C Adult Day Center, which was incorporated in May 2010 and purported to provide psychotherapy services. Robinson admitted she falsely billed Medicare for individual and group therapy services that were not provided by P&C or were not medically necessary, using the Medicare beneficiaries from her group homes. Thompson, a licensed social worker and Robinson’s co-conspirator from the scheme at Caldwell Thompson, signed patient charts for psychotherapy services purportedly performed at P&C that were medically unnecessary or never performed.
According to court documents, a total of more than $19 million in false claims were submitted by the co-conspirators throughout the course of the conspiracy. Evidence presented at today’s sentencing demonstrated that Robinson was responsible for causing the submission of more than $2 million in fraudulent billings.
This case was prosecuted by Assistant Chiefs Gejaa T. Gobena and Catherine K. Dick of the Criminal Division’s Fraud Section, and Assistant U.S. Attorney for the Eastern District of Michigan Philip A. Ross. It was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.
Since their inception in March 2007, strike force operations in nine locations have charged more than 1,480 defendants who collectively have falsely billed the Medicare program for more than $4.8 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.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Detroit Man Who Sold Thousands of Oxycodone Pills Sentenced to Almost 16 Years in Federal PrisonRead the Press Release
Robert Smith sold more than 11,000 oxycodone tablets in and around Huntington
HUNTINGTON, W.Va. – A Detroit man who illegally sold thousands of powerful prescription painkillers in and around the Huntington area was sentenced on May 13 to 15 years and eight months in federal prison, announced United States Attorney Booth Goodwin. Robert Louis Smith, 40, of Detroit, previously pleaded guilty in February to distribution of oxycodone.
“Every time we put a law-breaking pill dealer out of business, it’s a big step toward getting this problem under control.” U.S. Attorney Booth Goodwin said, “I hope this conviction sends a clear message: There are consequences when you peddle poison in our communities."
On March 12, 2010, Smith met a confidential informant at a McDonald’s restaurant parking lot located on Hal Greer Boulevard in Huntington to complete a prearranged pill transaction. After arriving at the location, Smith entered the police informant’s vehicle and distributed 229 80-milligram oxycodone pills and 257 oxycodone 40-milligram oxycodone pills in exchange for cash that was contained in a white paper bag. Afterward, Smith returned to his vehicle with the bag containing the cash and drove out of the McDonald’s parking lot. A short time later, Smith’s vehicle was stopped by HPD officers. Police arrested Smith and recovered the bag of cash that he received from the pill transaction.
At sentencing, the Court found that Smith had distributed a total of 11,820 80-milligram oxycodone tablets. The Court also found that the oxycodone tablets were brought to the Huntington area and sold by the defendant between June 2009 and March 2010.
The Huntington Police Department and the Drug Enforcement Administration conducted the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution. The sentence was imposed by Chief United States District Judge Robert C. Chambers.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers in communities across the Southern District.
Detroit Area Home Health Agency Owner <br /> Sentenced to 60 Months for Role in <br /> $13 Million Health Care Fraud SchemeRead the Press Release
A Detroit-area home health care agency owner was sentenced today to 60 months in prison for causing the submission of over $1 million in false and fraudulent billing to Medicare as part of a $13.8 million health care fraud conspiracy.
The sentence was announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Robert D. Foley III of the FBI’s Detroit Field Office; and Special Agent in Charge Lamont Pugh, III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office.
According to plea documents, Rehan Khan was an owner of Moonlite Home Care Inc. As the co-owner of Moonlite, Khan paid and directed the payment of sums to doctors to refer patients for home health care services to Moonlite that were not medically necessary and/or never rendered. Khan also worked as a physical therapy assistant for several home health agencies in the Detroit area, known as Physicians Choice Home Health Care LLC and First Care Home Health Care LLC. Khan paid and directed the payment of kickbacks to beneficiaries for Physicians Choice, First Care and Moonlite. The Medicare beneficiaries sometimes pre-signed forms and visit sheets that were later falsified to indicate that they had received home health services that they had never received. Other times, the Medicare beneficiaries’ signatures were forged on forms and visit sheets to indicate that they received home health services that they had never received.
Khan paid and directed the payment of various medical professionals, including nurses, physical therapists, and physical therapy assistants, to create fictitious patient files to document home health services purportedly provided by Moonlite that were never rendered. Khan also signed fictitious patient files purporting to have given physical therapy services at all three home health care agencies that were in fact never rendered.
From about January 2011 through about September 2011, Khan submitted or caused the submission of fraudulent claims by Moonlite, for which Medicare paid approximately $891,473. From about January 2009 through about September 2011, Medicare paid approximately $866,512 to Physicians Choice and First Care for fraudulent physical therapy claims based on falsified files and notes signed by Khan. In total, Khan was responsible for approximately $1,757,985 in false and fraudulent claims to Medicare.
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 Eastern District of Michigan. The case was prosecuted by Assistant Chief Catherine K. Dick of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Philip A. Ross of the Eastern District of Michigan.
Since their inception in March 2007, strike force operations in nine locations have charged more than 1,480 defendants who collectively have falsely billed the Medicare program for more than $4.8 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.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Denver Attorney Indicted Along with Clients for Defrauding the IRSRead the Press Release
DENVER – Eva Melissa Sugar, age 59, of Denver, Colorado, Jerry Lynn Roberts, age 45, of Polk City, Florida, and Gregory Nathan Laurence, age 46, of Germantown, Tennessee, were indicted by a federal grand jury in Denver on May 8, 2013 for various charges related to obstructing and defrauding the Internal Revenue Service, the United States Attorney’s Office and IRS Criminal Investigation announced. The indictment was sealed pending the defendants’ first appearance in U.S. District Court. Sugar, a practicing attorney, appeared before a Magistrate Judge in U.S. District Court in Denver last Friday, May 10, 2013, where she was advised of her rights and the charges. Laurence was issued a summons to appear in U.S. District Court in Denver on May 29, 2013. Roberts is at large.
According to the indictment, Sugar and her co-conspirators both known and unknown to the Grand Jury conspired to defraud the United States for the purpose of impeding, impairing, obstructing, and defeating the lawful Government functions of the Internal Revenue Service. Sugar was a resident of Aurora, Colorado, and was self-employed as an attorney specializing in tax and other legal matters in Denver, Colorado. Sugar worked with Financial Fortress Associates (FFA) clients. FFA was an organization that promoted and advised its clients on schemes to avoid the payment of income and other federal taxes.
FFA promoted Pure Trust Organizations (“PTO”) and “private banking” using so-called Unincorporated Business Organizations (“UBOs”) and Banking Unincorporated Business Organizations (“BUBOs”) as vehicles to conceal business and personal income and asset ownership to avoid paying income, employment, and other federal taxes to the IRS. FFA held seminars and workshops around the country to promote its schemes, which individuals paid to attend. Sugar occasionally attended and spoke at FFA seminars. At those seminars, FFA’s promoters explained the schemes and provided referrals to their co-conspirators, including Sugar, who charged fees to execute the schemes for FFA clients. Generally, the FFA client either caused the understating of business gross receipts or overstated expenses for the FFA client’s legitimate business, thereby decreasing the business’s income.
Sugar provided various services to her clients, which as described, included establishing UBOs, applying for EINs for the UBOs, and opening associated BUBO bank accounts that her clients used to conceal assets and income and to avoid paying taxes to the IRS. Sugar generally was the trustee for the UBOs and had signatory authority for the bank accounts. To prevent the client’s name being associated with the BUBO account, Sugar and the client would identify a third party for the fictitious trust entity or account. That person would be given signatory authority but exercised no authority or control the fictitious trust entity and Sugar and her clients had signature stamps created for these individuals.
Roberts was a resident of Florida who worked for Roberts Enterprises, a family-owned fundraising business, and he was a client of FFA and Sugar. Beginning in November 1999 and continuing through April 2008, Roberts and Sugar, aiding and abetting each other, did corruptly endeavor to obstruct and impede the due administration of the Internal Revenue laws by setting up and using BUBO accounts as described in the above paragraphs. Furthermore, in 2008 Roberts attempted to influence, obstruct, and impede the due administration of justice, by making a variety of threats to Internal Revenue Service criminal investigators after the service of Grand Jury subpoenas relating to UBOs he controlled and other organizations.
Laurence was a resident of Tennessee and was a doctor who operated two businesses, Germantown Aesthetics, LP (“GA”) and Germantown Family Care & Obstetrics, LP (“GFCO”). Laurence was also a client of FFA and Sugar. Beginning in January 2002 and continuing through October 2008, Laurence and Sugar, aiding and abetting each other, did corruptly endeavor to obstruct and impede the due administration of the Internal Revenue laws by setting up and using BUBO accounts as described in the above paragraphs. In March 2008 continuing through January 2009, Laurence attempted to influence, obstruct, and impede the due administration of justice, in that, after contact by Internal Revenue Service criminal investigators and the service of Grand Jury subpoenas relating to GA and GFCO.
“As citizens, we all have an obligation to pay our taxes,” said U.S. Attorney John Walsh. “Hiding income on purpose to avoid paying taxes leads to criminal prosecutions and all the consequences that brings.”
“For those thinking about promoting or participating in fraudulent tax schemes should think twice, there is no secret formula that can eliminate a person's tax obligations.” said Stephen Boyd, Special Agent in Charge for IRS Criminal Investigation, Denver Field Office. “We owe it to every American taxpayer to identify and prosecute both those who evade their taxes and those who promote and assist them in evading their tax obligations through fraudulent tax schemes.”
Sugar was charged with one count of conspiracy to defraud the United States, one count of failing to file a tax return and two counts of obstructing of IRS laws. Roberts and Laurence were each charged one count of obstructing of IRS laws and one count of obstruction of justice. Conspiracy to defraud the United States carries a penalty of not more than 5 years in federal prison, and a fine of up to $250,000. Obstructing of IRS laws carries a penalty of not more than 3 years in federal prison, and a fine of up to $250,000. Failing to file a tax return carries a penalty of not more than 1 year in federal prison, and a fine of up to $100,000. Obstruction of justice carries a penalty of not more than 10 years in federal prison, and a fine of up to $250,000.
This case was investigated by agents with IRS Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorneys Anna Edgar and Matthew Kirsch.
The charges contained in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
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Dennison Man Sentenced to Nearly 22 Years in Prison for Child Pornography CrimesRead the Press Release
A Dennison man was sentenced to nearly 22 years in prison for crimes related to the production and distribution of child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Vernon L. Kriner, Jr., 43, pleaded guilty earlier this year to child exploitation, possession of child pornography and two counts of receipt and distribution of visual depictions of children engaged in sexually explicit conduct.
U.S. District Judge Patricia A. Gaughan sentenced Kriner to 262 months in prison.
This case was prosecuted by Assistant United States Attorney Michael A. Sullivan following an investigation by the Federal Bureau of Investigation.
Denham Springs Man Sentenced to 30 Months in Prison for Attempted Possession of Child PornRead the Press Release
LAFAYETTE, La.: United States Attorney Stephanie A. Finley announced today that Brad Maruschak, 37, of Denham Springs, La., was sentenced to 30 months in prison by U.S. District Court Judge Richard T. Haik for attempted possession of child pornography. Maruschak is also required to complete five years of supervised release and register as a sex offender. Maruschak pleaded guilty on Dec. 17, 2012.
According to the evidence presented at the guilty plea, Maruschak contacted an individual who he thought was a 14-year-old girl in an online chat room in April 2010. The person chatting with Maruschak was in fact an undercover Louisiana State Police officer in Lafayette posing as a 14-year-old girl. From April to August, Maruschak took part in a series of sexually graphic communications and asked the 14-year-old girl for pictures.
“Unfortunately, the internet should not be the playground for predators. Child predators troll the internet looking for children so that they can lure them into abusive situations,” Finley said. “In this case, the defendant was apprehended before any children were abused. Hopefully, this case causes child predators to think twice before trying to connect to youths online. We will continue to prosecute these cases. The safety of the children in this community is a priority for the Western District.”The Louisiana State Police investigated the case, and Assistant U.S. Attorney Myers P. Namie prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice launched nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), 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 www.projectsafechildhood.gov.
The U.S. Attorney’s Office and the U.S. Department of Homeland Security/Homeland Security Investigations/Immigration & Customs Enforcement (ICE) encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) DHS-2ICE. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp.
Convicted Terrorist Sentenced to Life in Prison for Plotting to Kill Witnesses in His Terrorism TrialRead the Press Release
At a hearing today in federal court in the Eastern District of North Carolina, Hysen Sherifi, 29, of Raleigh, N.C., was sentenced by Senior U.S. District Judge W. Earl Britt to life in prison. Sherifi’s co-defendants, Shkumbin Sherifi, 23, and Nevine Aly Elshiekh, 48, were also sentenced to 36 months and 42 months in prison, respectively, both followed by three years of supervised release.
The sentences were announced by John Carlin, Acting Assistant Attorney General for National Security; Thomas G. Walter, U.S. Attorney for the Eastern District of North Carolina; and John Strong, Special Agent in Charge of the FBI Charlotte Division.
“Today, a convicted terrorist who plotted from his prison cell to behead federal agents and witnesses received the justice he deserved. As this sentence demonstrates, those who attempt to thwart the judicial process through violence will be prosecuted to the fullest extent of the law. I thank all those who worked to ensure that Hysen Sherifi’s original terrorist plans against U.S. military personnel and others were derailed, and that his subsequent murder-for-hire plot against those who testified against him was thwarted,” said John Carlin, Acting Assistant Attorney General for National Security.
U.S. Attorney Walker stated, “This case serves as an unfortunate reminder that we must remain ever vigilant in our efforts to detect violent extremists who seek to harm our people and property.”
“Hysen Sherifi, while in prison on a terrorism conviction, hatched a sinister murder for hire plot against the witnesses and FBI agents who helped convict him. The sentences handed down today send a clear message the FBI and our law enforcement partners will not tolerate attempts to thwart the judicial process,” said FBI Special Agent in Charge Strong.
On Nov. 8, 2012, Hysen Sherifi (Sherifi) was found guilty by a jury of all nine counts of the indictment filed against him. Sherifi was charged with plotting to kill six witnesses who had testified against him at his 2011 terrorism trial (United States v. Boyd, et al.). On Nov. 1, 2012, his co-conspirators, Shkumbin Sherifi and Nevine Aly Elshiekh, pleaded guilty to one count of conspiracy to commit murder-for-hire and each testified during the murder-for-hire trial of Sherifi.
After his October 2011 terrorism conviction, and while awaiting his sentencing for the same, Sherifi plotted to kill three FBI agents and three government informants who testified at his terrorism trial. Sherifi sought to kill these individuals as revenge for his conviction; to prevent their testimony at co-conspirator Anes Subasic’s upcoming trial; and to get a new trial for himself. Sherifi recruited his brother, Shkumbin Sherifi, and Elshiekh, a local school teacher to assist him in his plot. The Sherifis and Elshiekh then raised money to pay for the murders.
In January 2012, Elshiekh met with a government informant whom she believed to be the “middleman” for a hit man in order to discuss the murder plot and possible targets. Elshiekh then relayed that information to Sherifi during a jail visit. Sherifi specified that he wanted each target to be beheaded and photographed after the beheading. At a second meeting with the middleman, Elshiekh confirmed the identity of a government witness to be murdered and made a down payment. The conspirators then worked together to collect the remaining funds needed to pay for the first murder. After collecting the funds, the conspirators arranged another series of meetings with the middleman to pay for the murder and get photographic confirmation of the first murder. On Jan. 22, 2012, the conspirators were all arrested shortly after Shkumbin Sherifi accepted pictures from the supposed middleman, purporting to show a beheaded government witness.
On Feb. 21, 2012, a nine-count indictment was filed charging Sherifi, Shkumbin Sherifi, and Elshiekh with conspiracy and aiding and abetting in the attempt to use interstate commerce facilities in the commission of murder-for-hire; conspiracy and aiding and abetting in the attempt to kill another person with intent to retaliate against any person for testimony given by a witness in an official proceeding; and conspiracy and aiding and abetting in the attempt to kill another person with intent to prevent the attendance or testimony of any person in an official proceeding.
The investigation of this case was conducted by the FBI Resident Agencies in Raleigh and Wilmington, N.C., with the assistance of the New Hanover County, N.C., Sheriff’s Office.
The prosecution is being handled by Assistant U.S. Attorneys J. Frank Bradsher and Brian S. Meyers of the U.S. Attorney’s Office for the Eastern District of North Carolina, and Trial Attorney Matthew F. Blue of the Counterterrorism Section in the Justice Department’s National Security Division.Celina Pharmacist Sentenced in Federal CourtRead the Press Release
William Lester Donaldson, 53, of Celina, Tennessee was sentenced on May 10, 2013, by Chief United States District Judge William J. Haynes, Jr., to serve 15 months in prison, followed by 3 years of supervised release and a fine of $25,000 for possessing Hydrocodone with the intent to distribute, announced David Rivera, Acting U.S. Attorney for the Middle District of Tennessee.
Donaldson was a pharmacist in Celina, Tenn. and on five occasions, between August 13, 2010, and October 5, 2010, in various locations in the Middle Tennessee area, he advanced and sold Hydrocodone pills to individuals without a valid prescription. Donaldson’s conduct was captured by an in-store surveillance system, showing him removing previously prepared bottles from a drawer within the pharmacy and placing them in his pocket.
Donaldson was indicted on April 20, 2011, and pleaded guilty to five counts of illegally possessing and distributing Hydrocodone on November 13, 2012.
This investigation was conducted by the Celina Police Department, the 13th Judicial District Drug Task Force, the Tennessee Bureau of Investigation, the Drug Enforcement Administration, and Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Lynne T. Ingram represented the government.
Cary Business Owner Pleads Guilty to $1 Million International Fraud SchemeRead the Press Release
ROCKFORD — A Cary, Ill. business owner pleaded guilty to wire fraud today in federal court before U.S. District Judge Frederick J. Kapala. CLARE THOMAS ANDERSON, 44, who owned and operated multiple businesses in Cary, Ill, and Florida, admitted that between April 2009 and January 2013, he schemed to defraud over $1 million from more than 10 victims that did business with the companies he operated.
According to the written plea agreement, the businesses Anderson owned and operated were Certifibre, LLC, Anderson International Global, LLC, which had an assumed name of Worldwide Paper Company, Inc., American Surplus Supply, Southernmost Exports, LLC, Southernmost Holdings, LTD, and Sea Consulting, LLC. Through these businesses, Anderson contracted to sell wood pulp and other raw materials to manufacturers, brokers and suppliers, which were usually located in foreign countries.
Anderson obtained payments from his customers before the shipments arrived at their destinations. Often, the customers obtained Letters of Credit from their banks in order to pay for the shipments in advance. Anderson admitted that he caused payments to be disbursed under these Letters of Credit to bank accounts he controlled by creating and presenting fraudulent Bills of Lading, Certificates of Origin, and packing lists. These documents falsely represented that the agreed upon quantity and quality of materials had been shipped.
Anderson admitted that instead of shipping the wood pulp or other raw materials he had agreed to sell, on various occasions he shipped worthless scrap materials to his foreign customers. When the customers called him to complain about the worthless scrap materials they had received, Anderson falsely told them that the scrap materials were intended for another customer in a different country.
Anderson further admitted that on some occasions, instead of shipping the agreed upon weights and volume of wood pulp or other raw materials, he instead shipped substantially smaller amounts of wood pulp or other raw materials. When the customers called and complained about the short shipments, Anderson falsely told them that short shipments were caused by clerical errors.
Anderson acknowledged that, in order to maximize the profits from his scheme to defraud, he often failed to pay for the materials he obtained and for the freight shipping charges. Anderson also admitted that he spent the funds that his customers sent to him on his own personal expenses.
As he acknowledged in the Plea Agreement, on a few occasions Anderson refunded some money to his victims in order to avoid detection of his scheme. Anderson paid these refunds only after the victims contacted, or threatened to contact, federal law enforcement officials. Anderson admitted that he obtained the funds used to pay these refunds by defrauding additional customers.
Anderson is scheduled to be sentenced on Aug. 22, 2013, at 2:30 p.m. Wire fraud carries a maximum penalty of up to 20 years in prison, a term of up to 3 years of supervised release following imprisonment, a $250,000 fine, and mandatory restitution. The Court may also impose a fine totaling twice the loss to any victim or twice the gain to the defendant, whichever is greater. The actual sentence will be determined by the United States District Court, guided by the advisory United States Sentencing Guidelines.
The guilty plea was announced by Gary S. Shapiro, United States Attorney for the Northern District of Illinois, and Cory B. Nelson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government is being represented by Assistant U.S. Attorney Scott A. Verseman.
Plea Agreement
C.R. Bard, Inc. to Pay U.S. $48.26 Million to Resolve False Claims Act ClaimsRead the Press Release
ATLANTA - C.R. Bard, Inc. has agreed to pay the United States $48.26 million to resolve claims that it knowingly caused false claims to be submitted to the Medicare program for brachytherapy seeds used to treat prostate cancer in violation of the False Claims Act. Bard is a New Jersey based corporation that develops, manufacturers, and markets medical products used for a variety of conditions, including prostate cancer.
The settlement requires that Bard pay $48.26 million and it resolves claims relating to Bard’s sale of brachytherapy seeds, a form of radiation therapy, to hospitals. The United States alleged that from 1998 to 2006, Bard provided illegal renumeration to customers and physiciansto induce them to purchase Bard’s seedsin violation of the Anti-kickback Statute, 42 U.S.C. § 1320a-7b(b). The illegal renumeration allegedly took the form of certain grants, guaranteed minimum rebatesconference fees, marketing assistance and/or free medical equipment that Bard paid to customers and/or physicians who used the seeds to perform treatment for prostate cancer. Hospitals ultimately submitted bills to Medicare for these seeds, which the government alleged were rendered false by Bard’s illegal kickback activity. The government alleged that Bard was liable under the False Claims Act for causing the submission of those false claims.
Sally Quillian Yates, United States Attorney for the Northern District of Georgia, said, “Illegal kickbacks in any form pervert our health care system, which is designed to insure that health care providers make decisions based solely on what is best for the patient.”
“We will continue to work with our various law enforcement partners in the pursuit of those who abuse publicly funded health care programs such as Medicare and Medicaid, through criminal prosecutions or civil settlements under the False Claims Act,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “Such abuses as we’ve seen in this case will not be tolerated.”
“Kickbacks, basically no more than bribes, erode trust in the health care system,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Region. “Companies paying illegal kickbacks to fatten their bottom lines should be prepared for aggressive investigation and prosecution.”
The civil settlement resolves a lawsuit filed in the U.S. District Court for the Northern District of Georgia by Julie Darity, a former Bard Manager for Brachytherapy Contracts Administration under the qui tam, or whistleblower provisions, of the False Claims Act. United States ex rel. Darity v. C.R. Bard, Inc., et al., Civ. Action No. 1:06-cv-0208-SCJ (N.D. Ga.). Under the False Claims Act, private citizens may bring suit for false claims on behalf of the United States and share in any recovery obtained by the government. The former manager will receive $10,134,600 as her share of the civil settlement.
In addition, pursuant to a Non-Prosecution Agreement with the United States, Bard has agreed to pay an additional $2.2 million and to take numerous remedial steps, many of which the company identified and began to implement prior to the criminal investigation, to enhance its corporate compliance program to prevent similar illegal actions in the future. For example, Bard has agreed to refine its Code of Conduct and other written policies and procedures that promote Bard’s commitment to full compliance with all Federal health care program requirements and to develop an effective program to monitor medical education grants provided by Bard to ensure compliance with those requirements.The resolutions announced today are part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover nearly $10.3 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14.2 billion.
These settlements were the result of a coordinated effort by the United States Attorney?s Office for the Northern District of Georgia; the Department of Justice, Civil Division, Commercial Litigation Branch; the Federal Bureau of Investigation, and the Department of Health and Human Services, Office of Inspector General, in investigating the allegations in this case.The case was prosecuted by Assistant United States Attorneys Neeli Ben-David and Christopher C. Bly.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
C.R. Bard Inc. to Pay U.S. $48.26 Million to Resolve False Claims Act ClaimsRead the Press Release
C.R. Bard Inc. has agreed to pay the U nited States $48.26 million to resolve claims that it knowingly caused false claims to be submitted to the Medicare program for brachytherapy seeds used to treat prostate cancer in violation of the False Claims Act. Bard is a New Jersey based corporation that develops, manufacturers, and markets medical products used for a variety of conditions, including prostate cancer.
The settlement requires that Bard pay $48.26 million and it resolves claims relating to Bard’s sale of brachytherapy seeds, a form of radiation therapy, to hospitals. The United States alleged that from 1998 to 2006, Bard provided illegal remuneration to customers and physicians to induce them to purchase Bard’s seeds, in violation of the Anti-Kickback Statute. The illegal remuneration allegedly took the form of certain grants, guaranteed minimum rebates, conference fees, marketing assistance and/or free medical equipment that Bard paid to customers and/or physicians who used the seeds to perform treatment for prostate cancer. Hospitals ultimately submitted bills to Medicare for these seeds, which the government alleged were rendered false by Bard’s illegal kickback activity. The government alleged that Bard was liable under the False Claims Act for causing the submission of those false claims.
“This settlement is part of the United States’ on-going effort to comb at the payment of illegal kickbacks to health care providers,” said Stuart F. Delery, Acting Assistant Attorney General for the Department of Justice’s Civil Division. “Such illegal payments subvert the medical marketplace and provide an unfair advantage to those who break the law.”
“Illegal kickbacks in any form pervert our health care system, which is designed to insure that health care providers make decisions based solely on what is best for the patient,” said U.S. Attorney for the Northern District of Georgia Sally Quillian Yates.
“We will continue to work with our various law enforcement partners in the pursuit of those who abuse publicly funded health care programs such as Medicare and Medicaid, through criminal prosecutions or civil settlements under the False Claims Act,” stated Mark F. Giuliano, Special Agent in Charge, FBI Atlanta Field Office. “Such abuses as we’ve seen in this case will not be tolerated.”
“Medicare beneficiaries should never have to question whether treatment recommendations are based on their doctors’ best financial interests rather than their best medical advice,” said Daniel R. Levinson, Inspector General of the U.S. Department of Health and Human Services. “Companies paying these kickback bribes should expect aggressive investigation and prosecution.”
The civil settlement resolves a lawsuit filed in the U.S. District Court for the Northern District of Georgia by Julie Darity, a former Bard manager for brachytherapy contracts administration under the qui tam, or whistleblower provisions, of the False Claims Act. United States ex rel. Darity v. C.R. Bard, Inc., et al., Civ. Action No. 1:06-cv-0208-SCJ (N.D. Ga.). Under the False Claims Act, private citizens may bring suit for false claims on behalf of the United States and share in any recovery obtained by the government. The former manager will receive $10,134,600 as her share of the civil settlement.
In addition, according to a non-prosecution agreement with the United States, Bard has agreed to pay an additional $2.2 million and to take numerous remedial steps, many of which the company identified and began to implement prior to the criminal investigation, to enhance its corporate compliance program to prevent similar illegal actions in the future. For example, Bard has agreed to refine its Code of Conduct and other written policies and procedures that promote Bard’s commitment to full compliance with all Federal health care program requirements and to develop an effective program to monitor medical education grants provided by Bard to ensure compliance with those requirements.
The resolutions announced today are part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover nearly $10.3 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $14.3 billion.These settlements were the result of a coordinated effort by the U.S. Attorney’s Office for the Northern District of Georgia; the Department of Justice, Civil Division, Commercial Litigation Branch; the FBI and HHS-OIG, in investigating the allegations in this case.
Buffalo Woman Pleads Guilty to Wire FraudRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Destinee McBride, 22, of Buffalo, N.Y., pleaded guilty before U.S. District Judge William M. Skretny, to wire fraud affecting a financial institution. The charge carries a maximum penalty of 30 years in prison, a fine of $1,000,000 or both.
Assistant U.S. Attorney Trini E. Ross, who is handling the case, stated that the defendant was part of a scheme to defraud the government by obtaining money from the filing of false tax returns. McBride received the proceeds from one of the fraudulent tax returns which was filed with the Internal Revenue Service and for which the refund was placed on a prepaid debit card. The defendant used that card to obtain cash from an ATM and merchandise from private businesses. As a result of the scheme, losses to the Internal Revenue Service totaled $534,782.00.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.The plea is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service - Criminal Investigation Division, under the direction of Special Agent- in-Charge Toni M. Weirauch, and the United States Postal Inspection Service under the direction of Kevin Niland, Inspector in Charge, Boston Division.
Sentencing is scheduled for August 29, 2013, at 9:00 a.m. before Judge Skretny.
Buffalo Man Sentenced for Heroin ConspiracyRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Jay Vellon, 40, of Buffalo, N.Y., who was convicted of conspiracy to possess with the intent to distribute, and to distribute, heroin, was sentenced to 100 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Robert C. Moscati, who handled the case, stated that between June 2008 and February 2010, Vellon conspired with others to distribute heroin in the Buffalo area. The defendant was charged, along with 26 others, in March 2010 following a joint federal, state and local takedown at Rick’s Tally Ho in Cheektowaga and 24K Solid Gold in Hamburg. To date, 26 defendants have been convicted. Assistant U.S. Attorney George C. Burgasser was also involved in the prosecution of this case.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Richard M. Frankel.Belington Attorney Sentenced to Prison for Defrauding State Public Defender ServicesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-7725 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistFollow us on Twitter @NDWVnews
ELKINS, WEST VIRGINIA - A 43 year old Belington attorney was recently sentenced to federal prison for billing the State of West Virginia for services that she did not perform.
According to United States Attorney William J. Ihlenfeld, II, attorney LISA A. WEESE was sentenced by Chief Judge John Preston Bailey to 12 months and 1 day imprisonment to be followed by three years of supervised release.
WEESE entered a plea of guilty on November 6, 2012 to “Mail Fraud.” From September 2006 to September 2011, WEESE was a panel attorney in the Circuit Court of Barbour, Randolph, Tucker and Taylor Counties. During this five-year period, WEESE submitted fraudulent vouchers to West Virginia Public Defender Services claiming to have worked more than 24 hours on each of the forty-eight days and more than 16 hours on an additional one hundred and sixty-eight days. The total amount of loss based on compensation paid to her for work she did not perform was $159,130.08. Judge Bailey is in the process of determining the precise amount of restitution that must be paid by WEESE and will provide a separate order regarding that issue in the near future.
WEESE, who is free on bond, will self-report to the designated Federal institution. The case was prosecuted by Assistant United States Attorney Stephen D. Warner and investigated by the West Virginia Commission on Special Investigations.Bank Robber Sentenced to 14 Years in Federal PrisonRead the Press Release
Portland, Ore. — James Joseph Bjorne Bennett, 55, most recently of Portland, Oregon and formerly of Fairbanks, Alaska, was sentenced to 168 months in prison today by United States District Judge Michael W. Mosman, for a string of bank robberies Bennett committed in the Portland area in September 2008. On January 4, 2011, Bennett pleaded guilty to five counts of bank robbery and two counts of attempted bank robbery. Upon release from custody, Bennett will serve a 3-year period of supervised release.
“Bank robbers endanger and intimidate tellers and bank employees, as well as anyone else who walks into the bank on the wrong day.” said U.S. Attorney S. Amanda Marshall. “This defendant will have many years in prison to reflect upon the harm he caused numerous people in these seven banks who were just trying to do their jobs and their banking.”
Bennett was arrested by the U.S. Marshals Service in September 2008. Bennett has admitted that on September 15, 2008, he robbed the Wells Fargo Bank on SE McLoughlin Blvd. in Milwaukie; on September 19, 2008, he robbed the West Coast Bank on Southwest Pacific Highway in Tigard; on September 22, 2008, he robbed the US Bank on NE Cornell Rd. in Hillsboro; on September 25, 2008, he attempted to rob the Bank of America on SE 82nd Avenue in Happy Valley and the KeyBank on SE McLoughlin Blvd. in Oak Grove, and he successfully robbed the US Bank on SE Third Street in Gresham; and on September 26, 2008, he robbed the Unitus Community Credit Union on SE Washington Street in Portland. Judge Mosman ordered Bennett to pay full restitution to the victim banks, in the amount of $14,145.98.
This case stemmed from an investigation by the Federal Bureau of Investigation, with invaluable cooperation and coordination from several local law enforcement agencies. The case was prosecuted by Assistant U.S. Attorneys Craig Gabriel and Stacie Beckerman.
Argentine National Sentenced for Receiving and Storing over 700,000 Tablets of Prescription Drugs from OverseasRead the Press Release
LOS ANGELES - A federal judge today sentenced an Argentine man, Felix Gabriel Alderete, to one year of imprisonment for his participation in a conspiracy to traffic in prescription drugs, including Lorazepam, Diazepam, Alprazolam, Ketamine, and Sibutramine.
In January 2013, Alderete pleaded guilty to the offense and admitted that in 2010, he had picked up packages from mailbox facilities in the Los Angeles area that had been sent by express mail from overseas. The packages contained tens of thousands of tablets of these drugs. According to court documents, on October 22, 2010, a search of a storage unit that defendant had visited and for which he had paid rent resulted in the discovery of nearly 60 boxes of over 700,000 tablets and over 5,000 empty pill bottles and bottles with labels. A search of an apartment that Alderete shared with others uncovered nearly 1,000 tablets along with labels and pill bottles, as well as a computer containing spreadsheets documenting sales of pharmaceuticals to customers throughout the country. Defendant left the country shortly after the searches were conducted and he was arrested when he tried to reenter the country in October 2012.
In pronouncing the sentence, United States District Judge Percy Anderson observed that the defendant had participated in a "serious offense" for over seven months that warranted a custodial sentence.This case is the product of an investigation by the Department of Homeland
Security, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and U.S. Customs and Border Protection.Release No. 13-068
12 May 2013
Monmouth County, N.J., Man Admits Distributing Images of Child Sexual AbuseRead the Press Release
TRENTON, N.J. - A Monmouth County, N.J., man today admitted using a computer in his home to distribute images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Nathan Brochstein, 40, of Wayside, N.J., pleaded guilty today before U.S. District Judge Mary L. Cooper in Trenton federal court to an information charging him with one count of distribution of child pornography.
According to documents filed in this case and statements made in court: Brochstein admitted making images and videos depicting child sexual abuse available to others on the Internet via peer-to-peer file sharing software. He also admitted possessing more than 600 images of child sexual abuse on his computer and external hard drive, which were seized from his residence in November 2012. Brochstein acknowledged that among the images and videos of child pornography he possessed and distributed were images and videos that portrayed sadistic or masochistic conduct or other depictions of violence and included images of a prepubescent minor.
The count to which Brochstein pleaded guilty carries a mandatory minimum penalty of five years in prison and a maximum potential penalty of 20 years in prison, followed by a mandatory minimum of five years of supervised release and a $250,000 fine. Sentencing is scheduled for Sept. 9, 2014.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Special Agent in Charge Andrew M. McLees, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Cari Fais of the U.S. Attorney’s Office General Crimes Unit in Newark.
14-161Defense counsel: Robert Weir Esq., Red Bank, N.J.
Brochstein, Nathan Information
10 May 2013
Youth Minister at Fifth Street Baptist Church in Levelland, Texas, in Federal Custody for Attempted Enticement of A MinorRead the Press Release
Defendant Also Worked at First Baptist Church in Lubbock, Texas
LUBBOCK, Texas --- Trevor Jacob Fortner, 25, of Lubbock, Texas, made his first appearance in federal court in Lubbock, Texas, this morning, before U.S. Magistrate Judge Nancy M. Koenig, following his arrest on a federal complaint charging attempted enticement of a minor. He was ordered detained, pending a detention hearing set for May 15, 2013. Today’s announcement was made by U.S. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Fortner is a youth minister at the Fifth Street Baptist Church in Levelland, Texas, and he also works at the First Baptist Church in Lubbock, in its publications and graphics department.
According to the affidavit filed in the case, a detective with the Lubbock Police Department (LPD), working in an undercover capacity and posing as a 15-year-old female, “Katy,” encountered an individual via the Internet, later identified as Fortner, who purported to be a 26 year-old married male. “Katy” provided Fortner a telephone number and a new email address and Fortner began sending “Katy” text messages from his cellphone. On May 7, 2013, Fortner sent “Kay” an image of his facial profile as well as a sexually-explicit image. Fortner sent sexually explicit text messages to “Katy,” and ask “Katy” to send him a “dirty pic.” Fortner was arrested by the FBI and LPD on May 8, 2013.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The maximum statutory penalty for the offense as charged is Life in federal prison, a $250,000 fine and a lifetime of supervised release.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The matter is being investigated by the FBI, the LPD and the LPD’s Internet Crimes Against Children (ICAC) Task Force. Assistant U.S. Attorney Justin Cunningham is prosecuting.
Week in Review – South BendRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
South Bend, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
Ricky Hemphill, 20, and Timothy Whitfield, 21, of South Bend, Indiana, defendants in the case US v Shaw et al., pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of racketeering.Whitfield also pled guilty to brandishing a firearm during a crime of violence.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty pleas.Parties have 10 days in which to object to the magistrate judge’s recommendation.Sentencing for both has been set for 8/8/13.These charges were filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation and the South Bend Police Department.These cases are being prosecuted by Assistant United States Attorney Donald Schmid.
Omar Lewis, 34, of Michigan City, Indiana, pled guilty before Magistrate Judge Christopher Nuechterlein to the felony offense of possession with the intent to distribute crack cocaine.Magistrate Nuechterlein is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. Sentencing has been set for 6/26/13.This charge was filed as a result of an investigation by the Drug Enforcement Administration.This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Week in Review – HammondRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Hammond, Indiana—The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITION:
Ivan Quiroz, 32, of Posen, Illinois, a defendant in the case US v Vargas et al., was sentenced by Senior District Judge Rudy to 25 years imprisonment and 5 years of supervised release after pleading guilty to one count of conspiracy to commit racketeering activity, one count of narcotics conspiracy, two counts of murder in aid of racketeering activity, and two counts of use of a firearm during and in relation to crimes of violence and drug trafficking .This case was the result of an investigation by the Federal Bureau of Investigation , the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Drug Enforcement Administration (DEA), U.S. Immigration and Customs Enforcement (ICE); the National Gang Targeting, Enforcement & Coordination Center (GangTECC); the National Gang Intelligence Center; the Chicago Police Department; the Griffith Police Department; the Hammond Police Department; the Highland Police Department; the Lake County, Indiana, HIDTA and the Houston, Texas Police Department. This case was prosecuted by Trial Attorney Joseph Cooley of the Department of Justice Criminal Division, Gang Unit, and Assistant United States Attorney David Nozick.
Week in Review – Fort WayneRead the Press Release
FOR IMMEDIATE RELEASECONTACT: Mary Hatton
www.usdoj.gov/usao/inn/ CELL: (219) 314-9993
Fort Wayne, Indiana—The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
James Dodson, 28, of Fort Wayne, Indiana, pled guilty before Magistrate Judge Roger Cosbey to the felony offense of possession of a firearm in furtherance of a drug trafficking crime.Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department.This case is being prosecuted by Assistant United States Attorney Tina Nommay.
Luther Vanhoosier, 54, of Redkey, Indiana, pled guilty before Magistrate Judge Roger Cosbey to the felony offense of possession of a firearm by a convicted felon.Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jay County Sheriff’s Department.This case is being prosecuted by Assistant United States Attorney Lesley Miller Lowery.
Craig Whigum, 19, and Brenton Ennis, 19, of Fort Wayne, Indiana, pled guilty before Magistrate Judge Roger Cosbey to the felony offenses of robbery of firearms and money and use of a firearm during a crime of violence.Magistrate Cosbey is recommending that the district court accept the tendered guilty pleas.Parties have 10 days in which to object to the magistrate judge’s recommendation. These charges were filed as a result of an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives, the Fort Wayne Police Department, the Allen County Police Department and the New Haven Police Department.These cases are being prosecuted by Assistant United States Attorney Tina Nommay.
Evangelos Doublas, 33, of Fort Wayne, Indiana, pled guilty before Magistrate Judge Roger Cosbey to the felony offense of possession with the intent to distribute marijuana. Magistrate Cosbey is recommending that the district court accept the tendered guilty plea.Parties have 10 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pulaski County, Missouri Sheriff’s Department and the Fort Wayne Police Department.This case is being prosecuted by Assistant United States Attorney Lesley Miller Lowery.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITION:
Danny Villarreal, 28, of Fort Wayne, Indiana, was sentenced by District Judge Theresa Springmann to 70 months imprisonment and 4 years of supervised release after pleading guilty to the felony offense of possession with the intent to distribute methamphetamine.This case was the result of an investigation by the Drug Enforcement Administration, the United States Postal Service-Office of the Inspector General and the Allen County Police Department.This case was prosecuted by Assistant United States Attorney Lesley Miller Lowery.
Virginia Man Sentenced to Nearly 20 Years in Prison for Conspiring to Distribute Cocaine-Defendant Hid Cocaine in Secret Compartments of Car-Read the Press Release
WASHINGTON – Darnell Antonio Parker, 43, formerly of Arlington, Va., has been sentenced to 19 years and seven months in prison for conspiring to distribute large quantities of cocaine in the Washington, D.C., metropolitan area, U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD) announced today.
Parker pled guilty in December 2012 in the U.S. District Court for the District of Columbia to conspiracy to possess with intent to distribute more than five kilograms of cocaine and money laundering. He was sentenced on May 9, 2013 by the Honorable Emmet G. Sullivan. As part of the sentence, Parker was ordered to forfeit assets in the amount of $375,000. He will be placed on supervised release for five years when his term of incarceration is complete.
According to the government’s evidence, Parker sold large amounts of cocaine to others participating in the drug conspiracy. Parker and others carried out the drug operation from September 2010 through March of 2012, when it was broken up by law enforcement. The network operated in the District of Columbia as well as in suburban Maryland.
Parker was arrested on March 1, 2012, following an investigation led by the FBI/Metropolitan Police Department Safe Streets Task Force. That day, law enforcement was conducting surveillance on Parker as he drove a Honda Accord from Washington, D.C., into a parking lot in Oxon Hill, Md. Law enforcement observed Parker exit the Honda, kneel near the driver’s side, and manipulate something inside. A few moments later, law enforcement stopped Parker a distance away after he entered another person’s vehicle.
Law enforcement stopped Parker and searched him and the Honda Accord. That search revealed approximately $10,000 in cash underneath the front passenger seat, and two secret compartments located in the side panels in the back seat. In one of the compartments, law enforcement discovered six large compressed bricks of powder cocaine that weighed slightly below six kilograms. The search of Parker himself turned up more than $7,000 in cash.
Parker was among numerous people indicted in the case. More than a dozen defendants have pled guilty to charges in the investigation.
This prosecution grew out of a long-term FBI/MPD alliance called the Safe Streets Task Force that targets violent drug trafficking gangs in the District of Columbia. The Safe Streets Initiative is funded in part by the Baltimore Washington High Intensity Drug Trafficking Area as well as the Organized Crime Drug Enforcement Task Force. The initiative involves more than 150 Safe Streets Task Forces across the country that combat street gangs by combining federal, state and local police resources. The task forces, which began in 1992 in Los Angeles and the District of Columbia, address gang activity, including drug-related crimes.
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge Parlave, and Chief Lanier thanked those who pursued the investigation from the FBI/MPD Safe Streets Task Force and other agencies. In addition, they expressed appreciation to the Prince George’s County Police Department, the U.S. Park Police, the U.S. Marshals Service, and the Maryland State Police for their assistance in the investigation.
They also acknowledged the efforts of those who worked on the investigation from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys Michelle A. Zamarin and Thomas A. Gillice, who are prosecuting the case, and Assistant U.S. Attorneys Zia Faruqui and Anthony Saler, of the Asset Forfeiture and Money Laundering Section.
13-165Villisca, Iowa, Resident Sentenced to 14 Years for Receipt of Child PornographyRead the Press Release
COUNCIL BLUFFS, IA - On May 7, 2013, Scott Allen Gibbons, a 23 year-old resident of Villisca Iowa, was sentenced to 14 years in prison for receipt of child pornography, announced United States Attorney Nicholas A. Klinefeldt. Gibbons previously pled guilty on January 10, 2013, to the charge of receipt of child pornography.
The charge against Gibbons was the result of an investigation conducted by law enforcement agencies in Iowa and Florida after a complaint by a Florida mother of an eleven year-old boy regarding inappropriate “chats” between the eleven year-old and an adult in Iowa. Investigation showed that Gibbons had established an online relationship with the eleven year-old using a “chat room” component of an on-line game. During the communication, Gibbons convinced the eleven year-old to send to Gibbons a picture of himself constituting child pornography via a text message. The child pornography was located on Gibbons’ cellular telephone by law enforcement, along with similar pictures from unknown prepubescent males.
The investigation was conducted by the Hillsborough County Sheriff Office, Tampa, Florida, and the Iowa Division of Criminal Investigation, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
U.S. Attorney's Office for the Western Disrict of Louisiana Observes National Police Week 2013: Honoring and Remembering Our Fallen Law Enforcement OfficersRead the Press Release
Shreveport/Lafayette/Alexandria/Lake Charles/Monroe, La. : Communities across the United States will come together during National Police Week - May 12th through May 18th - to honor and remember those law enforcement officers who made the ultimate sacrifice, as well as the family members, friends and fellow officers they left behind. The U.S. Attorneys will be honoring local heroes at their offices.
“Law enforcement officers face the monumental challenge of protecting and serving the public every day,” stated U.S. Attorney Stephanie Finley. “They risk their lives for all of us, and the men and women of the Western District salute and remember them during National Police Week. We specifically remember those who have fallen while on duty and the legacy of service their sacrifice leaves.”This year, the names of 321 officers killed in the line of duty are being added to the National Law Enforcement Officers Memorial in Washington, D.C. These 321 officers include 120 officers who were killed during 2012, plus 201 officers who died in previous years but whose stories of sacrifice had been lost to history until now.
The fallen officers of 2012 include two members of the law enforcement community in the Western District of Louisiana. Deputy Sheriff Randall L. Benoit, age 41, of the Calcasieu Parish Sheriff’s Office, died in an automobile accident Jan. 18, 2012. He served for 18 years and is survived by his wife. Deputy Sheriff Ricky Ray Issac Jr., age 24, of the Natchitoches Parish Sheriff’s Office, died Dec. 8, 2012, in an automobile accident as well. He is survived by his wife and newborn son.
In order to assist local public safety officers in the work that they do, the U.S. Attorney’s Office, Western District of Louisiana, offers safety and survival training to increase awareness of the hazards they encounter on a daily basis. Some of the training classes offered by the U.S. Attorney’s Office this year are “Use of Force,” “Emotional Survival for Law Enforcement,” “the Bullet Proof Mind,” and “Road Side Interview Techniques.” The remaining courses for 2013 focus on officer safety and survival, and they are offered at various times throughout the year. The course curriculum and sessions are overseen by the Western District’s Law Enforcement Coordinator, Michael Campbell, a former Chief of Police for the city of Shreveport. The Western District of Louisiana consists of 42 of Louisiana’s 64 parishes, and the courses are open to federal, state, local, military and tribal offices.
“We have and will continue to offer officer safety and survival training to increase awareness of the hazards our public safety officers face on a daily basis,” Finley stated. “Our goal is for all public safety officers to return home to their families at the end of their shifts each and every day.”
The names of all 321 fallen officers nationwide will be formally dedicated on the National Law Enforcement Officers Memorial in Washington, D.C., during the 25th Annual Candlelight Vigil on the evening of May 13, 2013. So that people across the country can experience this unique and powerful ceremony, the vigil will be webcast live over the Internet beginning at 8 p.m. (EDT) on May 13. To register for this free online event, visit www.LawMemorial.org/webcast.
U.S. Attorney to Deliver 2013 Commencement Address to Southern University Law Center GraduatesRead the Press Release
LAFAYETTE, La.: United States Attorney Stephanie A. Finley will be the keynote speaker for the 2013 Southern University Law Center (SULC) Commencement on Saturday, May 11, 2013, in the F.G. Clark Activity Center on the Southern University Baton Rouge campus. During the day’s event, U.S. Attorney Finely will speak to 173 graduates receiving their juris doctorate degrees.
“I am honored that Southern University Law Center chose me to speak to these students,” Finley said. “They are the future leaders who will serve our communities. It seems like only yesterday that I was where they are. They are now armed with a great legal education, and I am confident that they will be great lawyers who will affect meaningful change in whatever area of law that they choose to practice. I am excited for them, but will emphasize how crucial this time of transition is, and how important it is for them to remember service as they begin the next phase of their lives.
A 1991 Cum Laude graduate of SULC, Finley was recommended by Senator Mary Landrieu and appointed by President Barack Obama on Jan. 20, 2010, to serve as the top federal law enforcement officer in the Western District of Louisiana. She was confirmed by the U.S. Senate on May 28, 2010, and took the oath of office on June 2, 2010, as the first woman appointed to serve as U.S. Attorney in the State of Louisiana.Finley is responsible for overseeing federal criminal prosecutions occurring in 42 of the 64 parishes in the State for crimes ranging from acts of terrorism to public corruption, complex white collar crimes, investment schemes, organized crimes and gang activities, civil rights, internet-related crimes, drug trafficking, firearms violations, violent crimes, child exploitation, environmental crimes, tax evasion, illegal immigration and alien smuggling, among other criminal activity. She is also charged with defending the United States in civil cases and collecting debts owed to the United States.
Prior to her appointment, she served as the Senior Litigation Counsel and the Acting Deputy Chief in the Lafayette office and as an Assistant U.S. Attorney in the criminal divisions of the Shreveport and Lafayette offices of the Western District. Finley has prosecuted cases involving white collar crimes, violent crimes, civil rights, environmental crimes, drug trafficking, public corruption and tax evasion. She also served as a Special Assistant U.S. Attorney in the Western District in 1991-1992 and in the District of South Carolina in 1992-1995.
United States Attorney Finley previously served as a member of the Attorney General Advisory Committee (AGAC). The AGAC is responsible for advising the Attorney General on a broad array of Department of Justice policy issues. In addition to having served on the Attorney General’s Advisory Committee, Finley continues to serve on a number of subcommittees and working groups under the AGAC.
Before joining the U.S. Attorney’s Office in 1995, Finley was on active duty with the U.S. Air Force, stationed at England Air Force Base in Louisiana and Shaw Air Force Base in South Carolina. She currently serves as a Lieutenant Colonel in the U.S. Air Force Reserves where she is a Judge Advocate assigned to the 8th Air Force Global Strike Command located at Barksdale Air Force Base. Prior to being at the 8th Air Force, she was assigned to the 2nd Bomb Wing Judge Advocate General’s Office at Barksdale Air Force Base. Her duties as a JAG officer have included serving as a hearing officer for criminal cases and administrative discharge boards, working in the areas of contract and labor law and military justice as well as providing legal assistance services for active duty, reservists and dependants of the military.
U.S. Attorney Finley has served as the Criminal Bar Examiner and an Assistant Bar Examiner for the Louisiana Bar. She is the recipient of various awards recognizing her leadership and public service. Finley has been honored as a “Top 20 under 40” recipient, one of Lafayette’s “Women Who Mean Business,” a “Person of Excellence” recipient from the National Association of University Women, a Torchbearer’s Award recipient, Grambling State University’s Beacon Award recipient for public service and a public service award recipient at Alpha Kappa Alpha’s Regional Conference.
Finley is a Magna Cum Laude graduate of Grambling State University, where she earned a bachelor’s degree in political science and was selected as one of the nation’s distinguished graduates of the Reserve Officer Training Corps. She is a Cum Laude graduate of SULC where she received her Juris Doctorate in 1991 and was the editor-in-chief of the Southern University Law Review. In 2011, she was inducted into the Southern University Law Center Hall of Fame.
Southern University Law Center (SULC) is located in Baton Rouge, La. The law school was established in 1947. Today SULC has more than 3,000 alumni and is noted as one of the most diverse law schools in the country. In addition to daytime classes, SULC offers a part-time evening program with classes meeting on Monday through Thursday from 6 p.m. to 9 p.m. For more information on Southern University Law Center visit www.sulc.edu.Two Woman Convicted in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
HOUSTON – Yevette Lauren Walton and Lakisha Lashell Rogers have entered pleas of guilty for conspiring to submit fraudulent tax refund claims in the names of 53 stolen identities during the current 2013 tax season, United States Attorney Kenneth Magidson announced today along with Lucy Cruz, special agent in charge of Internal Revenue Service - Criminal Investigation (IRS-CI). Walton and Rogers were prosecuted as part of the national Stolen Identity Refund Fraud (SIRF) initiative that has resulted in arrests throughout the United States in recent months.
“These SIRF cases exemplify the IRS’s intense focus on the pursuit of refund fraud and identity thieves,” said Cruz. “We will continue to work in partnership with law enforcement agencies and the U.S. Attorney’s Office to hold those accountable that engage in identity theft and systematically defraud the government and the taxpaying public.”
Today, Walton and Rogers admitted that between Feb. 15, 2013, and Feb. 27, 2013, they met with a tax return preparer, interviewed him and concluded he could prepare and electronically file false tax refund claims for them. Walton and Rogers provided this person with approximately 37 names, Social Security numbers and other means of identification. Walton and/or Rogers told the tax return preparer the names were “good” because they had previously been used to get refunds.
The women also provided automated teller machine debit card routing numbers. This way, the refunds, which were expected to total approximately $220,000, could be credited to the cards and easily used to withdraw funds in an untraceable manner. Walton and Rogers then engaged in a number of telephone conversations with the tax return preparer to check on the status of the refund claims.
Upon their arrests, Walton and Rogers had another 16 names and other means of identification on them intended to be used to file a second set of false and fraudulent refund claims approximately totaling an additional $200,000. Despite Walton’s and Rogers’ efforts, prompt action by federal law enforcement prevented any actual loss to the National Treasury from the use of the 53 stolen identities during 2013. However, actual losses of about $60,000 and attempted losses of approximately $120,000 have been traced to fraudulent tax refunds in 2012.
U.S. District Judge Lee H. Rosenthal, who accepted the guilty pleas, has set sentencing for Aug. 21, 2013, at which time Walton and Rogers face up to 10 years in prison and a $250,000 fine. Both women were arrested March 8, 2013, and have been in custody since that time where they will remain pending sentencing.
The investigation leading to these charges was conducted by IRS-CI and the United States Postal Inspection Service. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the case.
Two Perpetrators of Nationwide Foreclosure Rescue Scam - Walkawaytoday.Org - Plead GuiltyRead the Press Release
ALEXANDRIA, Va. – Mark S. Farhood, 49, formerly of San Diego, Cal., and Jason S. Sant, 37, of Lecanto, Fla., pleaded guilty today to conspiracy charges in connection with their operation of a nationwide online foreclosure rescue scam that went by various names, including Home Advocate Trustees and Walk Away Today, and used various web sites, including walkawaytoday.org and sellfastusa.com, to deceive hundreds of vulnerable, distressed homeowners into surrendering their properties to the company.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Christy L. Romero, Special Inspector General for the Troubled Asset Relief Program, or SIGTARP; and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the pleas were accepted by United States District Judge Anthony J. Trenga. Farhood and Sant each face a maximum penalty of 30 years in prison when they are sentenced on August 2, 2013, and August 9, 2013, respectively.
According to court records, Farhood and Sant co-owned Home Advocate Trustees, which also went by the names Walk Away Today, First Equity Trustees, Home Security Consultants, Sell Fast USA, Short Sale Buyer, USA Sell House Fast, and USA Rental Housing. They marketed the businesses nationwide as purchasers of distressed real estate and a means by which vulnerable homeowners could avoid foreclosure and the accompanying negative effects on their credit. The companies told homeowners they were in the business of negotiating with lenders to purchase mortgage notes at a discount and falsely claimed to have been in business for seventeen years, to have experienced a 90% success rate in purchasing such notes, and to be the nation’s largest volume buyer of short sale and over-leveraged real estate.
As Sant and Farhood admitted in connection with their pleas, the businesses were a fraud, no such negotiations with lenders ever took place, and the scheme was merely a way for them to take possession of hundreds of residential properties, including homes within the Eastern District of Virginia, at virtually no cost and then reap millions of dollars in profits by renting the homes to unsuspecting tenants.
Farhood and Sant further admitted that as part of the scheme, they submitted fraudulent loan modification applications to mortgage lenders under the U.S. Department of the Treasury’s Home Affordable Modification Program (“HAMP”) in the name of homeowners, without the homeowners’ knowledge or consent. Farhood and Sant used the fraudulent applications to stall foreclosures on the properties under their control and for which no mortgage payments were being made and to maximize the time period during which they could collect rental income.
The homes purportedly sold to Home Advocate Trustees and its related entities ended in foreclosure, harming the participating homeowners and commonly resulting in eviction of the tenants.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
This ongoing investigation is being conducted by SIGTARP and the FBI’s Washington Field Office. Assistant United States Attorney Paul J. Nathanson is prosecuting the case on behalf of the United States.Two Men Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that brothers Joey White Eagle, age 32, from Fort Totten, North Dakota, and Ansel White Eagle, Jr., age 33, from Bullhead, South Dakota were convicted of Assault by Striking, Beating and Wounding and were sentenced on May 8, 2013 by U.S. Magistrate Judge William D. Gerdes.
Ansel White Eagle, Jr. was sentenced to 6 months in custody and a $10 assessment to the Federal Crime Victims Fund. Joey White Eagle was sentenced to one year of probation with four months of home confinement and a $10 assessment to the Federal Crime Victims Fund.
The convictions stem from a gang fight that occurred on April 24, 2010 at Bullhead between the Little Eagle family and their supporters, and the White Eagle family and their supporters.
The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Ansel White Eagle, Jr., was remanded to the custody of the U.S. Marshal to begin serving his sentence.
Three Former Employees of Timeshare Consulting Firm Admit Conspiring to Defraud Timeshare OwnersRead the Press Release
CAMDEN, N.J. – Three former employees of The Vacation Ownership Group LLC admitted to conspiring to defraud owners of timeshare properties by offering phony consulting services, U.S. Attorney Paul J. Fishman announced. One of the defendants also admitted to illegally collecting unemployment benefits.
Jeffrey Sawyer, 50, of Mullica Hill, N.J., pleaded guilty today before U.S. District Court Judge Noel L. Hillman in Camden federal court to an Information charging him with one count of conspiracy to commit mail and wire fraud.
Steven Cox, a/k/a “Steve Coluzzi,” 49, of Ventnor, N.J., pleaded guilty on May 7, 2013 before Judge Hillman to a Superseding Information charging him with one count of conspiracy to commit mail and wire fraud.
Eric K. Reiff, a/k/a “Skip,” a/k/a “Skip Ray,” 41, of Ocean City, N.J., pleaded guilty on May 1, 2013, before Judge Hillman to an Information charging him with one count of conspiracy to commit mail and wire fraud and one count of wire fraud.
According to documents filed in these cases and statements made in court:
The Vacation Ownership Group, a/k/a VO Group LLC, had offices in Mays Landing and Egg Harbor Township, N.J., and claimed to offer consulting services to owners of timeshares, including cancelling, purchasing and upgrading the timeshares.
In 2010, the four defendants started working at the VO Group and were trained by VO Group managers to call customers using prepared scripts. The defendants each called customers and gave the customers the false impression that they were working for a bank or lending institution. After hearing defendants’ false representations, some customers sent checks to the VO Group. Reiff falsely told an individual with the initials “SK” that SK could settle all of SK’s timeshare debt for a “one time” price and induced SK to send a check for $21,328.28 to the VO Group. Cox told “NP” that NP could settle his timeshare debt for a large discount by mailing a $26,585 check to the VO Group. Sawyer pretended to be a satisfied VO Group customer to persuade others to send money to the VO Group. Each defendant admitted causing substantial losses: Sawyer admitted causing more than $70,000 in losses; Reiff admitted causing more than $120,000 in losses; and Cox admitted causing more than $200,000 in losses.
Reiff also admitted to devising a separate scheme to defraud the N.J. Department of Labor by collecting unemployment compensation benefits while working at the VO Group. Reiff admitted to applying for and being awarded $12,600 in unemployment compensation benefits to which he was not entitled.
On Jan. 23, 2013, co-owners Adam Lacerda and Ashley Lacerda and other members of the VO Group were charged in a Superseding Indictment with conspiracy to commit mail and wire fraud and other charges. Additional members of the VO Group were also charged by Criminal Complaint in April 2012. As for the Lacerdas and other defendants who have not been convicted in this case, the charges and allegations against them are merely accusations and they are considered innocent unless and until proven guilty.
The mail and wire fraud conspiracy charge to which the three defendants pleaded guilty is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. The wire fraud charge to which Reiff pleaded guilty is also punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss caused by the offense.
Sentencings are scheduled as follows: Sawyer and Cox, Sept. 27, 2013; Reiff, Sept. 20, 2013.
U.S. Attorney Fishman credited special agents from the FBI’s Atlantic City Resident
Agency, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and special agents from the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Robert Panella, New York Region, for their roles in the investigation leading to the guilty pleas. He also thanked the N.J. Department of Labor, Benefit Payment Control Unit, for its assistance.The government is represented by Assistant U.S. Attorneys Alyson M. Oswald and R. David Walk, Jr. of the U.S. Attorney’s Office Criminal Division in Camden.
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Defense counsel: Reiff: Troy Archie Esq., Cinnaminson, N.J.
Sawyer: Mark E. Roddy Esq., Pleasantville, N.J.
Cox: Jeffrey M. Miller Esq., PhiladelphiaReiff Information
Sawyer Information
Cox Superseding InformationTheodore Edward Whitford Pleads Guilty in U.S. Federal CourtRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on May 9, 2013, before U.S. Magistrate Judge Keith Strong, THEODORE EDWARD WHITFORD, a 27-year-old resident of Box Elder and an enrolled member of the federally recognized Chippewa Cree Indian Tribe, pled guilty to assault resulting in serious bodily injury. Sentencing has been set for August 15, 2013. He is currently detained.
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 April 8, 2011, WHITFORD turned the vehicle he was driving west into the Northern Winz Casino parking lot and was struck by another vehicle traveling north on Highway 87. This vehicle had the right-of-way.
A toxicology report indicated that WHITFORD had a BAC of .265 and screened positive for both opiates and THC. The crash occurred within the exterior boundaries of the Rocky Boy's Indian Reservation.
As a result of the crash, a passenger in the other vehicle was seriously injured. The passenger was diagnosed with a hip fracture and required hospitalization.
WHITFORD faces possible penalties of 10 years in prison, a $250,000 fine and 3 years supervised release.
The investigation was a cooperative effort between the Federal Bureau of Investigation, Hill County Sheriff's Office, and the Rocky Boy's Police Department.
St. Bernard Parish, Louisiana Agrees to $2.5 Million Settlementto Resolve Housing Discrimination LawsuitsRead the Press Release
The Justice Department announced today that St. Bernard Parish, La., has agreed to a settlement valued at more than $2.5 million to resolve separate lawsuits by the United States and private plaintiffs alleging that the parish sought to restrict rental housing to African Americans in the aftermath of Hurricane Katrina.
The United States’ lawsuit alleged, among other things, that the parish: (1) passed a law, known as the permissive use permit ordinance, that prevented homeowners from renting single-family homes in residential zones without first obtaining a permit from the parish; (2) revised its zoning code to reduce dramatically the amount of land available for multi-family apartments; and (3) interfered with individuals’ housing rights. The lawsuit further alleged that these actions were done to limit or deny rental housing to African-Americans in violation of the Fair Housing Act. These actions came on the heels of the parish’s other efforts after Hurricane Katrina to restrict rental housing opportunities, including halting the re-establishment or redevelopment of rental housing and enacting a permit requirement for single-family rentals but exempting renters who were “related by blood” to the homeowners. The parish later rescinded these restrictions.
“The Fair Housing Act is clear that local governments cannot use their zoning and land-use laws to discriminate on the basis of race,” said Eric Halperin, Senior Counsel and Special Counsel for Fair Lending in the Civil Rights Division. “People should have the freedom to choose where they live, without regard to race, and this innovative settlement will create greater housing opportunities in the New Orleans area.”
“The right of all of our citizens to enjoy fair and equal access to housing opportunities is guaranteed by our laws,” said Dana Boente, U.S. Attorney for the Eastern District of Louisiana. “The U.S. Department of Justice is committed to fiercely protecting those rights in order to ensure the quality of life all Americans deserve.”
“No community has the right to keep people from living in that community because of their race,” said John Trasviña, U.S. Department of Housing and Urban Development (HUD) Assistant Secretary for Fair Housing and Equal Opportunity. “HUD and the Justice Department are committed to taking action against municipalities that violate the Fair Housing Act by instituting discriminatory zoning and other housing practices.”
Under the settlement, which still must be approved by the U.S. District Court for the Eastern District of Louisiana, the parish must pay $275,000 to eight aggrieved persons identified by the United States and $15,000 to the United States as a civil penalty, establish a new Office of Fair Housing and hire a fair housing coordinator with a gross annual salary of at least $40,000, spend $25,000 each year in a marketing and advertising campaign to attract renters and developers of multi-family rental housing to the parish, and establish a rental land grant program through which the parish will transfer lands in its possession, free of cost, to qualified persons or entities who are willing to create or rehabilitate housing for rental purposes. The land grant program, which requires the parish to offer lands worth up to $83,000 each year, will last for five years; other programmatic features will last for three. Parish officials must also undergo fair-housing training and provide periodic reports to the United States. In a separate agreement, the parish agreed to pay $1.65 million in compensation, costs and attorneys’ fees to two sets of private plaintiffs.
On Jan. 28, 2011, HUD initiated a fair housing complaint against St. Bernard Parish alleging it adopted and implemented zoning ordinances that denied or restricted housing to persons based on their race. HUD demanded the parish rescind two key discriminatory ordinances and on April 8, 2011, the parish complied. Following its investigation, HUD referred eight complaints from parish homeowners to the Justice Department alleging that the parish’s zoning processes were discriminatory In January 2012 HUD referred the secretary-initiated complaint to the Justice Department as well. The Justice Department conducted its own investigation and filed suit in January 2012.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact HUD at 1-800-669-9777.
Related Materials:
St. Bernard Motion for Approval of the Settlement
St. Bernard SettlementSpirit Lake, Iowa Resident Sentenced to 7 Years for Receipt of Child PornographyRead the Press Release
COUNCIL BLUFFS, IA - On May 8, 2013, Edward S. Robertson, a 26 year-old resident of Spirit Lake, Iowa, was sentenced by United States District Court Judge John A. Jarvey to 7 years in prison for receipt of child pornography, announced United States Attorney Nicholas A. Klinefeldt. In addition, Judge Jarvey ordered that upon release from prison, Robertson will be placed on ten years of supervised release. During supervised release, Robertson will be monitored by the United States Probation Office for compliance with conditions of release set by the Court at the time of sentencing.
Robertson was found guilty by a jury of receiving child pornography on January 15, 2013. The guilty verdict was returned after the jury heard evidence showing that Robertson, while residing in Neola, Iowa, was obtaining images along with videos of prepubescent and adolescent children engaged in sexually explicit conduct over the internet from October of 2008, until March 24, 2009.
The investigation was conducted by the Iowa Division of Criminal Investigations, Cyber Crimes Unit; the Pottawattamie County Attorney’s Office, and Department of Homeland Security. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Spearfish Man Pleads Guilty to Mail Fraud and Misbranding of A DrugRead the Press Release
United States Attorney Brendan V. Johnson announced that John Martin, age 74, of Spearfish, South Dakota appeared before U.S. Magistrate Judge Veronica L. Duffy on May 9, 2013 and pled guilty to a charge of Mail Fraud and a charge of Misbranding of a Drug. The maximum penalty upon conviction is 20 years' imprisonment and/or a $250,000 fine.
Between February 27, 2007 and December 31, 2011, Martin, who is not a physician, instructed a person to send him money and samples of blood, saliva, and hair so he could test the samples for cancer. Additionally, in April 2011 Martin directed a person to take herbal supplement pills as a treatment for cancer.
The investigation was conducted by the U.S. Postal Inspection Service, the U.S. Food and Drug Administration-Office of Criminal Investigations, the South Dakota Division of Criminal Investigation, the Spearfish Police Department, the Belle Fourche Police Department, and the Butte County Sheriff=s Office. The case is being prosecuted by Assistant U.S. Attorney Eric Kelderman.
A presentence investigation was ordered and a sentencing date will be scheduled. The defendant was released on bond pending sentencing.
Seven Indicted on Drug Conspiracy ChargesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on May 9, 2013, Martez Moore, a.k.a. “Tez” and “Mo,” 38, of Belleville, Antwone Johnson, a.k.a. “Twon,” 33, of Cahokia; Dewayne Hill, 38, St. Clair County, Brian Matthews, a.k.a. “Caine,” 46, St. Clair County, Jaren Jamison, a.k.a. “J,” 25, of Cahokia, Bryant Sawyer, 27, St. Clair County, and Orlando Ward, 41, of Belleville, were indicted by a Federal Grand Jury sitting in Benton, Illinois, in a four count indictment charging all in Count 1 with Conspiracy to Distribute and Possess with Intent to Distribute Cocaine, the amount being in excess of five kilograms. All but Ward were also charged in Count 2 with Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Moore and Johnson were also charged in Counts 3 and 4 of the Indictment with Distribution of Cocaine Base, in the form commonly referred to as “crack” cocaine. The Indictment also has a forfeiture allegation relating to four firearms.
The conspiracy is alleged to have taken place from April 5, 2013, to May 7, 2013, in St. Clair and Madison Counties. The allegation contained in Count 2 is alleged to have taken place on May 7, 2013, in St. Clair and Madison Counties. The allegation contained in Count 3 is alleged to have taken place on April 5, 2013, and the allegation contained in Count 4 is alleged to have taken place on April 11, 2013, both in St. Clair County.
If convicted, the maximum penalties are as follows: Count 1 – not less than 10 years, up to life in prison, a $10,000,000 fine, not less than 5 years supervised release, and a $100 special assessment; Count 2 – not less than 5 years, up to life in prison consecutive to the sentence on Count 1, a $250,000 fine, up to 5 years supervised release, and a $100 special assessment; Count 3 – up to 20 years in prison, a $1,000,000 fine, not less than 3 years supervised release, and a $100 special assessment; Count 4 – not less than 5 years, but up to 40 years in prison, a $5,000,000 fine, not less than 4 years supervised release, and a $100 special assessment.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
Information leading to the charges was obtained in an investigation conducted jointly by federal, state, and local law enforcement agencies working in partnership.
Rulo Man Sentenced to 18 Months Imprisonment for Failing to Register as a Sex OffenderRead the Press Release
Roger W. Price, age 51 of Rulo, Nebraska, was sentenced for his failure to register as a sex offender. The Honorable Joseph F. Bataillon sentenced Price to an 18 month term of imprisonment. After his release from prison, Price will begin a term of supervised release of 10 years.
Price was previously convicted in the State of Delaware of an offence requiring him to register as a sex offender for life. In October of 2012, United States Marshals Service became aware that Price was living in Rulo, Nebraska. It was determined that Price had been in Nebraska for at least two months. Price had not registered as a sex offender with the Nebraska State Patrol.
This case was the result of an investigation by the United States Marshals Service.
Rocky Mount Return Preparer Sentenced for Preparing False Tax ReturnsRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that yesterday, May 9, 2013, United States District Judge Terrence W. Boyle sentenced DELANE F. ALSTON, of Rocky Mount, North Carolina, for aiding and assisting in the preparation of false federal income tax returns, in violation of Title 26, United States Code, Section 7206(1). ALSTON was sentenced to 41 months imprisonment, followed by a one-year term of supervised release. ALSTON was also ordered to pay restitution in the amount of $121,845.
Mr. Walker stated, “Crooked tax return preparers betray the public trust, wreak havoc on tax administration, and stick honest, law-abiding taxpayers with the bill.”
The investigation revealed that ALSTON worked as a return preparer at P&A Tax Services, a tax return preparation business, between 2007 through 2011. ALSTON initially prepared returns at a P&A Tax Services office located in Rocky Mount, but she later transferred to the Spring Hope, N.C., office. ALSTON was the manager of the Spring Hope office in 2008, 2009 and 2011. Between 2009 and 2011, ALSTON prepared and filed over 100 false and fraudulent federal income tax returns for P&A customers, resulting in estimated tax losses to the government in excess of $600,000. For her services, ALSTON took a cash cut of the unlawful refund amounts generated by the returns she prepared. The false reporting information on the returns included false dependents, deductions, and credits.
Charlotte Field Office Special Agent in Charge Jeannine A. Hammett, IRS-Criminal Investigation stated, “IRS- Criminal Investigation is committed to pursuing tax preparers who undermine the federal tax system by assisting in the filing of ‘padded’ and fraudulent refund claims. Preparers like this defendant seek to enrich themselves by essentially stealing from all of us who pay our taxes honestly. This case demonstrates that these criminals should not expect a slap on the wrist; they should expect to be prosecuted and to spend time in federal prison.”
The investigation of this case was conducted by the Internal Revenue Service, Criminal Investigation. The case was prosecuted by Assistant United States Attorney Adam F. Hulbig.
Reputed Aryan Brotherhood of Texas Gang Leader Pleads Guilty to Federal Racketeering ChargesRead the Press Release
An alleged general of the Aryan Brotherhood of Texas gang (ABT) pleaded guilty today to racketeering charges related to his membership in the ABT’s criminal enterprise, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Charles Lee Roberts, aka “Jive,” 67, of Beaumont, Texas, pleaded guilty before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.
According to court documents, Roberts and other ABT gang members and associates, agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Roberts and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
By pleading guilty to racketeering charges, Roberts admitted to being a member of the ABT criminal enterprise.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
At sentencing, scheduled for Sept. 26, 2013, Roberts faces a maximum penalty of life in prison.
Roberts is one of 35 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. Ben Christian Dillon, 40, of Houston; James Marshall Meldrum, 40, of Dallas; Chad Ray Folmsbee, 30, of Houston; and Chrisopher Morris, 37, of Dallas, each previously pleaded guilty to racketeering conspiracy for their roles in the criminal enterprise.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite, Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office of the Southern District of Texas.
Reputed Aryan Brotherhood of Texas Gang Leader Pleads Guilty to Federal Racketeering ChargesRead the Press Release
HOUSTON – An alleged general of the Aryan Brotherhood of Texas (ABT) gang pleaded guilty today to racketeering charges related to his membership in the ABT’s criminal enterprise, announced United States Attorney Kenneth Magidson and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
Charles Lee Roberts, aka “Jive,” 67, of Beaumont, pleaded guilty before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.
According to court documents, Roberts and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Roberts and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
By pleading guilty to racketeering charges, Roberts admitted to being a member of the ABT criminal enterprise.
According to the superseding indictment, the ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the superseding indictment, previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT expanded its criminal enterprise to include illegal activities for profit.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to the superseding indictment, in order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
At sentencing, scheduled for Sept. 26, 2013, at 2:00 p.m., Roberts faces a maximum penalty of life in prison.
Roberts is one of 35 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. Ben Christian Dillon, 40, and Chad Ray Folmsbee, 30, both of Houston; and James Marshall Meldrum, 40, and Chrisopher Morris, 37, both of Dallas, each previously pleaded guilty to racketeering conspiracy for their roles in the criminal enterprise.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Texas Department of Criminal Justice – Office of Inspector General; Sheriff’s Offices in Montgomery, Harris, Atascosa, Orange and Waller Counties; Houston Police Department-Gang Division; police departments in Alvin, Carrollton and Mesquite; and District Attorney’s Offices in Montgomery and Atascosa Counties.The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office of the Southern District of Texas.
Quincy Man Sentenced on Charges Related to PrositutionRead the Press Release
BOSTON – A Quincy man was sentenced yesterday on charges related to a prostitution ring.
Jin Liang Chen, a/k/a Mike, 33, was sentenced by U.S. District Judge George A. O’Toole to 28 months in prison, followed by five years of supervised release. In November 2011, Chen pleaded guilty to conspiracy to transport women to travel for the purpose of prostitution, forced labor, and harboring aliens.
From August 2004 through February 2010, Chen, along with Hong Wei, a/k/a Ms. Chen, 37, previously of New York; Xiang Hua Zhang, a/k/a Darren, 27, of New York; Yu En Jin, a/k/a Eric, 26, of Quincy; and Don Kai Chen, 41, of Quincy, engaged in a conspiracy to entice Asian women to travel to Massachusetts to engage in prostitution. The conspiracy involved the use of advertising in various newspapers in New York, California, Massachusetts, and elsewhere, seeking the services of Asian women to work in the defendants’ brothels. The women generally arrived at South Street Bus Station in Boston from New York and elsewhere around the country and were transported by the defendants to various apartments throughout Massachusetts where they then engaged in prostitution. Some of the women were not legally in the United States when they were harbored in the brothels. Some of the women were forced to work in the brothels.
Last month, Hong Wei was sentenced to five years in prison. In November 2011, Zhang was sentenced to 21 months in prison. Jin is pending trial. In March 2012, Don Kai Chen was sentenced to 15 months in prison.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Boston Police Commissioner Edward Davis; Chief Paul Keenan of the Quincy Police Department; Sheriff Thomas M. Hodgson of the Bristol County Sheriff’s Office; and Chief Michael Kent of the Burlington Police Department. The case is being prosecuted by Assistant U.S. Attorneys Laura J. Kaplan and Timothy Moran in the Organized Crime Strike Force Unit.
Previously Convicted Felon Charged in Stolen Identity Tax Refund Scheme and Possession of A FirearmRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), announced the indictment of David Joseph, 27, of Ft. Lauderdale, on identity theft and tax refund fraud charges and possession of a firearm by a convicted felon. Defendant Joseph made his initial appearance in federal court earlier today before U.S. Magistrate Judge Barry S. Seltzer in Ft. Lauderdale.
The indictment charges defendant David Joseph with four counts of filing false claims with the IRS, in violation of 18 U.S.C. § 287, one count of access device fraud, in violation of 18 U.S.C. § 1029(a) (3), four counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A (a) (1), and one count of possession of a firearm by a convicted felon, in violation of 18 U.S.C. §§ 922(g)(1) and 924(a)(2). The indictment also includes a forfeiture allegation, pursuant to Title 18, United States Code, Section 924(d)(1).
According to the affidavit filed in support of the criminal complaint, on April 25, 2013, USSS and IRS-CI agents executed a search warrant at a residence in West Park, Florida, regarding possible stolen identities and tax refund fraud (SIRF) activities at the subject location. SIRF involves the unauthorized use of victims’ identities and personal information to file fraudulent tax returns requesting fraudulent, refunds. During the search, the agents recovered numerous notebooks, medical printouts, IRS correspondence, prepaid debit cards, bank documents, and various other documents that contained thousands of access devices— victims’ names with corresponding social security numbers and dates of birth. A fully loaded semi-automatic MasterPiece Arms 9 mm pistol and additional ammunition belonging to defendant Joseph, a previously convicted felon, was also recovered.
If convicted, the defendant faces a maximum of five years’ in prison on each of the fraudulent claims counts, up to 10 years in prison on the access device fraud count, up to 2 years on each aggravated identity theft count, and up to 10 years in prison on the count of possession of a firearm by a convicted felon.
Mr. Ferrer commended the investigative efforts of the USSS, IRS-CI, and ATF. The case is being prosecuted by Assistant U.S. Attorney Bertha R. Mitrani.
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.